Pet Valu (PET) Investor Presentation summary

Mission and market position

• Aims to be Canada's preferred pet retailer, offering products, care, and expertise both in-store and online.

• Operates the largest specialty pet retail network in Canada with 799 stores across all 10 provinces.

• Holds a leading market share, reaching over 75% of Canadians within 5km of a store.

• Competes in a resilient, growing pet industry with Canadian pet industry spend rising from $2.2B in 1994 to $13.0B in 2023.

• Benefits from trends like increasing pet ownership and the humanization of pets.

Business model and operations

• Utilizes a highly flexible, franchise-led model with 576 franchise stores and 223 corporate stores as of Q2 2024.

• Franchisees are deeply embedded in their communities, with a low turnover rate and strong owner-operator commitment.

• Corporate stores drive innovation and standardization, with high average unit volumes and strong cash-on-cash returns.

• All stores are small, adaptable formats, supporting consistent results across rural, suburban, and metro markets.

Customer experience and engagement

• Delivers compelling retail experiences through welcoming stores, expert staff, and ongoing upgrades.

• Offers premium consumables and proprietary brands, which made up ~25% of system-wide product sales in 2023.

• Provides in-store services like self-serve dog wash bays (66% of stores) and grooming salons (30%).

• Maintains a strong loyalty program with 2.9 million active members, accounting for 81% of system-wide sales in 2023.

• Features fully integrated omni-channel capabilities, including e-commerce, click-and-collect, and subscription services.