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China’s Pet & Fresh will be shutting down all of its physical stores by mid-December due to increasing operational challenges, while continuing its online operations, according to the company’s founder. This decision marks a significant change from the company’s original growth plans, which included launching its first store in February and aiming to establish a network of 100 outlets throughout Shanghai within the year. The move comes despite strong investor interest, including a record-breaking $25 million angel investment in May. The founder also previously created a major grocery platform owned by a leading tech conglomerate.
Currently, the brand operates over 10 stores in Shanghai, but seven are now listed as either “temporarily closed” or “permanently closed” on online review platforms. Store staff have reported low customer foot traffic and sluggish sales, with many pet owners now preferring to shop for supplies online.
Nonetheless, sources familiar with the company indicate that overall operations remain stable. The founder confirmed that the company will persist with its online business and is exploring new future developments. He mentioned that each Pet & Fresh store previously required an investment of approximately 500,000 CNY (roughly $70,350), with a return on investment expected within 12 to 18 months.
China’s pet industry has seen its market value exceed 300 billion CNY (about 42.2 billion USD) in 2024, with urban pet food consumption, especially for dogs and cats, increasing by 7.5 percent. Industry experts believe there is significant potential within the sector, though the business models and formats still need careful experimentation and refinement.
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