Jollyes CEO Joe Wykes outlines strategic priorities following acquisition by TDR Capital.
- The pet retailer focuses on expanding store locations and revamping existing outlets.
- Plans to strengthen customer relationships through enhanced loyalty programmes and improved product offerings.
- Ecommerce plays a minimal role, with brick-and-mortar expansion taking precedence.
- Jollyes is committed to maintaining low prices amidst market inflation challenges.
In a bold move that signifies a transformative phase for Jollyes, CEO Joe Wykes is preparing to significantly enhance the pet retailer’s market presence in the UK. This shift comes on the heels of Jollyes’ acquisition by TDR Capital earlier this year, with Wykes expressing a clear intention to develop the company into the ‘best value pets superstore’ nationwide.
Central to Jollyes’ strategy is a comprehensive expansion of its physical store estate, which includes refreshing existing locations and introducing new stores. Wykes has placed a strong emphasis on situating stores in optimal locations identified through demographic research, aiming to tap into areas likely to yield the greatest business opportunities.
Jollyes has made notable adjustments in its sales strategies, particularly in relation to product placement within stores. By shifting focus from larger stores to more efficiently sized units, the retailer has streamlined its offerings, moving away from live animal sales to focus on product value. This strategic decision is expected to free up space for further investment in customer value, aligning with the company’s growth objectives.
Wykes acknowledges the challenges posed by online retail, emphasising that the weight and cost of pet food complicate ecommerce profitability. Despite ecommerce accounting for a mere 1% of total sales, there remains a concerted focus on expanding the physical retail presence, with digital sales serving a supportive role. Wykes notes that a large proportion of online sales are generated within a short distance from their stores, highlighting the importance of localised service to their customer base.
Customer loyalty is a cornerstone of Jollyes’ business strategy, with the Pet Club scheme engaging over 1.1 million members, constituting about 80% of the customer base. Enhanced loyalty offerings and targeted promotions underscore Jollyes’ dedication to customer retention and satisfaction. The initiative is evolving under the guidance of TDR Capital, which is pushing for more customer-centric thinking.
Wykes remains focused on maintaining Jollyes’ position as a value leader in the market, even as economic challenges such as inflation impact consumer buying patterns. The retailer is keen on adapting its pricing strategies to remain competitive, with an increased emphasis on own-brand products, which have gained popularity as a cost-effective alternative amidst rising brand prices.
In navigating present challenges and opportunities, Jollyes aims to solidify its reputation as a leading value retailer in the UK pet industry.
