PHOENIX-Even pooch-pampering has its limits. PetSmart is cutting its store and PetsHotels expansion this year, executives said at the company’s fourth-quarter conference call.

The company will open 40 to 42 net new stores and 20 PetsHotels this year. Last year, the company opened 112 stores and 45 PetsHotels and closed eight stores. Because they are more capital intensive, remodels have essentially shut down.

“By slowing our store growth in 2009, we believe grater emphasis can be placed on our [existing] store base,” said Robert F. Moran, president and COO.

The company wishes to continue its strong cash position, and will continue to self-finance expansion.

“Not only does that mitigate liquidity risk, but it also is a strategic advantage,” said Chip Molloy, senior vice president and CFO.

And long-term, the prospects for the PetsHotels boarding facilities remain strong, said Philip Francis, chairman and CEO.

“The opportunity is as great as it always was,” Francis said.

Net sales for the 13-week fourth quarter of 2008 increased 2.3% percent to $1.36 billion, compared to the 14-week fourth quarter of 2007. Comparable store sales rose 3%. Net income was $78.4 million, compared with $75.4 million for the fourth quarter of 2007.

The company reported $5 billion in net sales in the 52-week fiscal 2008, up from $4.67 billion for the 53-week fiscal 2007. Comparable store sales rose 3.8%. The company reported net income of $192.7 million, compared with $258.7 million the previous year.

PetSmart operates more than 1,112 pet stores in the United States and Canada and 142 in-store PetSmart PetsHotels cat and dog boarding facilities.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.