How to Open a Pet Supply Store in 2025

Thinking of opening a pet supply store? You’re eyeing a strong market with high demand. 

US consumers shelled out nearly $152 billion on their pets in 2024, up almost 11% in two years, according to the American Pet Products Association (APPA). That’s more than the country spends on beer and going to the movies combined. 

The market saw a huge bump during the pandemic, when homebound consumers sought out new furry friends to ease the boredom—and while the year-over-year growth rate has slowed somewhat since that astronomical rise, the market has continued to add value as dedicated pet owners look to give their pets healthier diets and tastier treats. In 2023, US pet owners spent 17.6% more on pet food than in 2022, according to pet food industry data. 

But before you put a down payment on a storefront or purchase a domain, it pays to know what it takes to compete in the pet retail market. Ahead, you’ll learn everything from how to choose your niche and launch a physical store to selling products anywhere you’d like.

Decide on your pet supply store business model

When you decide to open a pet supply store, there are several options for what type of store to open. Understanding your goals, market demand, and the competitive landscape can help you choose the best path for your pet business. 

There are three primary types of pet supply stores:

Online-only pet supply store

Launching online first is ideal when high retail rents, limited foot traffic, or a lean budget make opening a physical store risky. IBISWorld estimates online pet food and supply sales reached over $28.5 billion in 2024, driven by the rise of pet ownership and the popularity of ecommerce.

The online-only business model works best when:

• Your target audience already shops for pet products online or on social platforms. During the pandemic, new and seasoned pet owners alike grew accustomed to the convenience of shopping online for dog beds, cat toys, aquarium gravel and everything else it takes to provide their creatures comfort. These shoppers aren’t likely to suddenly find a reason to drive, park, and wander the aisles when they’re accustomed to the ease of doing it online. 
• You can differentiate your business with a clear niche, like grain-free treats or eco-friendly toys. Shoppers with specific and specialized wants will find the right store wherever it’s located. Owners concerned about optimizing their pet’s diet, for example, are likely to do a lot of online research to find the very best options for a long and healthy life. If this research leads them to products that are your specialty, clearly described on your online store, your niche becomes your driver for conversions.
• Reliable suppliers and shipping partners are in place to ensure delivery times remain competitive. Not everyone lives near a convenient location for pet supply shopping. If your inventory management and delivery processes are on point, your online store may be the perfect option.

The advantages of starting an online store include:

• Lower overhead: No lease, utilities, or in-store payroll. The significantly lower cost of doing business enables you to operate on thinner margins in order to stay competitive online.
• Unlimited hours and reach: Sell 24/7 to national or global audiences. Anytime access to key. When their Frenchie demands her first walk at 6 am every day, your customer is not likely to be impressed with their local store’s 10 am opening.
• Scalable marketing: Use social ads, influencers, and email rather than having to rely on local foot traffic.

The major challenge is competition:

• Ecommerce juggernauts like Amazon and Walmart: These titans of online retailing are top of mind for many retailers regardless of what category of product they’re shopping for.
• Chewy: Chewy has carved itself a niche as the Amazon of all things pet-related, with roughly one-third of online pet supply orders in the US arriving in the familiar boxes with blue Chewy lettering.

Remember, some consumers are so used to shopping with these major retailers that their browser autofills “Amazon” before their finger even hits the A key. To compete with such entrenched habits, your online pet store will need top-notch, eye-catching marketing that clearly delineates your niche or any other advantages that might lure them away from what they’re accustomed to.

Brick-and-mortar pet supply store

Though the online pet supply industry is thriving, the APPA’s 2025 State of the Industry report found that 47% of pet owners still buy in-store.

A brick-and-mortar pet supply store makes sense when:

• Your location is in a high foot-traffic area frequented by pet owners.Opening a retail store can pay off when you’re in a pet-friendly area. Animal lovers enjoy community, meeting each other’s dogs when they come in the shop or exchanging tips on cat care. Knowledgeable staff who like animals can help foster the friendly vibe while giving customers helpful information on the best products for pets. If you have a knack for that type of community-building, a brick-and-mortar store might be the right choice for you. 
• You plan to add services like training, pet sitting, or grooming. You can create additional revenue opportunities by offering in-person pet services unavailable with online stores, like grooming or DIY wash stations. Pet- grooming services represent a $2 billion niche and are growing 6% to 7% annually. In addition to accessing this revenue source, customers coming into the store for these services may find it convenient to grab some food or supplies they might otherwise order online. 
• Local competition is limited. If there are no other pet supply stores in the area, you have a much better chance of establishing a strong foothold and becoming that community hub for animal lovers. 

The biggest downside of going with a physical storefront is obvious: cost. Rent, utilities, insurance, and retail staff mean you’ll have a higher breakeven point. These retail store costs are fixed, and you’ll need to cover them until local word of mouth kicks in, which can take anywhere between six to 12 months. These upfront costs also make it more difficult for you to offer lower prices, presenting a challenge when you are competing with online-only retailers.

It’s important to note that you should have an online presence, even if you open a physical store. NielsenIQ found pet owners are omnichannel shoppers, with 79% of pet care dollars spent by customers engaging in both online and offline channels. 

Texas-based pet supply store Tomlinson’s leverages Shopify's unified commerce capabilities to unify their online and retail stores. Shoppers get the same experience with the brand no matter where they are, with services like buy online, pick up in-store and omnichannel loyalty programs through Shopify POS.

Franchise pet supply store

Another option is buying into an established chain like Pet Supplies Plus or Woof Gang. This lets you skip the brand-building phase—but requires you to pay royalties to the franchisor. These fees can range from 3% to 8% of your annual sales. 

You’ll also need to budget for an upfront franchise fee, which can run from $50,000 to over $1,000,000, depending on the company. But if the location you’re considering for your store seems perfect for a tried-and-true brand with name recognition, opening a franchise might be just right for you.

How to start a pet supply store in 10 steps

Pet stores are considered one of the most resilient and recession-proof businesses. Here’s how to open your own store, step by step: 

1. Conduct market research
2. Decide on your niche
3. Write a comprehensive business plan
4. Secure funding for your startup costs
5. Handle all legal and licensing requirements early
6. Find and set up your location
7. Source and manage your inventory
8. Choose your retail technology stack
9. Hire and train your team
10. Market your new pet supply store

1. Conduct market research

What types of pets will your store serve? What competitive advantages will set you apart from businesses? What is the typical profit margin for pet supply stores similar to yours? 

These are all questions you should find the answers to before investing substantial time or money into your pet store venture. Remember that success is possible even in a tiny market. When Carlisle Pet Foods opened in a town of just 2,000 people, founders Sarah Pyo and Dave Roberts let neighbors vote on which brands to stock, turning the shop into a local hub within months.

Free tools such as Google Trends can help you find information, such as regions where certain pet supply search terms are most popular. You can also collect your own data through in-person or online surveys, interviews with potential customers, and focus groups.

If you’re opening a physical store, there’s no need to limit your market research to what’s online. Visit popular pet supply stores in areas similar to yours, and observe what they’re doing right. How do their prices compare to what’s available online? If they’re significantly higher, what are store associates doing to add enough value to the experience to make it worthwhile? 

2. Decide on your niche

A clear niche, such as fresh-frozen dog dinners, eco-friendly toys, or breed-specific gear, makes marketing more effective and margins better.

Look for niche markets that are growing fast (e.g., fresh pet food sales are climbing about 20% a year) and align with your market research. Some options include:

• Eco-friendly toys and compostable litter
• Breed-specific gear (e.g., Frenchie harnesses, doodle brushes)
• Pet wellness supplements and functional treats
• Luxury collars, carriers, and apparel
• Senior pet mobility aids (ramps, orthopedic beds)
• Small animal or reptile habitats and decor

Test your idea by listing a handful of products on a popup site or displaying them at farmer’s markets. Aim to move 100 units with minimal ad spend. If shoppers bite, expand into related items to keep them in your orbit.

It helps to find a niche you are particularly passionate or knowledgeable about. It will be an uphill battle to become an aquarium gravel connoisseur if fish bore you to tears. On the other hand, if cockatoos make your heart sing or your grandparents bred poodles to compete in dog shows, consider using these factors to your advantage.

💡 Tip: A good business name, logo, and catchy slogan can go a long way toward attracting customers and converting sales. Do some research and test out your choices with an audience before making them official. You can use Shopify’s free pet business name generator during your brainstorming process.

3. Write a comprehensive business plan

Draft a retail store business plan before you purchase any inventory or assets. Start with a one-line mission statement defining the gap you’ll fill, like “Houston’s go-to shop for eco-friendly pet care”. 

Then, prove your concept by pairing it with data like pet ownership in your area and average spend. 

Your business plan should also include:

• Business models and revenue streams
• Financials like break-even analysis and sales forecasts 
• Budget for inventory, lease/ecommerce build, marketing, and payroll
• Key hires, like groomers, a store manager, and an ecommerce lead 
• Retail permits, insurance, and FDA-related compliance tasks

A solid plan keeps retail operations focused and shows lenders you’ve done your math. 

4. Secure funding for your startup costs

Once your business plan is set, it’s time to use it to secure the funds you need to make your dream a reality.

Opening a pet shop can cost around $50,000 once you add up lease deposits, first inventory, fixtures, and insurance. This number varies depending on factors like location, types of products, and store size. 

Line up capital that works with your risk tolerance. For example, you could use your personal savings, which is easiest on paper, but ties up your personal finances.

If you choose to raise funds from private investors, that carefully crafted business plan is your calling card. Make sure the numbers add up to an appealing and realistic level of profitability. But don’t make it all about the numbers. Remember that every successful business tells a story. Have a clear vision of your pet supply store’s story, and make it compelling enough that investors will want to be a part of it. Your chosen niche can play a big role in the direction of your story.

There are also SBA loans, bank loans, and crowdfunding schemes. Or, you can use Shopify Capital if you run your store on Shopify and Shopify POS. 

With Shopify Capital, you can get up to $2 million with no credit checks and receive the cash in as little as two days. Repayment happens automatically as a fixed slice of daily sales, so slower months don’t crush cash flow.

💰 Case in point: The Public Pet, Honolulu

Jordan Lee struggled to secure traditional financing for his pet supply store, The Public Pet. A fast Shopify Capital advance let him bulk-buy high-turn inventory, upgrade fixtures, and add staff. Within a year, revenue climbed 40% to 50%, and the shop cemented its spot as a neighborhood hub.

5. Handle all legal and licensing requirements early

You can’t start a business without tackling paperwork. It’s best to start early, as processing can take weeks or longer. The last thing you want is to have your beautiful store set up, shelves stacked with great products—only to have your grand opening stalled while you wait for the slow wheels of bureaucracy to turn. 

Federal, state, and local business licenses

Register your business with the state and city where you’ll operate. Most municipalities require a general business license, zoning approval for retail use, and a certificate of occupancy before you can open for business. The efficiency of the offices in charge varies from location to location, with some of the least efficient moving at a particularly glacial rate. In other words, these are processes you want to begin really early.

Employer identification number (EIN)

Apply for a free employer identification number (EIN) from the IRS. It’s like a Social Security number for your store. You’ll need it to open bank accounts, file taxes, and hire staff.

Seller's permit

A seller’s (or resale) permit lets you buy inventory tax-free from wholesalers and collect sales tax at checkout. Requirements vary by state, so check your state’s department of revenue website for the application and reporting schedule.

Specialty licenses

• Animal Welfare Act / USDA APHIS: Stores that sell live animals or offer onsite adoptions may need an Animal Welfare Act license from USDA APHIS, which includes facility care standards and routine inspections. These measures help ensure the safety of every animal—and human—who enters your store.
• Pet food registration: If you repackage or manufacture treats, many states require a Pet Food and Specialty Pet Food Registration, filed through your state’s agriculture department and guided by AAFCO rules.
• Grooming services: While not a requirement, some groomers earn a certification from the National Dog Groomers Association of America to show clients they are skilled. This certification can be prominently shared and displayed as an extra marketing tool to show customers they can be confident in the quality of your services.

6. Find and set up your location

Your lease is often your biggest fixed cost and your loudest billboard, so choose a spot that checks more boxes than “cheap rent.” When choosing a retail location, look for a place with high foot traffic, easy parking, and is near a central commercial hub. 

Of course, there’s more to a location than just the amount of foot traffic. The demographics, habits, and preferences of the customers in your area are important as well. Will local consumers be interested in the niche you’ve chosen, or the story of your brand?

7. Source and manage your inventory 

Before you can open your doors or your online store, you need to source the products you’ll sell.

Finding and vetting wholesale suppliers

Start with pet-industry specialists. National distributors like Phillips Pet Food & Supplies and Pet Food Experts already carry AAFCO-compliant foods, ASTM-tested toys, and treats that clear FDA rules. Check out Faire’s catalog to access a selection of independent brands, potential free returns on first orders, and extended payment terms like Net 60. 

Ask each for lead times and minimum order quantities (MOQs), then order samples and run a 30-day sell-through test before you sign a yearly contract.

If your business serves a more specialized niche, you’ll be interacting with smaller vendors and manufacturers who may be willing to offer smaller MOQs. Relationships with these vendors are especially important because niche businesses are defined in part by the special products they carry. It’s key that you offer the perfect products for your niche, so don’t be shy about shopping around for the best product or vendor.

Managing initial inventory and supplier minimums

Open with one vendor lead-time’s worth of stock plus a 10% to 15% buffer. Activate the free Stocky by Shopify app (included with Retail POS Pro) to set automated reorder points that factor in daily sell-through, seasonal spikes, and each supplier’s MOQ. 

Stocky generates purchase orders, receives deliveries via barcode scan, and updates on-hand counts across your online store and point of sale (POS) the moment boxes arrive. That way, you never oversell a high-turn bag of kibble or miss a reorder window on frozen raw food.

8. Choose your retail technology stack

A thriving pet supply store requires a smooth shopping experience across all channels: online, in-aisle, curbside, or at the local farmer’s market. Juggling separate systems for each channel is not only exhausting, but also expensive and error-prone. 

Shopify can fix that by unifying all your channels in one place—collecting and storing customer data you can use to grow your business. Shopify also comes packed with helpful features like:

• Shopify admin keeps one real-time catalog for web and POS, reducing the dreaded “out of stock” after a sale.
• Shopify Collective and Faire apps import niche brands straight into your store with synced pricing and inventory.
• Shopify Flow automations send low-stock alerts, tag high-value customers, or trigger email campaigns, no coding required.
• Shopify Audiences builds lookalike ad lists that can cut acquisition costs in half.
• Tap to Pay turns any phone into a fully integrated checkout. You can scan, tap, and send a digital receipt in seconds.

9. Hire and train your team

Once you’ve selected your storefront, it’s time to consider hiring employees. Create a budget based on your financial projections and initial funding, then determine what you can reasonably spend on a store associate. Try to strike the right balance between being budget-conscious, while offering a good enough wage to attract high-quality candidates.

Write a job description detailing the role and the qualifications you’re looking for. When writing, try to include a bit about the essence of your brand and the story you are trying to tell. This will give you a chance to evaluate in interviews whether your candidates relate to that story and understand how to translate it into sales.

Think about the feeling you want customers to have when they walk into your store. Associates who really love animals can help foster that warm, pet-positive feel many customers prefer from their community pet store.

Once you’ve hired your employees, train them on your POS system—either a cash register or digital app on a tablet or other device, used to accept payment and log transactions. They should be comfortable with the technology before attempting any solo interactions with purchasing customers. 

Help your new hires gain familiarity with your entire product catalog. If the catalog is extensive, have them learn about one or two different categories each week. Show them other essential operational tasks like restocking shelves and taking inventory. Last but not least, teach them all about your brand’s particular approach to providing excellent customer service. 

10. Market your new pet supply store

Even if you don’t plan to create an ecommerce site to sell online, a website is necessary so potential customers can find information about your business. Diligent pet owners want to find the best, most convenient place to shop for their pets, and they may never find your store if you have no digital presence. If your store is primarily a brick-and-mortar operation, make sure your location and hours of operation are accurate and prominently displayed on your website. 

Popular social media platforms such as Facebook, Instagram, and TikTok are also great places to build your brand, promote events, advertise, and drive sales by getting people in the door. You can use templates to set up your own ecommerce store quickly and easily. Social media also gives customers the opportunity to easily interact with your brand, building valuable social proof.

Get the word out about your new pet supply store by implementing a marketing strategy. You can work with a third-party marketing agency to deploy traditional marketing through media such as television and print advertisements, or you can rely on digital ads, which are generally more targetable and less expensive.

As your brand grows, you can employ more advanced marketing tactics such as creating original content to grab potential customers’ attention and organically boost your search engine optimization (SEO). An informative blog about canine nutrition can boost your store’s reputation for expertise on that subject, and help you climb higher in search results for customers looking to learn that information, and find the best products for their pets. 

If you have a brick-and-mortar storefront, use your space to host a grand opening event with promotions and brand collaborations with nearby businesses. Community activations can be powerful drivers of loyalty. Carlisle Pet Foods installed a free dog-wash station behind their shop, and also sponsors local youth hockey, tactics that helped the store hit a 42% year-to-date repeat customer rate.

Breakdown of pet supply store startup costs

Starting any business from scratch requires a good bit of investment. Here are some of the costs you should expect when opening your pet supply company:

• Market research: Whether you outsource your market research to a third-party firm or conduct it in-house, this is a cost you will need to plan for.
• Marketing and branding: Digital or print marketing is an ongoing cost—be sure to keep a close eye on the overall return on investment (ROI) of your marketing strategy.
• Overhead: Rent, utilities, taxes, business insurance, and website domain fees are large and recurring business expenses to budget for.
• Payroll: Paying your employees (and yourself) is another recurring cost to keep in mind, especially as you grow and add new workers.
• Inventory: When selecting suppliers, consider product unit costs and potential bulk discounts as well as shipping costs, payment terms, and return policies. Your inventory costs will also include holding costs—all the expenses related to renting or maintaining space where your inventory is stored.

*Shopify Capital loans must be paid in full within a maximum of 18 months, and two minimum payments apply within the first two six-month periods. The actual duration may be less than 18 months based on sales.