CEO Spotlight: Chris Rowland, Pet Supplies Plus

For Pet Supplies Plus, it’s all about convenience and service. The third-largest specialty player in a fast-growing business that has proven resilient even in hard times, the privately held retailer has found a sweet spot amid bigger box competitors with its friendly neighborhood-store positioning.



Chris Rowland joined Pet Supplies Plus, which is based in Livonia, Michigan, in 2012 as senior VP of operations, and was promoted to CEO in 2014. The seasoned pet industry veteran previously was with PetSmart, where he held various executive positions from 1996 to 2011, including serving as president of PetSmart Canada, and as VP of U.S. operations.



Pet Supplies Plus is owned by private equity group Irving Place Capital and based in Livonia, Michigan. It operates 350 stores across 27 states, with a mix of corporate and franchised locations. Store offer a wide selection of pet food, treats and hard goods, with a growing focus on natural food products.



Chain Store Age editor Marianne Wilson spoke with Rowland about the company, which has set a goal of opening more than 200 franchise locations by 2020.



How big is the pet supplies industry in terms of sales?

The pet supplies industry is a $60 billion per year industry. It hasn’t had a flat or negative year in more than 20 years. In addition, it has a compound annual growth rate of about 4%.



How is Pet Supplies Plus positioned in the market?

Pet Supplies Plus is a neighborhood pet store that offers better pricing, services and convenience than our competitors. We also offer a larger array of natural premium products that cannot be distributed in the large format stores.



Tell us about the stores.

The average Pet Supplies Plus store is about 7,500 sq. ft., carries about 8,000 skus and has a welcoming atmosphere and friendly customer service representatives. All our stores have a self-service dog wash, sell fish and a wide selection of lizards and other reptiles, and offer vet services through a relationship with VIP Pet Care. We also offer grooming in participating stores.



Our stores are modeled after a grocery store. Each location is tailored to the specific neighborhood, so no two stores are exactly alike.



We are widening aisles at our new stores, and also adding dog treats and toys in the front to make sure the pets are entertained while their owners shop.



What is the real estate strategy?

We target neighborhood shopping centers with a good grocery anchor.



Are all Pet Supplies stores franchised?

Approximately 50% of Pet Supplies Plus locations are franchised stores and the remainder are operated by the company.



Is the plan to open both corporate and franchised stores?

We plan on opening both company and franchise stores moving forward, with the weight of that strategy being on franchisee-focused growth. For example, in early June we have three franchise locations opening in Minnesota, Illinois and Texas, along with two corporate stores opening the same weekend in New York and New Jersey.



What do you look for in a franchisee?

Above all, we look for people who love pets. We want to make sure that our franchisees share the passion that the company does for pets and our neighbors that love their pets, which are truly part of their families. In addition, we look for people with strong financials, those who can follow our process and prospective franchisees who like to lead others.



How many locations will the company open in 2016?

We are opening 45 locations in 2016, with 30 franchised locations and 15 company-owned stores.



Are there any special regions or areas being targeted for growth?

California is a market that we just entered through an acquisition in December 2015. We already sold our first franchise outside of Los Angeles with a scheduled opening date during the fourth quarter of 2016. However, we have lots of territory available to work with throughout the United States.



Does Pet Supplies Plus have a digital strategy?

Our digital strategy is to provide a great experience and enough information on our site to drive people to our stores. By next year, our neighbors will be able to browse our site, provide reviews and feedback on all Pet Supplies Plus products and buy the products online for in-store pickup.