"I see GXL more of a vet than a retail stock. Most of their...

"I see GXL more of a vet than a retail stock. Most of their revenue is derived from their vet clinics."

I'm not sure why you hold that view - in FY16, GXL earned $72m EBITDA from its retail business, and $25m EBITDA from the vet business (EBITDA being pre exceptional items). So I think it's fair to think of GXL first and foremost as a retail stock given that ~3/4 of their earnings are based on the retail component of the business.

"Plus retail spending for pets are quite inelastic and people tend to spend the same on pets even during a recession."

I'd say spending on pet goods is perhaps less elastic than, say, spending on bulky household goods (like furniture), but i wouldn't say it's inelastic and can't fall during a recession. For example, in FY16 same store sales in GXL's WA retail shops went backwards (because WA was in a post mining boom recession).