Inflation’s Impact on Pet Stores: 6 Strategies To Stay Competitive

Have you noticed the increased cost of essential pet supplies for your pet store? That’s because inflation is still on the rise.

In recent years, the pet industry has faced significant financial pressures due to rising costs. This trend is influenced by various factors that have directly impacted the pricing of essential pet goods and services.

It’s important for pet store owners like you to notice how these changes ripple through your business and community — and understanding this helps you make smart business decisions during national (and global) economic challenges.

In this blog, we’ll address the current impact that inflation has on the pet industry, plus six strategies to help your pet store continue to succeed.

Let’s get started.

Rising Costs in the Pet Industry

Prices are increasing across the board, with noticeable effects in the pet industry. According to the February 2025 Consumer Price Index (CPI) report, there are notable changes in costs associated with pet products and services. Pet food and treats experienced an annual rise of 1.3%. Meanwhile, the purchase of pets, supplies, and accessories decreased by 1% over the year.

Pet services, including veterinary services, experience more significant inflationary pressures. The CPI report suggests an annual escalation of 6.6% in service costs. Veterinarian services, specifically, show a substantial upward trend, underscoring rising service-related expenses.

Let’s say your pet store generates $200,000 annually. A significant portion of this revenue — $50,000 — is spent on stocking pet food and treats. With a 1.3% increase in these costs due to inflation, you see an additional expense of $650. This brings your total cost for food and treats to $50,650 for the year.

The increasing expenses means you need to be proactive in understanding and responding to these pressures, so you can maintain your profitability. Keeping a close eye on these trends ensures you stay competitive in the pet industry.

Impact on Pet Owners

Due to these increases, you likely see that your nonnegotiable pet products like pet food have increased, while pet accessories, toys, and some services like grooming have slightly decreased. In the current state of the economy, pet owners face high financial strain.

This leads pet owners to:

Cut back on pet care: High costs may force pet owners to limit spending on nonessential items, like toys or grooming services, which can impact pet well-being.
Reconsider pet ownership: The escalating costs of pet supplies and veterinary care may cause potential pet owners to delay adoption, or reconsider their ability to afford pet ownership long term.
Prioritize the essentials: Owners may prioritize essential items like food and medications over other purchases, impacting sales of extra pet items.

Pet owners need to purchase the necessities for their pets, while they cut back on the nonessential items at your store. Taylor Harnois, general manager of eTailPet, has seen these challenges with pet store owners. “We’ve seen a bit of a pullback on accessories and toys, but what has remained consistent and strong are some of the nonnegotiables like pet food,” he said.

The bottom line: The impact the economy has on pet owners changes the way you need to operate your business.

Challenges for Pet Store Owners

Inflation has plenty of challenges — you’re pressured to manage rising costs while maintaining efficiency. This can become difficult, which may cause you to run your pet store a bit differently.

Here are some common pet store challenges:

Inventory management: Ensure that inventory levels match consumer demand while avoiding overstock or stockouts.
Operational efficiency: Manage operational costs effectively and adopt technology solutions to simplify processes, reduce manual labor, and improve accuracy in inventory management.
Customer retention: Maintain a loyal customer base with innovative customer engagement strategies, like loyalty programs and personalized services.
Market competition: Compete with larger retailers who might offer lower prices or broader selections. Small pet stores need to emphasize their unique value propositions to customers.
Technological adaptation: Adapt quickly to new technologies that improve business operations without overwhelming staff.

By understanding these impacts and challenges, you can better strategize to maintain profitability and community engagement in the face of economic difficulties.

6 Strategies for Pet Store Owners To Mitigate Inflation Effects

To adapt to these challenges, consider implementing the following strategies:

Optimize inventory management: Use a point of sale (POS) system to track inventory levels and use a full product universe (product information, descriptions, and images), and sync inventory across channels.
Offer a variety of essential products: Sell a variety of food brands and products, so you can pull in more customers and meet their needs.
Personalize each interaction: Give your customers recommendations based on their pets’ breed, behaviors, and health concerns.
Implement customer loyalty programs: Implement a loyalty program to encourage repeat purchases and build a stable customer base.
Continue customer outreach and marketing: Reach out and market to customers to ensure they value your pet store.
Stay informed: Consult industry reports and economic forecasts regularly to stay ahead of trends. This knowledge guides strategic decisions and helps you remain competitive in a fluctuating market.

To address these challenges, pet store owners like you must adopt solid strategies. Efficient inventory management using modern POS systems can help optimize stock levels and reduce unnecessary expenses — and by enhancing customer loyalty programs, your pet store can maintain a stable customer base, despite these economic pressures.

Prioritizing a personal experience for your customers is something that Harnois emphasizes to help you stand out. It’s important to train your employees to personalize each interaction and give recommendations to customers. He said, “When staff is informed enough to know what kind of recommendations to make based on breed, behaviors, and health concerns, stores… do very well.”

Navigate Inflation Pet Expenses With eTailPet

Navigating the rising costs and challenges in the pet industry is tough, but eTailPet is an all-in-one POS solution designed to support your business with industry-specific tools. Our inventory management system ensures that your stock is always up to date, whether it sells online or in store. This means you never have to worry about selling items you don’t have.

Another one of our standout features is the product universe. It’s packed with everything you need, like product details, guaranteed analysis, ingredients, images, and descriptions. Our product universe allows you to focus on your customers — without worrying about entering data manually.

We also offer an integrated loyalty program with Astro Loyalty to keep your customers coming back, plus automated marketing tools to help you reach out to them effortlessly.

Schedule a demo with us today to explore how we can help your pet store thrive — even in challenging times.