PetSmart slows down

PetSmart recently announced it’s joining many other companies in cutting back on expansion.  The company will petsmartsharply reduce the number of new stores built and put “greater emphasis…on our current store base,” according to Chief Operating Officer Robert Moran.  Most of the new construction will be early in 2009, as the company had been on track to match its 100-new-stores-annually pace of recent years.  However, capital expenditures for 2009 will be down about 50% from the previous year, pretty much stopping new construction after Q1.         

                                  2009               2008               2007

Net new stores         40-42                104                   100

PetHotels built            20                    45                     35       

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