Q2 2025 revealed exceptional performance for the Pet Supplies category. Despite economic and tariff challenges facing the broader ecommerce market, Pet Supplies showed remarkable strength with sales growth significantly outpacing traffic increases.
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Key takeaways
Inventory surge supports growth: Q2 saw on-hand inventory increase 54.4% year-over-year, among the highest growth rates across all categories.
Pricing power remains strong: Unlike most categories facing price pressure, Pet Supplies increased average selling prices by 7% while reducing discounts.
Advertising investment accelerated: Ad spend increased 39.4% year-over-year as brands competed for visibility, though return on ad spend (ROAS) declined slightly by 3.2%.
Supply chain challenges persist: Revenue loss due to out-of-stock issues increased 28.7% year-over-year, despite declining RepOOS percentages.
Shifting fulfillment patterns: Filled units declined 30.6% year-over-year while fill rates reached 14-month highs, suggesting more efficient inventory planning.
