Managing Pet Food Inventory: 8 Best Practices

Pet food is your store's biggest moneymaker — and your largest inventory expense. 

Americans spent over $65 billion on pet food and treats in 2024, making it one of the most lucrative categories in the pet industry.

It's also one of the trickiest to manage. Unlike toys or leashes that can sit on shelves indefinitely (unless there’s a recall), pet food is perishable. Dry kibble needs cool, dry storage. Fresh food requires refrigeration. Specialty diets have their own rules. One mistake in rotation or temperature control can turn your top-selling category into a major loss.

But with the right systems in place, managing pet food inventory is straightforward.

In this blog, we'll cover why proper pet food inventory management is a must, plus eight best practices for keeping your pet food fresh and your profits protected.

Let's jump in.

The Importance of Proper Pet Food Inventory Management

Pet food is a traffic driver. It’s the lure that gets customers into your pet shop. Customers come to your store specifically to buy it — and while they're there, they browse toys, treats, and accessories. When pet food inventory is mismanaged, you lose the customers who would’ve shopped the rest of your store.

Proper pet food inventory management matters because it:

• Protects your profit margins: Pet food is your highest-revenue category. Waste from expired or spoiled products cuts directly into your bottom line before you’ve even sold anything.
• Maintains customer trust: Pet owners depend on you for safe, fresh food. Poor inventory management breaks that trust and sends customers to competitors for food and anything else they need.
• Prevents health and safety issues: Improperly stored food can make pets sick. One recall or contamination incident can permanently damage your reputation.
• Keeps shelves stocked during peak demand: Smart inventory management ensures you have the right products when customers need them, not empty shelves or overstock gathering dust.
• Supports better cash flow: When you order based on actual sales data instead of guesswork, you tie up less money in slow-moving inventory.

When you track expiration dates, rotate stock correctly, and monitor storage conditions, you avoid these problems entirely. You know what's selling and what's sitting, so you can adjust orders accordingly.

8 Best Practices for Managing Pet Food Inventory

Pet food operates on thin profit margins — typically 25–35% for standard brands, compared to 40–60% for toys and accessories. Waste from spoilage or expired products cuts directly into those already slim margins. To help mitigate loss, here are tips to better manage pet food inventory. 

1. Stock Strategically, Not Exhaustively

Thousands of dry food brands exist on the market. Use your sales reports to identify which brands and formulas move consistently. Focus on stocking varieties that meet common needs like breed size (small, medium, large) and dietary requirements (sensitive stomach, skin allergies, grain-free).

Carrying a smaller, curated selection of brands means less money tied up in slow-moving inventory and fewer products expiring on your shelves.

Pro tip: For organic and wet food, be even more selective since they expire faster. Stock only your top two to three brands in the most popular flavors and order frequently in smaller batches.

Related Read: 10 Popular Pet Food Brands Your Customers Will Love

2. Build Relationships With Reliable Suppliers

Your suppliers play a huge role in how well your inventory management works. Good suppliers deliver quality products on time with plenty of shelf life left. Bad suppliers create constant headaches that drain your time and money.

Here's how to work with suppliers:

• Vet suppliers carefully: Check food safety records, delivery reliability, and industry reputation before committing to large orders. Look for online reviews, Better Business Bureau (BBB) ratings, and how long they've been in business.
• Negotiate return policies upfront: Lock in clear terms for damaged shipments, recalled products, and slow-moving inventory before placing your first order.
• Get shelf life guarantees in writing: Products should arrive with at least 75% of their total shelf life remaining. Short-dated inventory from suppliers puts you at an immediate disadvantage.
• Stay in touch with supplier reps: They often know about upcoming recalls, product changes, or supply chain issues before official announcements. These heads-up warnings help you prepare.
• Ask for frequent deliveries on perishables: Smaller, regular shipments reduce waste risk and tie up less cash in inventory.

3. Store Food Properly

Pet food needs temperature-controlled storage — and yes, that includes dry food. Heat and moisture speed up spoilage and attract pests.

Temperature requirements:

• Dry food and freeze-dried products: 50°F to 70°F
• Fresh pet food: 35°F to 40°F
• Frozen products: 0°F or below

Use these techniques for storing pet food:

• Keep away from heat sources: Store bags away from windows, radiators, and loading dock doors where temperature shifts.
• Use air-tight containers for opened packages: Transfer contents to sealed containers if you open bags for sampling or smaller portions.
• Elevate products: Use pallets or shelving to keep bags and containers at least six inches off the floor.
• Inspect for pest damage regularly: Check packages weekly for gnawing, holes, or insect activity.
• Install digital thermometers: Put digital thermometers with built-in alarms in every cooler and freezer. Check temperatures daily to catch potential equipment failures early.

If you find pest damage, pull those bags right away and check everything nearby. Toss the compromised products and call pest control before it spreads.

Pro tip: Schedule regular maintenance checks for your cooling equipment. Quarterly service catches problems before your system goes belly up and you're on the hook for thousands in emergency repairs and lost inventory.

4. Implement FIFO Rotation

First in, first out (FIFO) is the foundation of managing any perishable inventory. The first products that arrive at your store should be the first products sold.

Customers grab products from the front of shelves because they're easiest to reach. If you stock new inventory at the front, older products get pushed to the back where they sit untouched. Weeks or months pass, and suddenly you discover expired food that never had a chance to sell.

Make FIFO work with these practices:

• Make it store policy: Train every employee on FIFO from day one. When new shipments arrive, make sure they place products behind existing stock. Older inventory moves to the front where customers see it first.
• Conduct regular shelf checks: Even with strict policies, products get misplaced. Schedule weekly audits where a team member verifies everything is in proper rotation order.
• Add your own date labels: If supplier labels aren't clear or visible, mark boxes with "Received: [date]" using masking tape. This helps staff rotate correctly during restocking.

5. Track Expiration Dates With Automated Alerts

Expiration dates let you know when products need to leave your shelves. Miss them and you sell spoiled food.

Not all expiration dates mean the same thing, though. "Best by" suggests peak quality but doesn't necessarily mean the food is unsafe afterward. "Sell by" tells you when to pull products. "Use by" is when the manufacturer recommends customers finish the product.

Stay on top of dates with these systems:

• Set up tracking systems: Small stores can use spreadsheets with product names, arrival dates, and expiration dates. Larger stores need automated systems that flag approaching dates and alert managers.
• Schedule physical inspections: Digital systems aren't foolproof. Weekly manual checks catch products entered inaccurately or shoved to the back.
• Pull products early: Remove items 30 days before expiration so you have time to discount and clear them out.
• Inspect packaging condition: Torn bags or broken seals make food unsafe regardless of dates. Pull damaged products immediately.

Pro tip: Organic and specialty foods typically have shorter shelf lives because they have fewer preservatives. Watch dates closely and be upfront with customers about when products arrived and how much shelf life remains.

6. Use Batch Tracking for Fast Recall Response

When pet food recalls happen, every minute counts. Batch tracking makes it possible to identify and pull affected products in minutes instead of hours.

Every pet food shipment includes batch or lot numbers identifying which production run the products came from. When recalls occur, manufacturers specify which batches are affected.

Implement batch tracking with these steps:

• Record batch numbers at receiving: Link them to purchase orders so you have a clear trail from supplier to shelf.
• Tag shelves with batch information: Staff can verify batches during rotation without checking computer systems constantly.
• Use your point of sale (POS) system's features: Most modern POS systems include batch tracking. Entering batch numbers during receiving takes minutes but saves enormous time during recalls.
• Spot quality patterns: If multiple customers report issues with the same product, batch numbers show whether it's widespread or isolated.

Don't wait for customers to tell you about recalls. Here’s how to be proactive:

• Subscribe to FDA pet food recall alerts: The FDA maintains a pet food recall list and sends email notifications when new recalls are announced.
• Check manufacturer websites regularly: Some recalls get announced on company sites before they hit official channels.
• Join industry groups: Pet store associations and online forums often share recall news quickly.
• Have a response plan ready: Know exactly who pulls products, who contacts customers, and how you handle refunds or exchanges before a recall hits.

7. Use Sales Reports To Make Smarter Orders

Sales reports show you what's actually moving and what's collecting dust. You can't manage what you don't measure, and data beats guesswork every time.

Your POS system collects valuable data every day. Products that sell quickly versus items that sit for months. Seasonal shifts in demand. Profit margins by category. This info helps you order the right quantities at the right times.

Here’s how to put your sales data to work:

• Run inventory turnover reports: Weekly or monthly reports show which products move fast and which sit too long. Fast movers need higher stock levels. Slow movers need smaller orders.
• Track seasonal trends: Pet food sales shift with weather and holidays. Historical data helps you anticipate demand changes and adjust ordering.
• Identify dead stock early: Products that haven't sold in 60 to 90 days need aggressive discounting or should be returned to suppliers.
• Monitor profit margins: Not all pet food generates the same return. Focus purchasing on categories with better margins and customer demand.
• Set automatic reorder points: Base them on real sales data, not arbitrary numbers. Products selling five bags per week need different reorder points than items selling two per month.

Related Read: 9 Pet Store Metrics To Track: Beyond Just Sales Numbers

8. Train Your Team on Product-Specific Protocols

Different food types require different handling. Your team needs to understand these differences to avoid costly mistakes.

Build training programs with these steps:

• Create written procedures for each food type: Dry food, fresh food, and specialty items should each have documented handling instructions.
• Train immediately: New hires should learn inventory procedures on day one, not after they make mistakes.
• Assign clear ownership: One person should be responsible for fresh food rotation. Another handles dry food receiving. Accountability prevents tasks from falling through cracks.
• Use visual aids: Posters showing proper storage temperatures and rotation schedules reinforce training throughout your store.
• Review quarterly: People forget details over time. Regular refreshers keep everyone aligned on proper practices.

Related Read: Employee Retention for Pet Stores: 9 Strategies

Use eTailPet To Simplify Pet Food Inventory Management

Managing pet food inventory by hand takes forever and leaves room for human error. The right POS system automates tedious tasks so you can focus on running your business.

eTailPet is built specifically for pet stores, with features designed to handle the unique challenges of pet food inventory. Automated expiration date tracking flags products before they expire. Batch tracking integrates into receiving so you can pull recalled products in minutes. Sales reports show what's moving and what's not, helping you order smarter.

Pet food inventory doesn't have to be your biggest headache. With the right system in place, you protect your margins and spend less time putting out fires.

Build and price your custom eTailPet plan today to take control of your pet food inventory management.