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Small Pet Stores Find Ways to Compete with Big Boxes

By Bair, Jessica
Publication: Central Penn Business Journal
Date: Friday, October 13 2006

The pet-store industry involves more than just selling dog treats and scratching posts. Knowledge and expertise will help pet-shop owners succeed in the midst of big-box retailers, said Brad Spellman, owner of York Pet Supply in York Township, York County.

"I think one of the things where

I have an edge over the others is all of the experience I have," Spellman said.

Spellman has about 35 years of experience in the retail pet industry. The past 15 years have been spent in his store, where he seemingly sells everything except cats and dogs. York Pet Supply sells reptiles, birds and fish, as well as all of the toys and supplies needed for almost any animal.

Big-box pet stores often have younger workers who do not give out accurate pet information, Spellman said. He often gets customers who complain of the misinformation they receive at chain pet stores. He tries to help fix their problems.

An initial drop in Spellman's customer base is not uncommon when a big retailer that offers pet supplies opens nearby, but things tend to go back to normal shortly.

"Things have changed in the business over the years. I think I've built a pretty loyal following and a good customer base just by knowing what I'm talking about," Spellman said.

Wesley Senst co-owns an independent pet shop in Springettsbury Township, York County, with his mother. Getty's Pet Shop is a full-line pet store that opened in 1957 and specializes in selling dogs, cats and fish.

Big-box retailers such as PetSmart initially dent the customer base at Getty's, but the numbers always come back up, Senst said.

Senst's biggest competition is not chain pet stores, but the Wal-Mart across the street. Because of the lower prices that grocery stores and Wal-Mart are able to offer on pet food, Senst has had to drop Iams dog food from his inventory.

"Everyone has an expanded pet department these days. It's not just pet stores that we're also competing with," Spellman said. "It's everywhere."

Spellman hasn't changed much about his store's operations over the years in response to the new kinds of competition.

"Some stores have tried to go a more holistic or natural way. For our geographic area, we don't have a big store around us, so it's kind of business as usual," Spellman said.

Spellman noticed that other small pet shops in his area have been going out of business. This is common when a big box comes into an area and starts offering prices that small stores can't compete with. He recommends that struggling or new stores find a specific area to specialize in, such as reptiles or birds.

This is advice that Melissa Oleski has already taken. She opened Kylie's CanineTreats in New Cumberland in January. The store specializes in selling all-natural gourmet dog treats, as well as bandannas, accessories and stockings for the holidays.

Oleski went all-natural because her dog suffers from allergies and stomach ailments. The store is named after her dog, Kylie, a golden retriever and labrador mix.

"There's not really any direct type of competition to us because the types of treats we sell aren't what you can get (in a big-box pet store)," Oleski said.

Oleski attributes her store's success to being able to cater to those who wish to feed their canine friends natural food, those who have to feed them natural food because of health issues and those who want a special treat for their dogs. It is also helpful that the store is on Bridge Street, where there is a lot of walk-by traffic.

It's necessary for a small shop like hers to have a targeted niche market, Oleski said.

"Unless they add something specialized to what they already have, if Wal-Mart or whatever is built right up the street, small, momand-pop stores are going to the wayside," Oleski said.

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