Retail giant Walmart is expanding its pet business through the launch of Walmart Pet Care, an omnichannel offering that will bring a new range of services to 90 million pet owners. The announcement comes at a time when the demand for pet products and services is growing rapidly amid the pandemic, which has also been benefiting companies like Chewy.
Walmart’s (WMT) new pet care offering will include Walmart Pet Insurance in partnership with Petplan, a North America-based injury and illness pet insurance provider for cats and dogs. The retailer’s customers can save up to 10% on their policies and sign up an insurance plan that will cover veterinary fees due to accident, injury or illness, including chronic and hereditary conditions.
Customers can also use Petplan’s digital service to file their insurance claims and schedule appointments. Moreover, each pet insurance policy will include access to $1,000 worth of online virtual vet appointments at no additional fee.
Walmart Pet Care will also include pet sitting and dog walking services through Rover, an online site and app that provides access to pet sitters and dog walkers from more than 300,000 providers. The retail giant’s customers who book pet services through Rover will receive a $20 Walmart gift card for their first completed service and another $20 Walmart gift card if they complete their fifth service within six months.
Overall, Walmart Pet Care along with the company’s assortment of over 1,800 premium and specialty pet products as well as the expansion of in-store vet clinics is expected to boost the retailer’s prospects in the lucrative pet business. (See WMT stock analysis on TipRanks)
Ahead of Walmart’s earnings release on Nov. 17, Jefferies analyst Stephanie Wissink raised the stock’s price target to $170 from $165 and reiterated a Buy rating amid expectations of “solid” 3Q results. Wissink’s analysis of alternative data sources supports her view that the company’s comparable sales improved through 3Q. The analyst notes that her U.S. same-store sales growth estimate of 4.5% is above the 3.8% consensus estimate.
The rest of the Street in line with Wissink’s bullish outlook. The Strong Buy analyst consensus boasts 21 Buys vs. 6 Holds. With shares up 24.7% year-to-date, the average price target of $150.78 implies a modest upside potential of 1.7% in the 12 months ahead.
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