"Shopping with Dogs": Retail Industry Targets Petfam Customers

Department Stores and Outlets Create Pet Walking Paths and Pet-Friendly Cafes
Convenience Stores Join In... Differentiation with Handmade Snacks Boosts Sales

A customer engaging in activities with their pet dog at the Fran?oise Pet store in Lotte Department Store Ilsan branch.

[Asia Economy Reporter Jeon Jinyoung] As the number of people raising pets increases day by day, the distribution industry has started a competition to attract the ‘Petfam’ who cherish their pets like family members.

According to the industry on the 27th, department stores and outlets have begun creating dedicated pet product zones or spaces where customers can shop with their pets. Lotte Department Store opened ‘Francois Pet,’ a total pet care service brand, at its Ilsan branch on the 9th. It is a space where services such as dog kindergarten, grooming, hotel, and product sales are provided all at once. Last August, Lotte Department Store opened the pet park ‘Rookie Park’ at its Dongtan branch, which now attracts over 1,000 visitors per month on average. The Premium Outlet TimeVillas branch considered customers with dogs from the design stage, allowing dogs to walk freely in outdoor stores and installing pet stroller parking lots throughout the store.

Shinsegae Starfield Goyang branch prepared pet strollers to enable shopping with pets. On the rooftop, a pet park and walking trail were created. In the Hanam branch, the pet-friendly caf? ‘And Terrace’ was opened last May, allowing customers to enjoy brunch with their dogs.

Hyundai Department Store has entirely created a pet-only zone in Building B of Hyundai Premium Outlet Space One. On the rooftop garden on the third floor, it operates ‘Heundi House,’ the largest pet park in the industry. In 2021 alone, about 20,000 dogs visited Heundi House. On the first floor, the premium total pet care shop ‘Coco Square’ was opened, offering services such as pet-only kindergarten, swimming pool, spa, and hotel.

Galleria Department Store was the first department store to open a pet boutique selling pet products in its luxury hall. The boutique sells various pet products such as dog strollers. The Japanese brand ‘Air Buggy’ dog stroller priced at 1.2 million won is especially popular.

Convenience stores have also joined the competition to attract Petfam. BGF Retail, which owns CU, exclusively sold a dog training program (4.99 million won) operated by the dog training company Bodeum Company last year. Sales have steadily increased, with pet category sales from the 1st to the 17th of this month rising 30.9% compared to the previous year. GS25 also saw a 38.4% increase in pet category sales during the same period. In August last year, GS25 introduced a basic funeral kit containing a farewell guidebook in collaboration with the pet funeral service company 21Gram. Seven Eleven differentiated itself by exclusively operating the pet snack brand ‘Patrasche.’ As a result, pet category sales increased by 30% during the same period. Emart24 targeted Petfam with low-priced snacks and handmade snacks, resulting in a 37% increase in related sales.

This trend appears to be aimed at the increasing demand from pet-owning households. Especially for outlets, it is also used as a strategy to increase consumers’ shopping dwell time. An industry official said, “Introducing pet-friendly content has become an essential element in domestic department stores and the distribution industry,” adding, “Since demand is steadily increasing, the industry is focusing on strengthening related stores.”

According to the Korea Rural Economic Institute, the domestic pet market size, which was 1.9 trillion won in 2015, grew to 3.4 trillion won in 2020 and is expected to expand to around 6 trillion won by 2027.