Unfortunately for its shareholders, year-to-date the Greencross Limited (ASX: GXL) share price has been amongst the worst performers on the market.
Following a 2% decline on Friday, the integrated pet care company's shares have now lost 16% of their value since the start of the year.
Why are its shares lower?
Due to its strong retail presence through its Petbarn stores, Greencross' shares appear to have been caught up in a broad retail sell-off ahead of the expected arrival of Amazon in Australia.
Whilst Amazon opening up on Australian soil will no doubt shake up the retail industry, I don't believe it will impact Greencross as much as it will retailers such as JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN).
Especially with the company accelerating its co-location strategy which will see veterinary services offered within its retail stores.
Not only will this bring more and more pet owners into its retail stores and allow for cross-selling opportunities, but it will allow its businesses to share overheads and is a cheaper way for the company to expand its veterinary clinic footprint compared to acquisitions.
Another reason not to be overly concerned in my opinion is the lack of impact e-commerce has had on the industry to date. At present e-commerce only accounts for 3% of the $9.5 billion pet care market in Australia according a report by the AFR.
Should you invest?
With its shares changing hands at 15x trailing earnings, I think now would be an opportune time to make a buy and hold investment.
An added bonus is that its shares provide investors with a trailing fully franked 3.3% dividend. This in my opinion means its shares provide a great mix of value, growth, and income.
