Historically consistent operating performance Good credit measures for the rating category Competition from the significantly larger discounters Softening sales trends Standard&Poor's Ratings Services' ratings on Phoenix-based PetSmart Inc. reflect the risks associated with the highly fragmented pet supplies retail industry, increasing competition from discounters and supermarkets, and softening sales trends. The company's established market position in the industry, solid operating performance, and good credit protection measures partially mitigate these factors. PetSmart is the leading specialty retailer of products and services in the $43 billion pet products industry. The company primarily competes with PETCO Animal Supplies Inc. (B/Stable/--), but its other competitors include supermarkets, mass retailers, warehouse clubs and other specialty pet supply stores, veterinarians, and independent pet stores.
