Pets At Home will take “urgent and necessary action” to reverse the struggling petcare company’s fortunes, after its retail wing reported an £18.5m (84.1%) drop in pre-tax profits.
Losing share against a flat market, Pets At Home’s retail division has failed to take advantage of new trends for premium ‘advanced nutrition’ pet foods, being outflanked by new DTC entrants to the market.
Three years of decline in accessories sales has likewise contributed to a decline that saw sales in the division drop 2.3% to £679.9m in the 28 weeks to 9 October 2025.
Group-wide performance was buoyed by growth in the company’s veterinary business, up 6.7% in the half, which eased the company’s contraction to just 1.3% overall, though groupwide profits before tax fell 29.1% to £36.2m.
Interim CEO Ian Burke said it was “clear that urgent and necessary action is needed to meet both our own expectations and those of our investors”.
Burke replaced former CEO Lyssa McGowan in September after the company was forced to issue a surprise profit warning.
“I’ve spent time visiting over 100 Pet Care Centres and engaging with colleagues at all levels of the business to establish where the challenges are isolated, resulting in the implementation of a retail turnaround plan with four clear priorities of product, price, execution and cost. We are returning to our retailing roots to stabilise and rebuild momentum in our retail business, and to lay the foundations for a new CEO in due course,” said Burke.
“At the heart of our business remains 17,000 trusted and passionate colleagues and vet partners, and it’s through them that we will deliver future growth. I am grateful to them all for their unwavering dedication and energy and together we’ll ensure the business can thrive again.”
In its trading update, Pets At Home admitted it believed “the root cause” of its sales shortfall was product related. Focussing on advanced nutrition, the company will also aim for new product innovation and brand partnerships to reset its accessories offer.
The company has already invested £4m in price to improve its offer, and said it was “moving quickly” to address issues of execution.
It also plans to cut a further £20m in overheads to help mitigate costs of business.
Guidance for FY2026 profit before tax has been maintained from September’s downgrade at £90–£100m, with more than £80m of the total coming from the group’s vet business.
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