Pets at Home has issued a warning that "urgent and necessary" actions are required to revive the company's retail division, as it disclosed a more than one-third drop in half-year profits.
Ian Burke, who stepped in as interim executive chairman following the sudden departure of chief executive Lyssa McGowan in September, stated the group was "returning to our retailing roots" in an effort to rejuvenate the chain's fortunes.
The retail arm of Pets at Home saw underlying profits plunge by 84.1% to £3.5m in the six months leading up to October 9, counterbalancing a robust performance from the veterinary business and resulting in an overall group profit decrease of 33.5% to £36.2.
Mr Burke commented: "For over 30 years, Pets at Home has been a business with a clear purpose, an established market and loyal customer base, but it's clear that urgent and necessary action is needed to return the retail business to growth to meet both our own expectations and those of our investors.
"I've spent time visiting over 100 pet care centres and engaging with colleagues at all levels of the business to establish where the challenges are isolated, resulting in the implementation of a retail turnaround plan with four clear priorities of product, price, execution and cost.
"We are returning to our retailing roots to stabilise and rebuild momentum in our retail business, and to lay the foundations for a new chief executive in due course."
The group stated that cost reduction would form a central element of its retail turnaround strategy, targeting overhead savings of approximately £20m.
The company revealed it had already started implementing a "leaner store operating model" earlier this year, whilst also examining opportunities across purchasing operations, store leases and distribution automation.
"We will continue to look for ways to optimise our cost base either through reducing costs or redirecting them to areas that benefit customers," the firm said.
Half-year figures demonstrated that retail consumer sales declined 2.3% during the first six months, with accessories falling 5.9% and food down 0.3%.
However, veterinary business sales rose 6.7%, with underlying profits in that division climbing 8.3% to £44.9m.
The company maintained its recently revised annual profit forecasts for underlying pre-tax profits of £90m to £100m, representing a significant drop from the £133m achieved in the prior year.
The business confirmed that the search for a new chief executive was continuing to "progress".
