Walmart Expands Pet Care Footprint With New Service Centers

Walmart Inc. WMT has unveiled a major expansion of its pet care services, introducing new Pet Service Centers in Georgia and Arizona. The company announced that it will open five more pet service centers in October and early November. This move enhances access to affordable pet care, including in-person and virtual veterinary services, pet prescription delivery, grooming and pet food and supplies. By offering these services under one roof, Walmart aims to provide pet owners with a convenient all-in-one solution for their pets' health and wellness needs. While pet owners are spending more on their pets, inflation continues to present financial challenges, making pet care a potential burden for some. In response to this challenge, Walmart has expanded its Pet Services centers as part of its commitment to Everyday Low Prices, ensuring that pet care remains affordable.The new locations, set to open over the next month, will be launched in Cumming and Alpharetta, GA, and Glendale, Chandler and Mesa, AZ. These locations offer low, transparent pricing with easy-to-understand service packages as new and returning customers seek affordable, transparent care for their pets.The pet care industry remains one of the fastest-growing sectors in retail, with projected annual spending expected to rise by 7% through 2030. The average household expense per pet is anticipated to reach $1,445 by 2026. Veterinary services, now the second largest category of pet-related spending after consumables, are expected to see sustained growth as pet owners prioritizing their pets' health and wellness.What Makes Walmart’s Pet Service Centers Unique?Walmart's pet category resonates strongly with consumers, making it an attractive area for expansion. It represents a significant growth opportunity due to its ability to drive frequent purchases, appeal to customers of all age groups, and remains resilient even when customers' budgets are stretched.The newly introduced Walmart Pet Services centers will have their dedicated entrances next to Walmart stores. While they will operate under the Walmart name, the centers will be staffed by experienced veterinary and grooming professionals in collaboration with PetIQ, a well-known provider in the pet care industry.These centers will continue to provide a wide range of routine veterinary care, including vaccinations, wellness exams and minor medical services. Additionally, grooming services such as baths, nail trims, teeth cleaning, ear cleaning and basic hair trims will be offered.Walmart's latest expansion of its Pet Services centers follows the success of its first location in the Atlanta area, which saw strong customer visits and repeat rates. About 25% of the customers who visited the first pet services location had never previously shopped at Walmart for pet products.However, with this expansion customers coming for veterinary or grooming services also increased sales in other pet categories, such as pet food and supplies. This "halo effect" demonstrates the potential for Walmart's pet services model to drive broader growth in the pet care sector and attract new, loyal customers.What Else Should You Know About WMT?Walmart continues to be driven by its strong omnichannel business. From investing in pioneering data analytics to expanding its digital presence and optimizing in-store operations, Walmart leaves no stone unturned. Impressive store proximity to customers allowed Walmart to use its stores to fulfill e-commerce orders. WMT has undertaken several initiatives to enhance e-commerce operations, including buyouts, alliances and improved delivery and payment systems. Walmart plans to officially launch its highly anticipated Walmart+ benefit with Pawp, offering Walmart+ members free, 24/7 access to veterinary professionals. This online service allows pet owners to have unlimited $0 visits via text or video, making it easier for them to address their pets' health concerns from anywhere. This new benefit expanded its Pet Pharmacy services which offer affordable pet prescriptions delivered directly to customers’ doorsteps and also available in-store.Walmart’s expansion of the Pet Services model, both through physical locations and digital offerings like the Walmart+ Pawp benefit, signals a commitment to replicating this success in other communities, making it a key player in the growing pet care market.The Zacks Rank #2 (Buy) company’s shares have increased 13.5% in the past three months compared with the industry’s 13% growth.Image Source: Zacks Investment ResearchThree Picks You Can’t MissWe have highlighted three other stocks in the broader sector, namely Sprouts Farmers SFM, The Chefs' Warehouse CHEF and Flowers Foods FLOSprouts Farmers, which is engaged in the retailing of fresh, natural and organic food products, currently sports a Zacks Rank #1 (Strong Buy). SFM has a trailing four-quarter earnings surprise of 12%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings implies growth of around 9.6% and 18.7%, respectively, from the year-ago reported numbers.The Chefs' Warehouse is a premier distributor of specialty food products in the United States, the Middle East and Canada. It currently sports a Zacks Rank #2. CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. The Zacks Consensus Estimate for Chefs' current financial-year sales and earnings suggests growth of around 9.7% and 12.6%, respectively, from the year-ago reported numbers.Flowers Foods, one of the largest producers of packaged bakery foods in the United States, currently carries a Zacks Rank #2. FLO has a trailing four-quarter earnings surprise of 1.9%, on average.The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and earnings calls for growth of around 1% and 5%, respectively, from the year-ago reported numbers.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT): Free Stock Analysis Report Flowers Foods, Inc. (FLO): Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report Sprouts Farmers Market, Inc. 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