Watch out for Wal-Mart.

According to a number of sources, including many from within the company itself, Wal-Mart is making a greater commitment to the pet category. As we have written in this space before, industry insiders say that the giant chain is adding space to accommodate more products and to make it easier to shop the pet category. Also, the company, they say, plans to do much more to promote the pet department through advertising and within the aisles.

As we keep saying, the reason behind Wal-Mart’s efforts in the pet aisle is simple: During tough economic times consumers turn to two things, their kids and their pets, and Wal-Mart officials want to make sure that when it comes to both of these categories they are on top of their game.

You should be too. Even with this tough recession, the pet category is managing to hold onto a significant amount of its sales, thanks in large part to shoppers’ desire to make sure that their pets are well cared for. Pet food sales, in fact, have more than held their own during this economic downturn, though some customers seem to be trading down a bit on price. Pet supplies are also holding on, with many pet owners continuing to purchase the necessary items to keep their animals healthy, safe and entertained.

So what should you do to compete against Wal-Mart? The first thing may be to steal a couple of plays from the chain’s own playbook. Wal-Mart has made it clear that it plans to expand its product selection in several key areas, while eliminating slower moving and less popular areas. That may not be a bad idea for an independent pet operation, though it is important to also remember that your selection can be more specialized than Wal-Mart’s.

Second should be an emphasis on creating excitement in the aisles. Wal-Mart is adding signage and displays to catch the consumer’s eye as she shops the store. You should be doing the exact same thing, though on a different scale.

Finally, you must remember that independent pet retail operations will always have the ability to offer service and expertise, two extremely important factors that a behemoth like Wal-Mart can never match. Play that up as much as possible and make sure the customer is always aware that when they need a question answered, you are the one with the answers.