We have written 4 posts about the pet stores in our previous posts. We can conclude that the sales benefit will be better if the retailing takes up a higher ratio. Because the benefit per groomer is fixed, but the retailing benefit can increase to a higher level.
So if we want to increase retailing sales, then we must choose the location of the traffic center, the shopping mall is a very good choice.
This time, we visited a chain pet store in the city of the east of China, we are pet supplies manufacturer, this pet store usually buys many kinds of products from us. This pet store started from community shops in 2013, from 2017 they started opening shops in the shopping mall. Now they have 2 shops in this city.
The pet store in the shopping mall has 360 square meters, the retailing area is about 200 square meters, the pet grooming area has 80-90 square meters. The left area is a living pet display area and restroom. There is no pet fostering because the plaza forbids this.
The unit customer price is 150-180rmb, it sells all the categories. Including the pet foods and supplies for a mammal, reptile, aquarium, etc. They are more than 2000 SKUs are selling in the shop, actually, there are 6000 SKUs in the system. Pet foods and supplies have a ratio of 6:4, retailing takes up 70-75% of the turnover.
We are pet product manufacturers, so this pet store-bought many kinds of categories from us.
They are focusing on the middle and high-end market from the price level, small dog washing price is 150rmb, grooming price is at least 300rmb. There are 4 pet groomers in this store, in order to improve the working efficiency, they require the booking service. So every groomer can serve 6 pets per day, pet grooming only takes 5 percent in the sales.
Living pets selling:
They have living cats, dogs, reptiles. Cats and dogs prices are between 3000-8000rmb, the gross profits are about 55%, this takes up 20%-25% of the sales.
This shopping mall store April turnover is 1130 thousand RMB, the overall gross profits are 35%. Renting is 12%, 17 staffs, the employee cost is about 120 thousand RMB. So the net profits are about 140 thousand RMB, the net profit rate is about 12.4%. This shop invested more than 2 million RMB, so it will take 1-1.5 years to arrive at the balance point.
According to the numbers, the sales turnover is much higher than the community shops, but this kind of store is not the best. Because, along with the increase of the sales turnover, the management cost is also increasing, this will bring the overall benefits down.
The best sales turnover in this shop is 600-700 thousand RMB.While the turnover is more than 1 million RMB, management costs increased a lot.
But since the retailing income is so high, can the shopping mall store canceled the pet grooming service? We calculated this situation, 1 pet groomer can bring 20 thousand RMB. 1 pet groomers can serve 5-6 pets, the customer unit price is 150rmb. So the best sales that pet groomer can bring is 23-27 thousand RMB.
Adding free time and customer discounts, the final sales income is only about 20 thousand RMB. There are 4 groomers in this shop, so the total sales income is about 80 thousand RMB.
This is the highest level, while the monthly sales income is only about 57 thousand according to the sales turnover.
What about the cost? The pet groomers’ salary is 8 thousand RMB (including the insurance), the bonus is 20%. Calculate pet grooming without deducting the labor cost gross profit, it has net profits 4700rmb, so the boss said: “We didn’t earn money on grooming”.
But the retailing, 1 staff can bring 80-100 thousand RMB, 50 square meters need 1 salesperson. What’s more, the salesperson takes a lower salary than the groomers.
If change the pet grooming area into the bigger retailing area, hiring 2 more salespersons, the benefits can increase 60-80 thousand RMB theoretically.
In order to do testing, they tried to cancel the grooming service in new stores, the sales turnover is about 300 thousand RMB, net profits are about 30 thousand RMB.
But they will keep grooming service in the following stores, because the grooming service is more frequent, and it can build very good relations with customers.