business news in context, analysis with attitude

Bloomberg reports that there seems to be a shift in attitude on the part of pet owners, many of whom until recently seemed willing to spend considerable dollars on indulgences for their dogs, cats and other pets.

According to the story, “The $87 billion pet-product market, once deemed recession-proof, is starting to show cracks as owners struggle to make ends meet. Nearly four out of 10 U.S. pet owners in a September Packaged Facts survey said they’re spending less on pet products, up from 27 percent in February 2010. Three-quarters of them are looking for deals, particularly on non-food items like apparel and toys.”

On the manufacturer side, this means that companies are doing things like reducing package size as a way of minimizing the impact of price increases. On the retail side, companies like PetSmart are ramping up their promotional schedules as a way of keeping customers from “defecting” to Walmart, Target or online alternatives.
KC's View:
Could this mean that sanity is returning to the world of pet ownership?

Maybe it is just me, but I’ve always wondered about why it is so important to feed gourmet, organic pet food to animals that will, in their spare time, lick their genitals.