Macro-Economic Indicators of Performance and How Recent
Despite a serious recession, the American Pet Association estimates that Americans are still spending on pets and that this spending is almost double of that a decade ago (Bloomberg Business Week, 2011). PetSmart is according to all accounts doing particular well. In fact, analysts admit their capability in directing traffic to their industry despite the gloomy macroeconomic environment.
This is due to the fact that PetSmart consults relevant economic indicators and directs its business plans and objectives accordingly. It does this by controlling expenses as well as by attracting traffic through sales and other promotions. There is also the "need-based nature of pet food" which, makes the pet sector, although discretionary spending in many areas, necessary spending in others, particularly with those who are devoted to their pets (ibid.). By focusing on necessary needs and cutting down expense and assisted in this by relevant economic indicators, PetSmart continues to grow despite the recession whilst competitors such s Petco droop.