The pet product industry is doing quite well.  In fact, depending on who you talk to, they’re the 2nd largest growth market in Retail.

Like dollar stores and Wal-Mart, pet retail has been loping through the recession with its tail wagging.

The consumer determination to bunker in for the recession’s duration clearly encompasses man’s best friend and other assorted members of the domestic menagerie. Not only are pets getting treated the same as people, they may be getting treated better. While consumers trade down to private labels and forego restaurant visits, they seem to be spending more on pet edibles. According to Nielsen Co. data for supermarkets, drug chains and mass-market retailers, unit sales of pet food were actually down 3.2 percent for the 52 weeks ended April 18, 2009, but dollar sales were up 11 percent.

Specialty stores are among the beneficiaries of the trend. In the first quarter, PetSmart’s 37 cents per share earnings beat per share profits in last year’s quarter, which came in at 32 cents, its own guidance of 27 to 31 cents and the consensus analyst estimate of 30 cents.

via Pet Products Woof Off Recession, So PetSmart Gains | BNET Retail Blog | BNET.