PetSmart (PETM) is the largest pet supply store in North America, operating 1,149 retail stores in North America, with the average store size between 18,000 and 27,500 square feet.^[1] PetSmart sells pet supplies and offers pet services (such as grooming), in addition to selling small pets. However, this lucrative retail niche has not gone unnoticed by supermarkets and big-box retailers such as Wal-Mart Stores (WMT) and Target (TGT), many of whom offer an increasing variety of pet food and supplies.

PetSmart's merchandising includes a breadth of products (about 10,500 distinct items) ranging from brand names as well as an its own private brands. PetSmart has been expanding its pet service offerings in the current decade, growing service revenues to over 10% of total revenues. These services not only earn a high margin, but also differentiate PetSmart from its competitors. Another method of differentiation is the inclusion of full-service veterinary hospitals in over 69% of PetSmart stores through a partnership with Medical Management International. Finally, despite the U.S. recession in 2009, PetSmart's net sales and same store sales grew during the year, as pet owners continued to spend on their pets in times of economic hardship.

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