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New Retail sale of dogs venture



 
 
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Old January 19th 04, 02:18 AM
Tricia9999
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Default New Retail sale of dogs venture


http://promomagazine.com/ar/marketin...rint/index.htm

(Printed below)


Purebred Hotbed

A group of IKEA and Gap veterans are trying their hand with puppies. Woof &
Co. has opened two stores in Boston malls, with plans to add six stores in
2004 and roll national in 2005. The chain sells purebred puppies and upscale
accessories, a distinct niche in the $30 billion-plus U.S. pet industry. It
competes with private breeders, not big-box chains like PetsMart or Petco.
³We're not interested in going head-to-head selling dog food,² says Linda
Povey, partner at consultancy Kanter International, which created Woof & Co.
³Their strategy is high volume, low prices. We're a lifestyle store.²

The Edison, NJ-based start-up gets its puppies from Hunte Corp., a Goodman,
MO-based broker for U.S. breeders. Prices range from $750 to $1,800,
comparable to private breeders, with a 50%-plus profit margin. Each pup has
a three-year warranty against congenital and hereditary defects. Puppies
travel by air-conditioned truck to stores, where they get 75% of retail
space (for 80% of sales); high-end accessories get 15%; basics get 10%.

Former IKEA U.S. president Steen Kanter took a request from Meridian Venture
Partners to save nine Family Pet Centers from Chapter 11 in 2002. IKEA and
Gap veteran Don Jones became Woof & Co. CEO in October; Baby Gap alum Karen
Oden took on operations in November.

Woof & Co. is building a database on owners and their puppies. For now,
marketing is in-store only, with grand opening info mailed to pet owners
within five miles. Marketing will ramp up when markets get a critical mass
of stores.


 




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