Pets at Home said it has received a “positive customer response” after it cut prices earlier in the year.

The FTSE 250-listed company cut some of its prices earlier this year in a bid to rekindle some growth at the top line, a move which seems to be paying off.

Total group revenues increased by five per cent to £256.5 million in the 16 weeks to July 20, backed by robust growth in both its merchandise and services divisions.

Merchandise – which accounts for around 80 per cent of the business – saw revenues grow by 2.8 per cent in the period, while the smaller services division – which includes its vet practices – saw sales rise by 18.8 per cent to £40.1m.

Five new Pets at Home stores, two Vets4Pets practices and six Groom Room salons opened during the quarter, with a further 10 superstores, 40 to 50 vet practices and 40-50 grooming salons expected to open during the current financial year.

Excluding the impact of those new openings, like-for-like sales added 1.5 per cent in merchandise and 10.5 per cent in services.

Ian Kellett, Pets at Home’s group chief executive, said: “We are pleased with our positive start to the year, delivered through another period of strong growth in our Vet Group and further momentum in merchandise trading.

“We have continued our everyday lower price repositioning and reduced the reliance on short term promotional discounts. We remain encouraged by the overall response to our pricing changes and by the number of both new customers and those we have welcomed back.

“We are confident the investments we are making to grow our veterinary business and to reposition our pricing and deliver everyday value for our customers are creating a strong platform for sustainable future growth.”