Barack Obama won the presidency under the mantra of “hope” and “change.” But pet store owners aren’t so sure they’re going to like his changes—and they’re feeling more worried than hopeful about effects on their business.

“I was for change,” said Jennifer Scott, co-owner of Pawprint Market (New Darien, Conn.), “but I’m not necessarily certain the new administration is the change I wanted.”

Fear of increased taxes is high on most retailers’ list of concerns. “Small businesses are the first ones to be taxed the most, and we also have to worry about health-care issues,” said Gail Finowitz, owner of The Prince and the Pawper (Ocean Township, N.J.).

Larry Greenberg, owner of Animal Magnetism (Naples, Fla.), also is worried his taxes might increase under the Obama administration, despite campaign promises that only those who make more than $250,000 would see a tax hike. “A week before the election, he changed that $250,000 to $100,000. Who knows what it’s going to be? It will definitely affect individuals and Sub S corporations. What about [other] corporate returns?”

Bruce Longwell, senior manager of The Fish Connection (Durango, Colo.), has questions, too. “Does that [amount] refer to gross income or net profit? Yeah, we clear [$250,000], so it would affect us.”

Dick Frederick, co-owner of Carousel Pet Supplies (Jefferson City, Mo.), is one of several retailers who also worry that Obama’s plan to provide affordable health-care coverage to uninsured workers might require more of them than they could manage. “If we had to pay for everybody’s insurance, I would have to fire everybody or close my doors,” said Frederick. “I can barely afford my own.”

The idea that government should guarantee health care troubles Longwell. “Here in Colorado, legislation was just defeated that would have required me to provide health care. I would have had to cut back on my number of employees to where I didn’t qualify. We could do a lot better, but nationalized health care is not the way to go.

“Usually when the election is over,” he added, ‘it’s back to business as usual. This time I see a lot of downhill trends. Granted, the market was in bad shape already, but this is the worst post-election market we’ve ever seen. I’m really scared about what’s going to happen.”

Their trepidation mirrors results of a poll conducted shortly after the election by SmartBrief, a Washington-based publisher of business-to-business e-newsletters in 20 key industries. The poll, answered by 1,601 respondents, found that 43 percent of executives felt their business would fare worse under the Obama administration. Only about 29 percent were optimistic or felt they wouldn’t be affected, with the remainder neutral.

In addition to worrying about the new administration’s effect on the general business climate, some pet retailers who sell puppies and other pets also are concerned it could pave the way to extreme laws regarding animal sales. “That’s certainly possible,” said Greenberg. “If more rampant liberalism takes hold, then certainly the more radical as well as the more moderate pet organizations could certainly get some legislation through that would harm the business.”

But Scott, whose store is based in Fairfield County, Conn.—where a significant percentage of the population work on Wall Street or in real estate, she said—was less concerned about the results of the Nov. 4 election than the stock market meltdown that preceded it. “I haven’t given it much thought. I’m just busy trying to fight what the stock market’s done.”

Her customers are still buying premium food, she said, but cutting back on everything else. “There’s been a definite change in buying habits in the last six weeks. Customers are much more conservative.”

Ultimately, whether an Obama administration can reverse that trend and set the economy on the road to recovery is impossible to predict, said several retailers.
“He didn’t even finish his first term as a senator. I have no idea what he will do,” said Frederick.

Finowitz, for her part, is taking a wait-and-see approach.

Longwell, a self-described capitalist, is just hoping for the best. “I just don’t like an awful lot of his agendas and policies,” he said. “[But] I really hope he does well. It would be great.”

—Cathy Foster [January 2009 PET AGE]