Are Pet Stores Profitable? + How To Boost Your Bottom Line

You opened a pet store because you care about animals.

Because you wanted to build something meaningful in your community. Because you believed pet parents deserve better than the big-box experience, and you were willing to bet on yourself to deliver.

That passion is what gets you through the long days, the heavy lifting, and the 10th time answering the same question about grain-free dog food.

But at some point, a different question starts creeping in:

Is running a pet store profitable?

This blog answers that question, plus gives you tips on how to boost your pet store’s bottom line. Let’s dive in.

Are Pet Stores Profitable?

So, let’s start with the honest question: Are pet stores profitable? The short answer is yes.

The American Pet Products Association (APPA) reports that total U.S. pet industry spending is projected to reach around $157 billion in 2025, continuing a steady pattern of year-over-year growth. Pet stores also tend to operate with higher-than-average margins, often landing in the 30–50% range, depending on product mix and services.

That said, a growing industry doesn’t guarantee growing profits. Many pet stores stay busy without ever feeling financially secure. 

Profitability comes down to how well you manage inventory, pricing, services, and day-to-day operations.

That’s where the following pet store strategies make all the difference. 

1. Track What’s Profitable

High sales don’t mean high profit.

You can probably tell anyone what sells in your store without looking at a report. You know which food brands move fastest and which treats customers ask for by name. What’s harder to see is which categories are carrying your business.

Food, accessories, and services all behave differently:

• Food usually turns quickly but runs on thinner margins
• Accessories often carry higher margins but sell more slowly
• Grooming and services provide consistent revenue without inventory risk

Then there are the less obvious drains on your profit:

• Damaged bags and expired food that never make it to the register
• Small amounts of shrink that add up month after month
• Discounts you apply too often because it feels helpful in the moment
• Restocking mistakes that leave your cash sitting on shelves

It's common to assume a busy category is a profitable one. In reality, that category might be carrying higher labor costs, more spoilage, or heavier discounting than you expected. Without looking at gross margin by category, it's easy to miss.

Here’s what profitable pet stores do differently:

• Review category-level margins monthly
• Look at the sell-through rates
• Adjust pricing, ordering, or promotions when food margins are thin
• Trim back selection on slow-moving accessories

Reporting dashboards and margin analysis tools make these reviews practical, especially when your sales data flows cleanly into accounting systems like QuickBooks.

Related Read: A Quick Guide to Pet Store Profit Margins

2. Automate Smart Ordering To Protect Cash Flow

Manual purchase orders quietly drain your profit.

You probably don't overorder intentionally. It usually starts with reasonable decisions:

• Ordering extra food "just in case"
• Forgetting what's already in your stockroom
• Rushing a purchase order because a key item unexpectedly ran out

Over time, those decisions add up. Your cash gets tied up in slow-moving inventory. Your shelves fill with products you can't discount because of MAP pricing. Your storage space becomes cluttered, and ordering decisions get harder instead of easier.

Many owners don't realize how much money is sitting on their shelves until they try to pay a vendor bill or cover payroll.

Lean pet stores rely on:

• Ordering systems tied to sales velocity
• Reorder thresholds that prevent overbuying
• Days-of-stock views that show how long inventory will last at current sales rates
• Automated purchase orders that reduce missed items and last-minute panic
• Vendor management tools that track credits, pricing rules, and order history in one place

Smart ordering is about knowing what to order, when to order it, and why.

3. Add Services To Stabilize Revenue

Pet retail sales fluctuate. Services bring consistency.

Your store experiences slow stretches. Summer months can be quiet. Post-holiday periods often feel flat. Services like grooming, daycare, and training help smooth those ups and downs.

They also tend to increase retail spending. Customers who bring their pets in for services are already engaged, already trusting your staff, and more likely to add food, treats, or accessories to their visit.

That said, pet services introduce new challenges:

• Scheduling conflicts
• No-shows
• Staff coordination
• Tracking time and commissions

Without the right systems, services can feel chaotic and stressful. But with grooming schedulers, online booking, and detailed customer and pet profiles, they become predictable and manageable.

You shouldn't add services casually. Add offerings intentionally, with systems in place that protect your staff's time and your customers' experience.

4. Build Loyalty That Feels Personal

Retention is where you have an advantage over the big chains.

Finding new customers costs more every year. Keeping existing ones is more reliable and far less stressful.

Loyalty is about recognition, such as:

• Remembering a dog's name when they walk in
• Knowing which food a customer always buys
• Pulling up purchase history without making someone repeat themselves

Here are a few tools that help build loyalty:

• Programs like Astro Loyalty formalize customer relationships
• Automated email campaigns help your store stay top of mind
• Review tools reinforce consumer trust 

The goal is for your pet store to stay top of mind and be easy to return to.

Related Read: 5 Best Pet Store Loyalty Programs: Retain Your Best Customers

5. Tighten Operations To Protect Margins

Small inefficiencies add up quickly. Some common operational drains include:

• Complicated registers that slow checkout and lead to mistakes
• Long training times that frustrate new staff
• Unclear permissions that create opportunities for loss

Tighter operations look like:

• A simple, one-screen register that reduces errors and speeds training
• Role-based permissions and time tracking that add accountability without micromanagement
• Accounting integrations that prevent end-of-month surprises and reduce manual entry mistakes

These operational details rarely feel urgent, but over time, they make a measurable difference in your profitability.

6. Plan Ahead Instead of Reacting

Many pet stores lose money through reaction, not lack of demand.

Here are signs you're reacting instead of planning:

• Ordering emotionally
• Discounting too quickly
• Scrambling when seasons change

Strong planning accounts for slow summers, busy winters, and vendor lead times well in advance. Reporting dashboards and forecasting tools make it possible for you to plan purchase orders eight to 12 weeks ahead instead of reacting week to week.

Planning creates breathing room. It allows you to make decisions calmly, based on data instead of stress.

Run a Profitable Pet Store With eTailPet

eTailPet is an all-in-one point of sale (POS) system built specifically for pet stores. It helps pet store owners:

• Order smarter: Create auto POs by days-of-stock and min/max levels to help keep cash off the shelf, while vendor credits and MAP controls protect margins.
• Add services simply: Offer built-in grooming scheduling and online booking to create steady, predictable revenue.
• Build real loyalty: In-house rewards, memberships, Astro Loyalty, email marketing, and reviews bring customers back without constant discounting.
• See what’s working: Clear reporting, permissions, and time tracking give you better control of daily operations.
• Sell everywhere: Support buy online, pickup in store (BOPIS) and local delivery from a mobile-friendly webshop.

Use our Build & Price tool today to design a custom POS solution for your store and get a quote.