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Inside Petco's Shop-in-Shop at Canadian Tire

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Petco Health and Wellness has doubled down on its retail partnership with Canadian Tire Corp. (CTC) by expanding its exclusive store-within-a-store experience inside the Canadian lifestyle retailer’s stores.

This investment enables CTC to further tap into Canada's $5.3 billion pet market and expand its exclusive Petco product assortment through a dedicated store space, according to a news release. The Petco shop-in-shops are now present in more than 80% of Canadian Tire stores, with that number slated to grow to 90% by the summer.

"With 60% of Canadian households home to a family cat or dog, pet is an important product category with strong potential for growth rooted in value, relevance and trusted brands for our customers," Michael Magennis, Canadian Tire Retail senior vice president, general merchandising, said in the release. "Since partnering with Petco in 2018, we have seen double-digit growth in the category with a marked increase in customers shopping the pet category for the first time."

The expansion brings Canadians access to a broadened and exclusive offering of Petco's pet products, including the WholeHearted private label of premium pet food and treats, and popular lifestyle and fashion brand for pets Reddy

The shop-in-shop experience also includes additional Petco brands, including SoPhresh pet litters and accessories, and Well & Good, a pet care line comprising expert-formulated first-aid solutions, remedies and grooming products and tools.

There is also a national brand presence in the shops. For example, there are branded violators as well as a dedicated endcap merchandising Blue Buffalo pet food and accessories under an illuminated light to showcase the products.

The dedicated space also employs large permanent signage above aisles and shelving that identifies the brands merchandised, including Nestle’s Purina One, Mars’ Greenies and Petco’s WholeHearted. In-aisle signage and violators also promote the brands carried in-store.

Notably present are large illuminated signs depicting cats and dogs alongside messages such as, “That’s how we say hello” and “Did someone say ‘treat?’”

CTC says its investment in the pet category is a core part of its renewed Canadian Tire store concept and broader product assortment being rolled out as part of the company's “Better Connected” strategy.

"Canadian Tire's legacy as one of the go-to retailers for living, playing, fixing, automotive and seasonal products have cemented them as a household name in Canadian homes,” Petco’s chief merchandising officer Amy College said in the release. “Through our exclusive expanded partnership with Canadian Tire, we're growing awareness of, and access to, Petco's health and wellness products within Canada's dynamic and rapidly growing pet market.

"Four years after our teams brought this exciting and innovative concept to pet parents, the continued growth of our partnership speaks to pet parents' deep confidence in Petco's pet care expertise, as well as the power and reach of Canadian Tire's connection with the local market.”

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