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Dogonomics: Can our four-pawed friends be good for local economies?

JenniferTankardDog ownership has steadily risen since the mid sixties. There are currently 8.5 million dogs in the UK with one in four households counting a pooch as part of the family.

This rise in dog ownership is accompanied by a rise in spend. The ‘hound pound’ is much sought after business.  Despite the recession, the pet industry has seen a steady 7.5 per cent growth year on year and the pet accessory market is now worth over £500m alone. According to Mintel, four in ten pet owners agreed that they would rather cut back on their own food before cutting back on their pets.

It is no surprise that retailers are rushing to cash in on the market with the widely publicized launch last year of pet accessories sections in John Lewis stores. And its not just shops that are after the hound pound.  The Metro Bank is proud to declare itself dog friendly, cheerfully announcing that ‘we are all about convenience and being a dog-friendly bank is part of this.  Bring your dog in when you next visit – we’d love to meet them’. They offer fresh water, treats and have a link up with Battersea Dogs and Cats’ Home refunding new and existing Metro Bank customers when they rehome a dog or a cat.

But can local economies benefit?  According to Euromonitor, supermarkets and hypermarkets remain the major distribution channels for sales of pet-related goods, accounting for half of all sales.  Pets at Home, one of the main players in the market, opened its 350th UK store in 2013 and has ambitious plans for new store openings and expanding services such as in-store veterinary care and grooming. But it seems that small independent retailers are also doing well. Research by the Local Data Company showed a rise in the number of independent retailers opening up in 2011 with pet shops one of the most common types of new independent store.  There is also a cottage industry of dog services, with grooming parlours, doggie day care and walking and dog training all providing local jobs and income.

And pet friendly places are popular with the general public.  The Kennel Club reports that 95 per cent of people think more businesses and locations should be ‘Open for Dogs’, and that dogs improve the atmosphere of a place. Its ‘Open for Dogs’ campaign, to encourage more dog-friendly businesses and work places, claims that dogs in the workplace make employees happier and boost productivity.  The health benefits of pet ownership are also well documented.

But there are costs incurred to the public purse.  Havant Council, serving a dog friendly corner of Hampshire (boasting a dogs’ swimming pool), estimates that costs of dealing with strays is around £14,000 a year, although nearly 50% of this is offset by charging those who later reclaim their dogs or rescue the strays.  Other costs such as cleaning and emptying dog bins are contained within general waste budgets.

So could local economies do more to benefit from the hound pound?  They certainly can. Encouraging local businesses to become dog-friendly can only result in the sound of the hound pound ringing in the tills.

 

 

 

 

 

Jennifer Tankard
Jennifer Tankard is chief executive of Responsible Finance
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