Musti ja Mirri is a specialty pet supply retail chain founded in 1988. There are over a hundred stores across Finland, from Helsinki all the way to Rovaniemi. Musti ja Mirri is the largest pet supply chain in Finland and across all of Scandinavia.
The majority of our products are for dogs and cats, but there are also dedicated product ranges for rodents, rabbits, aquarium fish, and birds. In addition to the online store, every Musti ja Mirri store carries a basic selection of the same products, and each store also expands its selection according to demand.
The product range covers dry and wet food, cat litter, and a wide selection of accessories from collars to bowls and toys to grooming products. Products are also available for pet owners, such as training vests and treat bags. As a pet supply chain, Musti ja Mirri stores do not sell animals at all, but only food and supplies for the everyday well-being of pets.
I’m personally interested in the pet market. People love animals, and as people get wealthier, they have more money to spend on their dogs and cats. Of course, one has to look at the possible IPO price, but I believe in the company’s industry growth in the long term.
I will check out M&M’s cold numbers and make a decision based on that, but I don’t see much appeal in it as a business.
In our family, we spend absurd amounts of money on animal welfare. However, I don’t see any differentiating factor in M&M that would attract customers. Even high-quality pet food is a bulk product that should be ordered in large quantities from a low-margin online store at once. Other supplies cost peanuts and can be bought from supermarkets without the hassle of a separate trip. Service that goes beyond the information available online and general experience can be obtained from a vet.
I would be very interested if a veterinary chain were to be listed… based on the pile of bills, it must be a gold mine.
Big profits are in the pet business, and that’s how Musti&Mirri has grown. Margins are much higher than in regular retail. Dog food is quite expensive per kilo. And treats, bones, etc. even more so! I’ve always thought someone must be making a fortune from this! Well, Musti&Mirri’s CEO did get rich pretty quickly.
But can they really go far with just pet food and toys/supplies? Would there be growth opportunities in offering pet care/pet hotels? What about other services?
As a dog owner myself, I spend quite generously on everything related to my dog. But in fact, Musti&Mirri is one store that hasn’t gotten any of my money. I can’t say why; I have nothing against the store, I could very well buy from there. I can’t analyze why they haven’t reached me
I’ve always loved Musti&Mirri’s logo so much I always feel happy when I see that logo, it’s such a cheerful logo.
As I recall, verkkokauppa.com entered their territory a couple of years ago, and that’s when M&M started appearing everywhere. It smelled to me like they realized they would soon be left behind as both domestic and foreign online stores took market share with their lighter costs, or at least squeezed margins, until their brick-and-mortar presence started sinking the whole business to the bottom of the pond. And immediately, intense preparation for a public listing (on the stock exchange and soon) before there was nothing left but a picked-over bone.
In reality, I believe in the pet business because, for example, dogs have become “second” children, and people readily pour money into their affairs…be it psychology, physiotherapy, premium food, or accessories. However, I believe that online commerce (both domestic and foreign), in addition to supermarkets, will likely draw the longest straw in the long run in this round, because this is just an additional section in their machinery that will run with nearly existing costs, unlike M&M. It’s always the case that where there are high margins, there is also growing competition, and those high margins are hammered down to the bottom in that war, to the buyer’s delight. (Unless you happen to be a pharmacy or a transmission network company.)
Absolutely! A vet chain, or possibly a dog boarding chain, that then franchises… A proper brand (one that evokes a premium, warm, gentle, expert, and loving care facility) is needed in every village, and then after a while, shops in the Kotipizza style will be set up by others with a ready-made concept. Keeping a dog in a kennel is a hellishly expensive business, and people travel, so there’s a need. Some would probably even bring them for daycare
The expectation is that the offering will be priced in such a way that it’s not at all interesting. For a low-growth brick-and-mortar boutique like this, the P/S ratio should be well under 0.5 in the offering, and with a turnover of around 250 million, that means a valuation of just over 100 million.
That dismissal of brick-and-mortar stores has gone a bit too far in the US. For example, CONN is falling day after day, even though its P/E is only a little over 3 and P/S is 0.17 (72 percent short, a squeeze might be coming soon ). With similar numbers, I could probably put a bit more into Musti ja Mirri already.
Doesn’t taste good. As a two-dog owner, I almost never shop at M&M, even though there’s one nearby. Dog food and supplies are bought online. Chews and toys can be found cheaper at places like Puuilo.
I didn’t know that, thanks for the info. Based on the search, however, there seems to be only one location for veterinary services.
I suspect that organic growth in the industry is challenging because customer relationships are long-term and somewhat binding. And the most profitable players are those who have built a reputation with specialized expertise.
It’s unlikely that anyone would ever list a good veterinary chain for any reason other than to cash in, because capital requirements are negligible.
Interesting to follow. The veterinary sector might experience the same phenomenon as human healthcare, with chains merging into larger entities. Terveystalo and Mehiläinen might be out of this, as it could be difficult to market veterinary and human medical services from the same counter. But who knows.
Chaining and chain consolidation have already been seen in veterinary services. In Finland, for example, Animagi bought practices, and in 2015 the chain was sold to Evidensia, which is the largest operator in Europe.
Information about Musti Group’s listing terms. The preliminary price range of 5.65-9.35 euros per share stands out. That is, without exaggeration, wide. The increase from 5.65 euros to 9.35 euros corresponds to approximately 65%.
But I’ll post here if one becomes available.
Well, Musti&Mirri’s CEO did get rich pretty quickly.
). With similar numbers, I could probably put a bit more into Musti ja Mirri already.