Due to the downturn in the economy people have been buying less expensive pet food, competition in the pet products sector is increasing, causing retailers like PetSmart concern.
“In recent weeks, we have become concerned with consumer trade down in pet food as the macro continues to deteriorate and steep inflationary price increases cut into consumers’ shrinking budgets,” Nemer,who is an analyst for Thomas Weisel Partners, wrote in a client note.
Nemer said pet food prices have risen 14 percent from a year ago, which is cutting into consumers’ “shrinking” budgets. Nemer also said major pet food manufacturers are reporting a shift in demand to grocery brands from specialty brands.
This article is from Forbes and focuses on the stock price of PetSmart, but I found it interesting and was curious what Dogsters thought.
Has anyone changed their dog’s food lately due to the economy? Or, have you kept the same food and made other cutbacks? Give me a bark.
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