Pet Grooming and Boarding: A Macroeconomic Perspective
647 Words3 Pages
Pet Grooming and Boarding
SIC code: 0752
NAICS code: 812910
Currently, much of the global economy is continuing to recover from a devastating financial crisis. The financial crisis in 2008 resulted in a massive erosion of consumer confidence and wealth. Home values plummeted and unemployment increased dramatically. The impact of the crisis directly impacted the pet grooming and boarding industry. First, consumers curtailed discretionary spending, fearful of the future. In addition, many individuals lost their homes which housed many of their pets. Finally, those who lost their jobs could no longer afford the luxury provided by the pet grooming industry. As such, the industry declined substantially during the period from 2008-2010. The pet industry continues to prove its resiliency. Market research company WSL indicates that 81% of respondents are spending the same amount or more on their pets despite the tough economic times that prevailed in 2008. This indicates that the consumer is now feeling more confident about his or her future prospects. In addition, the consumer also has more income by which to spend on discretionary items. The recession did slow down the rate of growth of purchases, but revenue expansion remained strongly positive throughout the worst of the crisis. This was due primarily to expense and cost cutting initiatives from many large companies.
Currently the pet industry in the United States and many other countries is