The UK's largest pet-care retailer is taking "urgent and necessary action", as interim chief executive Ian Burke put it, to regain momentum after a disappointing first half of FY26.

Pets may be cherished companions, but their owners have proved less predictable. Group consumer revenue inched up by just 0.7% to £1.06bn in the 28 weeks to October 9th. The retail division - still the bulk of the business - saw revenues fall by 2.3%, dragged down by declining accessories sales and slower food demand in a flat market with little inflation. Underlying profit before tax for retail plunged by more than 80%, to just £3.5m.

Vets power ahead

The contrast with the vet arm could hardly be sharper. Veterinary operations delivered revenue growth of 6.7% and underlying profit of £44.9m, an 8.3% rise. This capital-light joint-venture model has become the engine of the group: strong transaction values, healthy subscription revenues and robust practice economics continue to drive the division. The company plans ten new practice openings and 15 extensions this year.

Source: Pets at Home

A Turnaround Underway

Yet the outperformance in vets cannot mask the group's broader challenges. Statutory profit before tax fell 29% and basic earnings per share dropped to 5.7p. The retailer has been squeezed by price cuts, adverse product mix and lower supplier income, reducing gross margins by over a full percentage point. The shift to a new fulfilment centre and a revamped digital platform, both meant to modernise operations, instead introduced complexity, added costs and resulted in lost customers.

Management insists it has a clear plan. The turnaround focuses on four areas: improving product ranges (particularly in the fast-changing premium nutrition segment), maintaining sharper pricing, tightening execution in stores and online, and cutting overheads. A restructuring is expected to remove around £20m from the cost base, albeit with up to £8m in charges this year.

Despite the turbulence, the outlook has not worsened. Pets at Home reaffirmed full-year profit guidance of £90–100m, supported by steady vet performance and hopes of modest retail improvement as weak comparatives fall away. A new insurance product is on track for launch in 2026, and the group remains confident it can leverage its scale, brand and subscription model to reignite growth.

For now, though, the company must prove it can steady its retail business while preserving the strength of its veterinary one.