The boss of Pets at Home plans to leave the retailer next May after eleven years with the company and the past three as chief executive.
The impending departure of Peter Pritchard was announced alongside an upgraded estimate of profits, but the news overshadowed a forecast of £131 million in pre-tax profit, compared with £87.5 million last year, with investors fearing that his exit could mean weaker growth. That sent the shares down 1.9 per cent, or 9½p, to 490p last night.
Pritchard, 51, joined Pets at Home in 2011 and was appointed chief executive in 2018. Under his leadership, the company has grown considerably, with its market capitalisation nearly quadrupling.
Founded in 1991 and operating 453 stores around the country, Pets at Home has performed strongly recently, with pet sales increasing significantly since March last year as people sought company from cats, dogs and other animals during coronavirus lockdowns. Over the past 12 months, Pets at Home’s share price has risen by 24 per cent.
Pritchard has been widely credited with leading a turnaround of the business, which before he took over had been languishing below its stock market float price of 245p in 2014. He overhauled its veterinary venture after admitting that some practices were locked into agreements that made it almost impossible to turn a profit.
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He also arrested the steady flow of shoppers switching to cheaper supermarket produce and buying online by making Pets at Home more competitive on price and improving its range of services, such as dog grooming, to “Amazon-proof” the business.
He was upbeat about the company’s prospects yesterday, saying that it was “primed to continue growing its share of the market for many years to come”.
There has been speculation that Pritchard — who previously worked at Sainsbury’s, Iceland, Marks & Spencer and Asda — could return to Asda as chief executive of the privately owned supermarket. The Issa brothers and TDR Capital continue to search for a replacement for Roger Burnley, who left in August. However, insiders said that Pritchard was committed to the retailer until next May and highlighted his intention to take a break.
