Pets at Home to renegotiate 40 leases

Pets at Home is aiming to complete 40 lease renegotiations in its 2025 financial year, as part of an ongoing drive to reduce store rents.  The pet care retailer, which operates more than 450 centres, said it has achieved an average rent reduction of 20% at its stores in the year ending 28 March. During the year, it opened five centres and logged 41 store refits. Elsewhere, the pet care chain received a £22m incentive at its new distribution warehouse in Stafford. Nonetheless, the costs associated with the move impacted the retailer’s bottom line, with statutory profit before tax down by 13.7% at £105.7m and underlying profit before tax falling by 3.2% to £132m. The retailer moved into the warehouse, which measures 670,000 sq ft, to replace its legacy distribution centres last year. The warehouse was forward-funded by Tesco Pension Fund and developed by Stoford. Consumer revenue at the retailer grew by 6.9% to £1.9bn during the year, while total group revenue rose by 5.2% to £1.5bn. Pets at Home chief executive Lyssa McGowan called it a “pivotal year” for the business, having delivered “key building blocks” for “long-term growth”.