Grocers Have Big Profit Opportunities in Small Dogs
Key Takeaway
Small dog breeds have increased in numbers over the past decade or so.
Rise of the Small Dog
If you think about it, the rise of the small dog has been a long time coming.
“Around seven, eight years ago, small dogs overtook large and medium-sized breeds, and now make up over 50 percent of pet ownership, with no signs of stopping,” notes Jake Trainor, director of marketing for Secaucus, N.J.-based Freshpet, the first company in the United States to offer fresh all-natural refrigerated pet food. He adds that small-dog breeds have unique benefits for today’s dog owners.
“Small dogs certainly don’t eat the same amount of food daily compared with medium and large breeds, so consumers are opting for smaller, more affordable mouths to feed,” observes Trainor. “We also see pet parents moving into urban areas or downsizing from larger homes, so space is certainly a factor, as is older pet owners choosing pets that are easier to care for and handle.”
As if the practicality of caring for a smaller dog wasn’t enough, there’s also the increased humanization of pets in general which, according to Trainor, “includes a gravitation to higher-quality food made with natural ingredients, and products moving closer to real food.”
He continues: “Boomers and Millennials are important cohorts. In the case of Millennials, [they] see their pet as their first ‘child,’ [while] Boomers, with their kids leaving home, are now disproportionately spending more money on their pets.”
These factors have converged to give rise to the small-dog trend.
Key Takeaway
These breeds have physical and nutritional needs distinct from those of larger breeds.
Purina’s small-breed offerings include Purina One Small Bites and Purina Bella. Purina One Small Bites Beef & Rice Formula for Dogs features real beef as the first ingredient, blended with other high-quality protein sources to support strong muscles, including a healthy heart. The new formulas are made with smaller kibble and meaty morsels — perfect for smaller mouths. Purina Bella, meanwhile, is a full line of pampered meals inspired by small dogs.
“Our new products are innovative and typically lead or are on trend with current consumer desires in a way that is best for your pet,” says Toscano. “For us at Purina, it’s all about meeting the consumer’s needs whenever and wherever they choose to shop.”
Merchandising for Profitable Results
“Merchandising is the art of making it easier for consumers to navigate the store and find what they need,” says Mike Franco, a professional merchandiser who has worked with grocery brands big and small, “but the store uses merchandising to maximize its shelf space into the best profit ratio.”
Don’t make the mistake of assuming that small-dog owners will only be looking for one type of food. Consumers could be looking for wet food in individual servings, or dry food in bags. If there’s more than one dog in the home, bulk packaging might be attractive. Grocery locations that carry a variety of products can meet the varying needs of their consumers with little dogs.
Key Takeaway
Supermarkets can meet the varying needs of consumers with small dogs; for instance, they can make it easy to shop the aisles by grouping parent brands together and organizing product by wet versus dry foods.
It might be tempting to create a small-dog section, but Franco warns that most grocery stores don’t have that kind of real estate.
“Specialty stores have a better change with that setup,” he notes. “When you’ve got 9,000 square feet just for pet products, you can afford to separate the small dogs into their own sections, but if you’re working with just an aisle, or maybe two, you have to prioritize your space.”
Instead, focus on making it easy to shop the aisles for the best merchandising effect. Go for brand recognition by grouping parent brands together, but also organize by wet versus dry. In most cases, it’s a good strategy to highlight the wet food over the dry food, because consumers spend more on the wet-food SKUs, which is often easier for dogs with smaller mouths to eat.
“Education can bridge the gap between what a consumer thought they wanted when they walked in the door to what they ultimately put in their cart,” reminds Franco. Many consumers use the signage and print collateral that stores provide to make those final purchase decisions. These pieces are a good investment in a store’s efforts to move consumers through the path to purchase.
According to Garcia, a breeder with more than 10 years’ experience with small dogs and the people who love them, it all comes down to that personal experience.
“They’re such special little creatures, you know?” she says. “If I walk into a store and it seems like they get that, they’ve made a sale.”