Reducing Operating Costs for Pet Retailers: 8 Strategies

Did you know businesses lose 20–30% of revenue annually due to operational inefficiencies? In pet retail, wasting up to 30% of your revenue can significantly impact your bottom line. While expenses like rent, payroll, inventory, and marketing are necessary, they aren’t fixed costs. Manual processes and outdated systems can drain your profits, with 70% of retailers losing at least 5% of their margin due to poor operations.

As inefficiencies accumulate, your team spends more time on repetitive tasks. Counting bags of dog food, calling suppliers, or searching for misplaced cat toys distracts from growing your business. The good news? Smarter tools and better workflows can reduce costs and boost efficiency.

In this blog, we’ll share eight strategies to lower operating costs without sacrificing customer service or pet care.

Let’s break it down.

Start by Finding Operational Inefficiencies

Before you can cut costs, you need to know where your team is spending time and where money is slipping through the cracks. Start by tracking everyday routines to identify what’s manual, repetitive, or inconsistent.

Examples of what to look at:

How long opening and closing tasks take
How inventory counts are done, and how often
How purchase orders are created and submitted
How staff request time off or swap shifts
How long it takes to find items in the stockroom or update pricing
How customers book services, and how many calls it takes

A modern point of sale (POS) system designed for pet supply stores can give you visibility into these day-to-day operations. Once you’ve identified the bottlenecks, it’s easier to make targeted improvements. The strategies below can help you cut unnecessary costs, save your team time, and create a more efficient, profitable store.

1. Fix Your Inventory Strategy

43% of small businesses either don’t track inventory at all or use outdated manual systems. Poor inventory management leads to overstocked shelves, wasted products, and missed opportunities. If you’re reordering products that are still in stock or forgetting to replenish top sellers, you’re losing money on both ends.

A comprehensive POS system lets you scan products in and out — like 25-pound bags of dog food — and track expiration dates on supplements. You can also monitor how quickly seasonal items are selling, like flea and tick treatments. With real-time inventory tracking, you’re guaranteed to have the right products at the right time.

2. Buy Smarter, Not Just Cheaper

If you’re noticing inventory costs creeping up, it doesn’t always mean your suppliers are raising prices. If you think, “Maybe I just need to find cheaper products,” take a step back. The real issue might be that you’re not buying pet supplies at the right time.

Overspending often comes down to bad timing or poor forecasting — not inflated prices. For example, ordering a full restock of pet sweaters and winter gear in early spring can tie up cash just when customers are looking for flea and tick treatments.

Instead of buying on instinct, let your sales data shape your purchasing strategy. Know which brands are moving, which ones aren’t, and how demand shifts with the seasons.

With detailed reporting, trend analysis, and a built-in vendor catalog, a great POS system makes it simple to buy just in time to meet demand. This means less time spent chasing pricing and more confidence that your orders match what’s really selling. Bonus: A single vendor catalog also makes it easier to track recalls, spot supplier promotions, and avoid backorders.

3. Cut Back on Labor Costs

Labor is one of your biggest expenses — and high turnover only makes it worse. The average retail employee turnover rate is around 60%, and replacing a single employee costs around $4,700. This can be up to 20% of a typical retail salary. In short, retention pays.

Instead of slashing hours, focus on helping your current team become more efficient and feel supported. Use your POS system to identify peak times and build smarter schedules. For example, if weekday mornings are consistently slow, you don’t need your full team on the floor.

Simplify time tracking by letting employees clock in and out directly through your POS system. Create a clear process for time-off requests — including how much notice is needed and whether requests need to come via email, a shared form, or another method. Share schedules with enough lead time to allow for shift swaps and questions.

And don’t underestimate morale. Happy employees who feel heard are more likely to show up on time, deliver great customer service, and offer ideas that make your store run better. A positive, organized environment leads to less turnover — and fewer hiring costs eating into your bottom line.

4. Automate Repetitive Tasks

Manual tasks like building purchase orders, managing promotions, and tracking inventory take up a lot of your team’s time. Employees spend over 60% of their work hours on repetitive manual tasks — the equivalent of up to 19 workdays per year. No wonder 90% of employees say they’re stuck on tasks that don’t really move the needle. This is one factor contributing to the high employee turnover.

A good POS system can help automate these tasks, saving time and reducing mistakes. With automation, you can:

Trigger purchase orders when stock runs low.
Apply discounts and loyalty rewards at checkout.
Send customer reminders for repeat purchases like food, litter, or flea meds.

By automating routine tasks, you can keep your operations running smoothly while letting your staff focus on what’s most important — like customer service and driving sales.

5. Build a Website With Online Booking and E-Commerce

Your website can be one of your most efficient tools. Instead of spending time answering phone calls all day about grooming appointments or product availability, you can let customers get what they need online.

A solid pet store POS system includes an integrated website builder, so you can launch your site quickly — no expensive web developers needed.

With a website that includes scheduling and e-commerce, you allow customers to:

Book grooming or training services directly from your site.
Shop for food, toys, or supplements anytime, day or night.
Find hours, FAQs, and product info without tying up your team.

This reduces phone traffic, improves customer convenience, and opens up a new revenue stream — while saving you time and effort.

6. Rethink Your Marketing Spend

Stop spending on marketing that doesn’t drive sales. Focus on the places where customers engage with your brand most. Think social media, email, or in-store visits, and target your efforts there.

Luckily, you can use a comprehensive POS system to track customer profiles and purchase history, which gives you the data needed to create targeted campaigns. For example, if James regularly books grooming appointments for his golden retriever, you can offer him discounts on grooming packages or introduce him to a loyalty program. If Margaret buys cat food every month, sending her promotions for dog training classes might miss the mark.

Your POS system can also automate many of these marketing tasks — like sending out birthday coupons, requesting reviews after a purchase, or offering personalized discounts based on past purchases.

These targeted, automated campaigns are more cost-effective than traditional mass marketing efforts.

7. Reduce Operational Waste

Small waste accumulates quickly — paper receipts, duplicate signage, misplaced stock, and unsellable returns all eat away at your profits. Most of it stems from clunky systems or inconsistent processes.

Here are some ways you can reduce operational waste:

Switch to digital receipts.
Use POS-connected labels that update automatically with pricing.
Organize stock by product type, brand, and supplier.
Add barcode scanners to speed up checkouts and inventory counts.

And when waste does happen — like returns you can’t resell or food that’s nearing its expiration date — look for ways to put it to good use. Can it be donated to a local animal shelter? Can packaging materials be reused or recycled?

Streamlined operations not only reduce costs but also help you run more sustainably and build goodwill in your community. This results in fewer mistakes, fewer expenses, and less waste. Every little bit adds up.

8. Consider Offering Subscription Services

Do you have customers who buy the same pet supplies regularly — like food, litter, or supplements? A subscription model makes it easy for them and more predictable for you.

Subscriptions help reduce ordering guesswork and create a steady stream of recurring revenue. They’re also perfect for busy pet parents, those with limited mobility, or anyone who values convenience.

Pet store–friendly subscription ideas include:

Auto-shipped dog or cat food every 4–6 weeks
Monthly treat or toy boxes based on pet type or size
Scheduled deliveries for flea, tick, or heartworm meds

A solid POS system built for pet supply stores supports recurring orders or services, so customers can sign up once and stay on schedule.

Try these strategies to reduce operating costs in your pet store. You don’t have to implement everything at once — start with one area, track the impact, and build from there. Focus on the biggest inefficiencies first, and compare any changes to your baseline to make sure they’re truly working. Once you see results, move on to the next area where you can simplify operations and cut costs without compromising on service or care.

eTailPet: The POS System That Reduces Operational Costs

You likely notice that adopting new systems and practices requires having the right tools. eTailPet is an all-in-one POS system built specifically for pet retailers. Our software is designed to help you reduce costs by automating key tasks and improving efficiency across your operations.

With eTailPet, you can:

Automate inventory management and set low-stock alerts.
Generate purchase orders automatically, saving time and reducing errors.
Track employee schedules and hours directly within the system.
Speed up checkouts and stock counts with barcode scanning.
Access real-time, detailed reports to monitor sales by brand, vendor, or category.
Manage grooming appointments and retail operations all from one place.
Launch loyalty programs and targeted marketing campaigns to drive sales.

Schedule a free demo to learn how eTailPet helps you run your pet store business smarter and more profitably without the guesswork.