Pioneering the Pet Industry: Timeless Lessons from the Founder of PetSmart (Part 2)

Issue #41

January 23rd, 2024

Quick Hits:

🐶 Oldest Dog? Perhaps not! The new Guinness scandal!

🇺🇸 Most popular dog breed by state, can you guess who’s no. 1?

🌟 Don’t let the Instagram fame get to their head

🐕 Pizzagate solved!

🦜 Snitched on by your parrot 

🐺 Never argue with a Husky 

❤️ “Everything I do, I do for my dogs” - this man speaks for all of us. 

• Partnership - Wag! pet care solutions are now available through Bright Horizons Back-Up Care Services.

• First-of-its-kind collaboration - Odie and Digital Pet Pharmacy PetRx announce strategic partnership.

• Jump around - Jampy, a women-founded startup developing high-quality and eco-friendly products for pet wellness, closes €1M pre-seed round.

• Historic growth - In Q4 2023, Scenthound opened 18 new 'Scenters,' the highest number ever opened in a single quarter.

• United Acquires Vital - The intended acquisition still needs to be approved by the Danish Competition Authorities. 

• AI service for animals - SK Telecom has formed a strategic partnership with Vetology Innovations to bring their medical tech to the US market.

• Biocat - A recent partnership will allow the company to bring its proprietary probiotic strains to the US pet food market.

• VMX - “At VMX 2024, we saw things that once sounded like fantasy, now become a reality.”

• GFI - The plant-based food and ingredients company invests $12.3M to grow its pet food division.

This is the second part of our two-part series with the legendary Jim Dougherty, the founder of PetSmart & Petsense. If you want to read more about his story, you can purchase his new best-selling book here.

You were the first to introduce transparency in pet grooming by introducing the glass window, what made you have that realization? And what was the immediate response to it? 

It was PetSmart’s way of creating transparency for the pet owner. The industry standard was to leave your pet with an employee, and the pet/groomer would go to a grooming room, which was not visible to the pet owner – it was an accepted process.

We felt the customer would feel more at ease seeing their pet being groomed. Thus, we moved grooming to the front of the store, and the enclosure was all glass. A plus for the pet owner, customers in the store, and the store.

It was a huge success, and it is still the protocol at PetSmart today.

You were one of the first (if not first) to do in-store adoptions which translated into lifetime customers, was that an intentional strategy? 

We never wanted to sell pets. A few trips to a local shelter were even more convincing, seeing countless pets in drab, cold enclosures, most of whom were scared and unsure of what was happening. It was a no-brainer. It gave us an opportunity to not only serve customers, but to aid the community in reducing the pet population and decrease or eliminate euthanasia. 

It was another huge success and fun for associates and management.

I'm sure a million things are different about the pet industry between 1986 and today, but what are some things that are perhaps different now that you wouldn't have even been able to dream about back then? What things in the pet industry are you excited about going forward?

• Smaller stores realized they had to be more competitive

• Distributors have to re-invent how they moved product

• Adoptions were almost non-existent – now there are countless numbers of local rescues

• Online sales are a huge factor in the pet industry

• Home delivery

You recently wrote & published your memoir called "Pet Project", which has been said to be a "must-read for aspiring entrepreneurs and pet lovers alike." How did you find the process of writing a book, and why did you decide to write it?

Writing a book can be an exhausting undertaking. We chose to make it as fun and humorous as possible, all while getting a variety of points made. My career in the pet industry might not have had as many opportunities as it did. I came from an impoverished home and did not have much direction until my parents sent me into the military. As a United States Marine, I learned values and a mindset not described in any book. It was a set of standards I have used throughout my life. 

After I retired, I felt compelled to write my story, from the many failures to the great successes. It’s been a great life. Many individuals have crossed my path, and their guidance has helped me learn lessons as well as become partners in my success.

Writing Pet Project tells the story of how starting a business isn’t easy; every day brings a new challenge, failure, and success. It’s how we grow. PetSmart was a pet retail superstore, but in the early days, there were times when we didn’t think we would be open the next day. It was a struggle, but worth the time and effort in the end.

• Merlin the Spaniel - This unbelievable story showcases how little we understand man’s best friend.

• Declawing no more - Massachusetts passes bill banning inhumane procedure on cats.

• Goldens in Golden - The annual Golden Retriever in Golden, Colorado event is happening next month. If you live in the area, this is a must-see.

• Peace of mind - This national nonprofit program was just recognized for its important contribution.

• Find your dog’s sniff mate - Calling all single doggies - Wagit just announced a rather unique “Married at First Sniff” competition. Applications end February 12th.

• Tailwag - What does it actually mean? The answer might surprise you.

• Poo crackdown - This Italian town has ordered all dogs to take a DNA test.

• How is this not already the law? - A new bill proposes fire alarms, sprinklers, and inspections become mandatory in facilities where pets are kept.

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4 key insights from Jim Dougherty

You stated that when you were hiring at PetSmart, the key wasn't if you knew the pet industry, the key was - if you had a pet. Tell us a bit more about your approach to building a team. What is your approach to management and leadership?

We always felt the associates we hired who had pets would serve our customers with the same passion they had for their own pets. They understood the responsibilities of owning a pet and what it took to take care of a pet. Our associates were always interested in the customer's pets and stories about their pets. Training them about the pet industry was easy.

You are an active mentor to many entrepreneurs. What are some traits you look for in up-and-coming leaders and entrepreneurs?

• Eagerness

• Understanding of their idea (product or business)

• Competitors

• Costs

• Time commitment

• Failure/Success

Originally, the name was Petfood Warehouse but in 1989 you changed the name to PetSmart, we see companies changing names all the time, with varied success, why did you decide to rename the company and what was the initial feedback?

We were expanding across the nation, and the word “warehouse” had some negative connotations with some commercial real estate businesses. Plus, it was another way to entice customers into the store. We had a contest and asked customers to submit a new name for Petfood Warehouse. The response was overwhelming. 

At the same time, we hired an outside marketing company to redesign the interior of the stores.

Can you tell us one personal story of an obstacle/challenge that you faced early on and how you overcame it?

From the beginning, there was one glaring obstacle – buying directly from the manufacturer. Without that ability, we knew we would not survive. We had to be competitive; without buying directly from the manufacturer, we would not be profitable.  

It was a struggle since 90% of manufacturers would not sell directly to us. We were able to convince a few risk-takers to sell to us, and eventually, some distributors would divert the product directly to us. However, it lessened our sales margins, but it was worth it to ensure we had products for our customers. Had it not been for a select few, there might not have ever been a PetSmart. 

• Expansion - AFIA received $170k in federal funding to allow the animal food industry more opportunities to broaden market access.

• Biocraft - Has been selected as one of 3 finalists for the inaugural Vegan Women Summit (VWS) Awards.

• HOWND - The UK vegan pet food brand was just named One of the World’s Most Ethical Businesses.

• Fromm the fridge - Fromm Family Foods has launched Bonnihill Farms, a line of gently cooked, fresh/frozen dog food formulas.

• Bugs, Bugs, Bugs - A Danish pet food company is focusing on a sustainable source of protein - insects.

• Purina strikes back - The company says the allegations against it are false.

You reached the end, you deserve a treat 🍖

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Finally, What do you call a penguin in the desert?

Lost!

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