Pets at Home becomes latest retailer to return business rates relief
Pets at Home has joined the Covid repayment train and joins some of the UK’s biggest retailers in handing back millions of pounds in business rates relief.
In March, all retail, hospitality and leisure businesses in England were given a business rates holiday for 12 months.
But after a bumper year of sales on the back of a lockdown boom in pet ownership, Pets at Home has decided to repay in full the £28.9m of rates relief, despite spending an estimated £35m on Covid-related costs this year.
The decision follows pledges from the UK’s big four supermarkets, Aldi and bargain retailer B&M to pay back billions in tax relief.
Some retailers have been criticised for taking government help while paying out dividends. Pets at Home said it was “grateful” for the relief back in March but had made the decision supported by the “continuing strong performance of the business”.
Last week the FTSE 250 firm said its allocation as an “essential” retailer during lockdown had contributed 13 per cent to revenue growth in the second quarter.
Sales rose 4.2 per cent in the six months to October, with almost a third of all sales from the company’s pet care services.
“We were very grateful for the rates relief provided back in March during a time of significant uncertainty, which helped us to take the decision to keep our stores, online operations and veterinary practices open,” said chief executive Peter Pritchard. “Recent positive news around the launch of vaccinations for Covid-19 has led us to reassess the level of uncertainty ahead.”
Shares in Pets at Home are down 1.49 per cent at 392.28.