Musti as an investment
Musti’s strengths include its leading market position in the in the Nordic pet care market, winning concept, strong customer focus, integrated and comprehensively invested backbone and passionate personnel.
Clear market leader in the attractive Nordic pet care market
The company is the market leader in the growing and resilient Nordic pet care market, with a market share of 24%. The company has achieved market leadership through the ability to offer expert advice, a more diverse range of higher quality products and better convenience combined with an enjoyable shopping experience that cater to Pet Parents’ needs and characterized priorities. Combining the increasing number of Pet Parents over recent years with Musti’s unique concept has allowed the company to continuously gain market share from groceries and small independent pet speciality companies across its markets.
Trusted expert advice driving customer satisfaction and loyalty
At the core of Musti’s concept stands trust and the experts advice offered by Musti’s store personnel (“Musti Experts”). The company has been able to consistently attract, recruit and retain passionate Musti Experts that have deep knowledge about pets. Through their special know-how, the Musti Experts are able to recommend the most suitable products to the customers, further driving customer satisfaction, trust and loyalty.
Diverse, high quality offering with strong own brands
Musti has a wide, curated assortment of own products in both food and non-food categories, geared specifically towards Pet Parents’ needs. Additionally, the Company differentiates well against its competitors in breadth and quality of its assortment. The company’s product offering generally “starts” where the grocery products “end”. Musti also has a clear strategy of focusing on own and exclusive brands (“O&E”) that are only sold through Musti. These O&E products offer higher margins, differentiation, transparency and pricing power.
Seamless omnichannel business model ensuring total convenience for customers
Musti’s omnichannel business model combines the convenience of both store and online purchases. Stores provide an essential and convenient touch point and allow Pet Parents to explore products, receive trusted advice from Musti Experts and access pet services. The physical in-store offering is complemented by Musti’s online channel. The broad, locally curated online assortment, local customer support and fast home delivery differentiate the company from its competitors.
Growing suite of services
In response to demand for services for pets, Musti is increasingly rolling out service locations as part of its customer proposition. As at the end of the financial year 2019, the company actively operated services across 39 of its own stores. Services include grooming, training and massage as well as diet services, and the company also provides veterinary services in some selected stores. In addition to commercial services, Musti also provides services that aim towards building an engaging community around Musti and enhancing customer satisfaction, such as puppy dates.
Strong customer focus and advanced capabilities in leveraging customer data
Musti’s Loyalty Club is the largest pet loyalty club in the Nordics. The Loyalty Club is designed to serve as a platform in engaging with customers and to provide them with better customer service. Through the Loyalty Club, Musti is able to leverage data to truly understand its customers’ behaviour and provide them with relevant, targeted communication.
Integrated and comprehensively invested backbone
During the financial years 2017 and 2018, the company has conducted a significant IT renewal and centralisation of logistics, eliminating the need to make major IT and warehouse investments in the near future. The company invested more than EUR 15.2 million to upgrade the Group wide IT infrastructure platform and core solutions1. Having undergone a significant logistics consolidation to one central warehouse in Eskilstuna, Sweden and six outsourced warehouses, the company has been able to improve delivery times.
Passionate personnel led by an experienced management team
The highly engaged, motivated and well-trained Musti Experts are a key element of Musti’s culture and are fundamental to the success of the company’s business model as well as an important competitive advantage. Employee satisfaction is very high, evidenced by low employee churn of 12% in Finland and Sweden and 17% in Norway in the financial year 2019.2
Musti has upgraded its management team over the past three years by making critical hires to ensure modern retail competences in order to succeed in the future and to ideally position the company for the next phase of growth. The company’s management team has an impressive depth of knowledge with more than 150 years of combined retail experience. The company’s Board of Directors is highly experienced within e-commerce and pet care and possess the expertise for guiding the company to the future.
*Based on a personnel survey by the company in 2019, respondents consisted of 664 Musti employees from Finland, Sweden and Norway. Pet Parents are defined as pet owners who are passionate about their pets, spend on their pets per annum is higher than market average, and they are quality focused. Pet Parents are not an exclusive demographic.
1Based on FAS capex without leasing.
2Employee churn is measured by number of terminated employments divided with average number of employees.