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WWW.IBISWORLD.

COM

Pet Stores in the US February 2012

IBISWorld Industry Report 45391

Pet Stores in the US


February 2012

Caitlin Moldvay

About this Industry

16 International Trade

Industry Denition

17 Business Locations

Main Activities

Similar Industries

19 Competitive Landscape

31 Industry Data

Additional Resources

19 Market Share Concentration

31 Annual Change

19 Key Success Factors

31 Key Ratios

Industry at a Glance

Industry Performance

22 Barriers to Entry

Executive Summary

23 Industry Globalization

Key External Drivers

Current Performance

24 Major Companies

Industry Outlook

24 PetSmart Inc.

30 Industry Assistance

31 Key Statistics

20 Cost Structure Benchmarks


21 Basis of Competition

11 Industry Life Cycle

25 PETCO Animal Supplies Inc.

13 Products & Markets

28 Operating Conditions

13 Supply Chain

28 Capital Intensity

13 Products & Services

29 Technology & Systems

14 Demand Determinants

29 Revenue Volatility

15 Major Markets

32 Jargon & Glossary

30 Regulation & Policy

www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

About this Industry


Industry Denition

Main Activities

The primary activities of this industry are


Retailing pets
Retailing pet food and supplies
Providing pet grooming and boarding services

The major products and services in this industry are


Live animals
Pet food
Pet services
Pet supplies

Similar Industries

54194 Veterinary Services in the US


Establishments in this industry provides veterinary services.
81291 Pet Grooming & Boarding in the US
Operators in this industry provide pet grooming and boarding services.
45411a E-Commerce & Online Auctions in the US
Businesses in this industry retails pet foods and pet supplies via the internet.
45411b Mail Order in the US
Establishments in this industry retail pet foods and pet supplies via mail-order or catalogs.

Additional Resources

For additional information on this industry


www.americanpetproducts.org/
American Pet Products Association
www.petage.com
Pet Age Magazine
www.petbusiness.com
Pet Business
www.hsus.org
The Humane Society of the United States

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

Industry at a Glance
Pet Stores in 2012

Key Statistics
Snapshot

Revenue

Annual Growth 07-12

Annual Growth 12-17

Prot

Wages

Businesses

$14.7bn 2.8%

3.8%
$634.1m $1.9bn 13,730
Number of pets (cats and dogs)

Revenue vs. employment growth

Market Share

200

190

180

Millions

210

% change

10

170

160

150

Year 04

06

Revenue

08

10

12

14

16

18

140

Year 03

05

07

09

11

13

15

17

Employment
SOURCE: WWW.IBISWORLD.COM

p. 24

Products and services segmentation (2012)

Key External Drivers

10.2%

Number of pets
(cats and dogs)

4.5%

Live animals

Pet services

Per capita disposable


income
External competition
Number of households

58%

27.3%

Pet food

Pet supplies

p. 4
SOURCE: WWW.IBISWORLD.COM
SOURCE: WWW.IBISWORLD.COM

Industry Structure

Life Cycle Stage


Revenue Volatility
Capital Intensity

Growth

Regulation Level

Medium

Low

Technology Change

Medium

Low

Barriers to Entry

Medium

Industry Assistance

None

Industry Globalization

Concentration Level

High

Competition Level

FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 31

Low
Medium

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

Industry Performance

Executive Summary | Key External Drivers | Current Performance


Industry Outlook | Life Cycle Stage
Executive
Summary

Key External Drivers

Number of pets (cats and dogs)

External competition

Per capita disposable income

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

Industry Performance

Key External Drivers


continued

Number of households

Per capita disposable income

Number of pets (cats and dogs)


210

200
2

% change

Millions

190
180
170
160

0
2

150
140

Year 03

05

07

09

11

13

15

17

Year

05

07

09

11

13

15

17

SOURCE: WWW.IBISWORLD.COM

Current
Performance

Growth during the


recession

WWW.IBISWORLD.COM

Industry Performance

Growth during the


recession
continued

Part of the family

Pet Stores in the US February 2012

WWW.IBISWORLD.COM

Industry Performance

Product innovation

Competition from
bigger stores

Pet Stores in the US February 2012

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

Industry Performance

Competition from
bigger stores
continued

Industry revenue
10
8

% change

Industry
Outlook

6
4
2
0

Year 04

06

08

10

12

14

16

18

SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Industry Performance

Industry Outlook
continued

Premium products will


remain popular

Changing
competition

Pet Stores in the US February 2012

WWW.IBISWORLD.COM

Industry Performance

Changing
competition
continued

Pet Stores in the US February 2012

10

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

11

Industry Performance

% Growth of prot/GDP

Life Cycle Stage

Maturity

30

Quality Growth

Company
consolidation;
level of economic
importance stable

25

High growth in economic


importance; weaker companies
close down; developed
technology and markets

Key Features of a Growth Industry


Revenue grows faster than the economy
Many new companies enter the market
Rapid technology & process change
Growing customer acceptance of product
Rapid introduction of products & brands

20

15

Quantity Growth

Many new companies;


minor growth in economic
importance; substantial
technology change

10

E-Commerce & Online Auctions


5

Pet Stores

Veterinary Services
Mail Order

Shake-out

Decline

Crash or Grow?

10
10

Toy, Doll & Game Manufacturing

Shake-out

Animal Food Production

Potential Hidden Gems

Time Wasters

Future Industries
5

10

Hobby Industries

15

20

25

30

% Growth of establishments
SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Industry Performance

Industry Life Cycle


This industry
is Growing

Pet Stores in the US February 2012

12

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

13

Products & Markets

Supply Chain | Products & Services | Demand Determinants


Major Markets | International Trade | Business Locations

Supply Chain

KEY BUYING INDUSTRIES


99

Consumers in the US
The Pet Stores industry relies on consumers to purchase pet products and to utilize industry
services.

KEY SELLING INDUSTRIES


31111
33993

Toy, Doll & Game Manufacturing in the US


This industry supplies pet toys and accessories to industry operators.

54194

Products & Services

Animal Food Production in the US


This industry supplies pet stores with a vast array of pet food.

Veterinary Services in the US


This industry provides veterinary care services such as vaccinations to industry operators.

Products and services segmentation (2012)

10.2%

Pet services

4.5%

Live animals

58%

27.3%

Pet food

Pet supplies

Total $14.7bn

SOURCE: WWW.IBISWORLD.COM

Pet food

Pet supplies

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

14

Products & Markets

Products & Services


continued

Pet ownership segmentation in the US


(2011)
Animal

Share of total pets (%)

Birds
Cats
Dogs
Horse
Freshwater Fish
Saltwater Fish
Reptiles
Small Animals

4.3
22.9
20.7
2.1
40.0
2.3
3.4
4.2
SOURCE: AMERICAN PET PRODUCTS ASSOCIATION

Live animal purchases

Services

Demand
Determinants

Pet ownership

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Pet Stores in the US February 2012

15

Products & Markets

Demand
Determinants
continued

Demographics and lifestyle

Income

Major Markets

Major market segmentation (2012)

7%

10%

Consumers over
65 years old

Consumers under
25 years old

28%

Consumers 45 to
54 years old

13%

Consumers 55 to
64 years old

18%

Total $14.7bn

Consumers 25 to
34 years old

24%

Consumers 35 to
44 years old
SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Products & Markets

Major Markets
continued

International Trade

Pet Stores in the US February 2012

16

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Pet Stores in the US February 2012

17

Products & Markets


Business Locations 2012

West
New
England

AK
0.2

WA

Rocky
Mountains
ID

2.0

West NV
0.9

1.7

SD
0.2

WY

0.5

MN

0.2

0.3

OR

Great
Lakes

ND

MT

3.1

Plains

CO

0.7

KY

0.9

OK
0.9

NC
2.5

TN

AZ

NM

2.2

0.6

Southwest
TX
5.6

HI
0.4

Additional States (as marked on map)


1 VT

2 NH

3 MA

SC

Southeast

5 CT

6 NJ

7 DE

8 MD

1.5

0.7

3.3

2.0

0.5

0.5

1.9

0.5

MS

AL
1.0

1.3

GA
2.2

0.4

LA
1.0

FL
7.7

Establishments (%)

4 RI

0.3

AR

0.3

1.5

13.2

WV VA
2.7

0.7

1.9

CA

West

3.9

MO

KS

2.6

OH

2.0

4.1

4.4

IN

IL

0.5

UT

PA

3.5

0.9

0.6

1 2
3
NY
7.4
5 4

MI

1.9

IA

NE

0.3

WI

ME

MidAtlantic

9 DC
0.1

Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

18

Products & Markets

Business Locations

Establishments vs. population


30

20

Southeast

10

Southwest

Southeast

Rocky Mountains

Plains

New England

Mid-Atlantic

Great Lakes

West

Establishments
Population
SOURCE: WWW.IBISWORLD.COM

West

Great Lakes

Mid-Atlantic

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

19

Competitive Landscape

Market Share Concentration | Key Success Factors | Cost Structure Benchmarks


Basis of Competition | Barriers to Entry | Industry Globalization
Market Share
Concentration

Companies by employment size


No. of employees
0-4
5-9
10-19
20-99
100-499
500+

Level

Concentration in
this industry is High

Statistics of US Businesses

Key Success Factors


IBISWorld identies
250 Key Success
Factors for a
business. The most
important for this
industry are:

Share (%)
57.4
23.2
13.0
5.6
0.6
0.2
SOURCE: US CENSUS BUREAU

Attractive product presentation

Economies of scope
Experienced work force

Proximity to key markets

Effective quality control

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Pet Stores in the US February 2012

20

Competitive Landscape

Cost Structure
Benchmarks

Sector vs. Industry Costs


Average Costs of
all Industries in
sector (2012)

Industry Costs
(2012)

3.7
13.7

4.3
13.1

65.8

70.3

100

Percentage of revenue

80

60

Prot
Wages
Purchases
Depreciation
Marketing
Rent & Utilities
Other

40

20

1.6

4.6
9.2

1.5

1.6 4.0
6.7
SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

Competitive Landscape

Cost Structure
Benchmarks
continued

Basis of Competition
Level & Trend

Competition in
this industry is
Medium and the
trend is Increasing

Internal

21

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

22

Competitive Landscape

Basis of Competition
continued

External

Barriers to Entry
Level & Trend

Barriers to Entry
in this industry are
Medium and Steady

Barriers to Entry checklist


Competition
Concentration
Life Cycle Stage
Capital Intensity
Technology Change
Regulation & Policy
Industry Assistance

Level
Medium
High
Growth
Low
Medium
Medium
None
SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Competitive Landscape

Barriers to Entry
continued

Industry
Globalization
Level & Trend

Globalization in this
industry is Low and
the trend is Steady

Pet Stores in the US February 2012

23

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

24

Major Companies

PetSmart Inc. | PETCO Animal Supplies Inc. | Other Companies

Major players
(Market share)

PETCO Animal Supplies Inc. 20.7%

35.0%
Other

PetSmart Inc. 44.3%

Player Performance
PetSmart Inc.
Market share: 44.3%

Financial performance

SOURCE: WWW.IBISWORLD.COM

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Pet Stores in the US February 2012

25

Major Companies

Player Performance
continued

PetSmart Inc. nancial performance


Year*

Revenue
($ million)

(% change)

Net Income
($ million)

(% change)

Employees

(% change)

2007

4,672.7

10.4

258.7

39.8

43,000

N/C

2008

5,065.3

8.4

192.7

-25.5

46,000

7.0

2009

5,336.4

5.4

198.3

2.9

45,000

-2.2

2010

5,693.8

6.7

239.9

21.0

47,000

4.4

2011*

6,103.8

7.2

301.8

25.8

47,500

1.1

2012*

6,531.0

7.0

348.3

15.4

48,500

2.1

*Estimates

Player Performance
PETCO Animal
Supplies Inc.
Market share: 20.7%

SOURCE: ANNUAL REPORT AND IBISWORLD

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Pet Stores in the US February 2012

26

Major Companies

Player Performance
continued
Financial performance

Petco Animal Supplies Inc. nancial performance*


Year

Revenue
($ million)

(% change)

Employees

(% change)

2007

2,400

9.1

20,100

2.7

2008

2,550

6.3

22,000

9.5

2009

2,700

5.9

23,200

5.5

2010

2,800

3.7

23,500

1.3

2011*

2,925

4.5

24,400

3.8

2012*

3,050

4.3

25,500

4.5

*Estimates

Other Companies

SOURCE: FORBES.COM

Pet Supplies Plus

Estimated market share: 3.6%

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

Major Companies

Other Companies
continued

Pet Food Express

Estimated market share: Less than 1.0%

Pet Supermarket Inc.

Estimated market share: 1.6%

27

WWW.IBISWORLD.COM

28

Pet Stores in the US February 2012

Operating Conditions

Capital Intensity | Technology & Systems | Revenue Volatility


Regulation & Policy | Industry Assistance
Capital Intensity

Capital intensity

Capital units per labor unit

Level

0.5

The level of capital


intensity is Low

0.4
0.3
0.2
0.1
0.0

Economy

Retail Trade

Pet Stores

Dotted line shows a high level of capital intensity


SOURCE: WWW.IBISWORLD.COM

Tools of the Trade: Growth Strategies for Success


Investment Economy

Recreation, Personal Services,


Health and Education. Firms
benet from personal wealth so
stable macroeconomic conditions
are imperative. Brand awareness
and niche labor skills are key to
product differentiation.

Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
rms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.

Traditional Service Economy


Wholesale and Retail. Reliant
on labor rather than capital to
sell goods. Functions cannot
be outsourced therefore rms
must use new technology
or improve staff training to
increase revenue growth.

Pet Stores
Veterinary
Services

Capital Intensive

Labor Intensive

New Age Economy

E-Commerce & Online Auctions

Mail Order

Animal Food Production

Toy, Doll & Game Manufacturing

Change in Share of the Economy

Old Economy
Agriculture and Manufacturing.
Traded goods can be produced
using cheap labor abroad.
To expand rms must merge
or acquire others to exploit
economies of scale, or specialize
in niche, high-value products.
SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

29

Operating Conditions

Capital Intensity
continued

Technology
& Systems
Level

The level of
Technology Change
is Medium

Revenue Volatility
Level

The level of
Volatility is Low

When a rm makes poor


investment decisions it
may face underutilized
capacity if demand
suddenly falls, or capacity
constraints if it rises
quickly.

Volatility vs Growth
1000

Revenue volatility* (%)

A higher level of revenue


volatility implies greater
industry risk. Volatility can
negatively affect long-term
strategic decisions, such as
the time frame for capital
investment.

Hazardous

Rollercoaster

100
10

Pet Stores

1
0.1

Stagnant
30

10

Blue Chip
10

30

50

70

Five year annualized revenue growth (%)


* Axis is in logarithmic scale
SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

30

Operating Conditions

Revenue Volatility
continued

Regulation & Policy


Level & Trend

The level of
Regulation is
Medium and the
trend is Steady

Industry Assistance
Level & Trend

The level of
Industry Assistance
is None and the
trend is Steady

Key tariffs
Goods
Saddlery and harness for any animal (excluding dogs see above)
Dog leashes, collars, muzzles, harnesses and similar
Pet food

Low rate

High rate

2.8
2.4
0.0

2.8
2.4
0.0
SOURCE: USITC

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

31

Key Statistics
Industry Data
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Sector Rank
Economy Rank

Revenue
($m)
10,234.7
11,064.5
11,486.7
11,925.2
12,872.9
13,246.2
13,338.9
13,712.4
14,164.9
14,745.7
15,424.0
16,102.7
16,730.7
17,098.7
17,799.8
42/63
412/705

Annual Change
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Sector Rank
Economy Rank

Revenue
(%)
8.1
3.8
3.8
7.9
2.9
0.7
2.8
3.3
4.1
4.6
4.4
3.9
2.2
4.1
14/63
207/705

Industry
Value Added
($m)
1,987.3
2,102.1
2,078.9
2,330.0
2,400.4
2,442.9
2,516.9
2,604.2
2,701.9
2,803.5
2,920.2
3,040.9
3,137.3
3,252.0
3,319.5
40/63
510/705

Establishments
15,835
16,541
16,813
17,130
17,638
17,110
16,411
16,509
16,658
16,875
17,145
17,316
17,680
18,086
18,575
41/63
219/704

Enterprises Employment
13,790
88,620
14,213
90,933
14,483
98,384
14,558
101,237
14,804
109,870
14,115
106,460
13,393
108,928
13,420
110,126
13,527
112,549
13,730
115,363
13,977
118,939
14,131
120,723
14,414
123,379
14,731
128,314
15,084
131,522
37/63
38/63
207/704
270/705

Exports
---------------N/A
N/A

Industry
Value Added
(%)
5.8
-1.1
12.1
3.0
1.8
3.0
3.5
3.8
3.8
4.2
4.1
3.2
3.7
2.1
23/63
278/705

Establishments
(%)
4.5
1.6
1.9
3.0
-3.0
-4.1
0.6
0.9
1.3
1.6
1.0
2.1
2.3
2.7
22/63
272/704

Enterprises Employment
(%)
(%)
3.1
2.6
1.9
8.2
0.5
2.9
1.7
8.5
-4.7
-3.1
-5.1
2.3
0.2
1.1
0.8
2.2
1.5
2.5
1.8
3.1
1.1
1.5
2.0
2.2
2.2
4.0
2.4
2.5
19/63
14/63
209/704
178/705

Exports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Key Ratios
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Sector Rank
Economy Rank

IVA/Revenue
(%)
19.42
19.00
18.10
19.54
18.65
18.44
18.87
18.99
19.07
19.01
18.93
18.88
18.75
19.02
18.65
27/63
570/705

Imports/
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Exports/Revenue
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Figures are ination-adjusted 2012 dollars. Rank refers to 2012 data.

Revenue per
Employee
($000)
115.49
121.68
116.75
117.79
117.16
124.42
122.46
124.52
125.86
127.82
129.68
133.39
135.60
133.26
135.34
44/63
515/705

Imports
---------------N/A
N/A

Wages
($m)
1,441.3
1,512.5
1,469.9
1,690.0
1,813.8
1,818.9
1,816.3
1,821.9
1,871.7
1,928.6
1,990.4
2,034.2
2,122.5
2,188.5
2,249.8
45/63
445/705

Domestic
Demand
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Number of Pets
- Cats and Dogs
(Million)
143
153
163
154
163
165
171
175
180
184
187
191
195
199
203
N/A
N/A

Imports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Wages
(%)
4.9
-2.8
15.0
7.3
0.3
-0.1
0.3
2.7
3.0
3.2
2.2
4.3
3.1
2.8
22/63
283/705

Domestic
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Number of Pets
- Cats and Dogs
(%)
7.0
6.5
-5.5
5.8
1.2
3.6
2.3
2.9
2.2
1.6
2.1
2.1
2.1
2.0
N/A
N/A

Wages/Revenue
(%)
14.08
13.67
12.80
14.17
14.09
13.73
13.62
13.29
13.21
13.08
12.90
12.63
12.69
12.80
12.64
35/63
457/705

Employees
per Est.
5.60
5.50
5.85
5.91
6.23
6.22
6.64
6.67
6.76
6.84
6.94
6.97
6.98
7.09
7.08
25/63
482/704

Average Wage
($)
16,263.82
16,633.13
14,940.44
16,693.50
16,508.60
17,085.29
16,674.32
16,543.78
16,630.09
16,717.67
16,734.63
16,850.14
17,203.09
17,055.82
17,105.88
49/63
651/705

Share of the
Economy
(%)
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
N/A
40/63
510/705

SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Pet Stores in the US February 2012

32

Jargon & Glossary

Industry Jargon

HUMANIZATION A trend where pet owners treat pets


as humans, providing them with services such as pet
hotels and grief counseling.
JUST-IN-TIME (JIT) A strategy implemented to
improve protability by reducing inventory and
purchasing the raw materials that are needed for the
immediate term only.

IBISWorld Glossary

BARRIERS TO ENTRY Barriers to entry can be High,


Medium or Low. High means new companies struggle to
enter an industry, while Low means it is easy for a rm
to enter an industry.
CAPITAL/LABOR INTENSITY An indicator of how much
capital is used in production as opposed to labor. Level is
stated as High, Medium or Low. High is a ratio of less
than $3 of wage costs for every $1 of depreciation;
Medium is $3 $8 of wage costs to $1 of depreciation;
Low is greater than $8 of wage costs for every $1 of
depreciation.
CONSTANT PRICES The dollar gures in the Key
Statistics table, including forecasts, are adjusted for
ination using 2012 as the base year. This removes the
impact of changes in the purchasing power of the dollar,
leaving only the real growth or decline in industry
metrics. The ination adjustments in IBISWorlds
reports are made using the US Bureau of Economic
Analysis implicit GDP price deator.
DOMESTIC DEMAND The use of goods and services
within the US; the sum of imports and domestic
production minus exports.
EARNINGS BEFORE INTEREST AND TAX (EBIT)
IBISWorld uses EBIT as an indicator of a companys
protability. It is calculated as revenue minus expenses,
excluding tax and interest.
EMPLOYMENT The number of working proprietors,
partners, permanent, part-time, temporary and casual
employees, and managerial and executive employees.
ENTERPRISE A division that is separately managed and
keeps management accounts. The most relevant
measure of the number of rms in an industry.
ESTABLISHMENT The smallest type of accounting unit
within an Enterprise; usually consists of one or more
locations in a state or territory of the country in which it
operates.
EXPORTS The total sales and transfers of goods
produced by an industry that are exported.
IMPORTS The value of goods and services imported
with the amount payable to non-residents.

PET BOARDING AND DAY-CARE Long- and short-term


options for owners who need assistance looking after
their pets. Services include feeding, walking, grooming
and lodging.
PET PARENTS Pet owners who are enthusiastic about
their pets and treat them as members of their family.

INDUSTRY CONCENTRATION IBISWorld bases


concentration on the top four rms. Concentration is
identied as High, Medium or Low. High means the top
four players account for over 70% of revenue; Medium
is 40 70% of revenue; Low is less than 40%.
INDUSTRY REVENUE The total sales revenue of the
industry, including sales (exclusive of excise and sales
tax) of goods and services; plus transfers to other rms
of the same business; plus subsidies on production; plus
all other operating income from outside the rm (such
as commission income, repair and service income, and
rent, leasing and hiring income); plus capital work done
by rental or lease. Receipts from interest royalties,
dividends and the sale of xed tangible assets are
excluded.
INDUSTRY VALUE ADDED The market value of goods
and services produced by an industry minus the cost of
goods and services used in the production process,
which leaves the gross product of the industry (also
called its Value Added).
INTERNATIONAL TRADE The level is determined by:
Exports/Revenue: Low is 0 5%; Medium is 5 20%;
High is over 20%. Imports/Domestic Demand: Low is
0 5%; Medium is 5 35%; and High is over 35%.
LIFE CYCLE All industries go through periods of Growth,
Maturity and Decline. An average life cycle lasts 70
years. Maturity is the longest stage at 40 years with
Growth and Decline at 15 years each.
NON-EMPLOYING ESTABLISHMENT Businesses with
no paid employment and payroll are known as
non-employing establishments. These are mostly set-up
by self employed individuals.
VOLATILITY The level of volatility is determined by the
percentage change in revenue over the past ve years.
Volatility levels: Very High is greater than 20%; High
Volatility is between 10% and 20%; Moderate
Volatility is between 3% and 10%; and Low Volatility
is less than 3%.
WAGES The gross total wages and salaries of all
employees of the establishment.

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