Total U.S. Sales
$6.3 billion in fiscal year 2023 (ended Feb. 3, 2024)
Total Stores
More than 1,400 in 50 states, Puerto Rico and Mexico (as of Feb. 3, 2024)
Headquarters
San Diego
Key Facts
- Went public (again) in January 2021
- Stocks 10,000 pet care SKUs
- Has 25 million active customers
- Has more than 500,000 Vital care Premier memberships
- Operates approximately 65 smaller format neighborhood stores under the Unleashed by Petco banner
- Offers services including grooming, dog training and in-store vaccination clinics
- First pet products seller to partner with Shipt
- Operates the nonprofit Petco Foundation
Key Executives
- Interim Chief Executive Officer: R. Michael Mohan
- CFO: Brian LaRose
- Chief Human Resources Officer: Holly May
- Chief Administrative Officer: John Zavada
- Chief Stores Officer: James Roth
- Chief ESG & Communications Officer: Benjamin Thiele-Long
- Chief Merchandising & Supply Chain Officer: Amy College (until Aug. 17, 2024)
- Chief Strategy Officer: Soumik Chatterjee
- Interim Chief Merchandising Officer: Shari White
- Senior Vice President of Merchandise Planning, Inventory & Supply Chain: Tim Buckenberger
- SVP, Services: Stephen Reyes
- Vice President, Digital: Steve Janowiak
- President, Petco Love: Susanne Kogut
- Market Position and Strategy Overview
- Must-Know Terms
- Promotional Strategy
- Merchandising
- Collaborative Alliances
- Displays and Signage
- In-Store Media
- Store Formats/Growth
- Special Departments/Services
- Customer Segments
- Internet Marketing
- Retail Media
- Mobile Marketing
- Social Media
- E-Commerce
- Circulars
- Loyalty Programs
- Private Label
- Cause/Community Programs
- Advertising Strategy
- Solution Providers
- Sponsorships
- Marketing Expenditures
- Metaverse
Market Position and Strategy Overview
Market Position and Strategy Overview
Petco operates more than 1,400 stores spread across the U.S., Puerto Rico and Mexico, including some 85 smaller format neighborhood-style Unleashed by Petco stores.
Petco stores have long striven to offer everything a pet owner could need, selling toys, apparel and a wide variety of national-brand and private-label pet foods while also providing dog training, grooming salons, veterinary clinics and adoption centers. The retailer is also experimenting with in-store veterinary hospitals, planning to open approximately 50 vet hospitals and 10 to 15 rural locations in 2023.
Yet under chief executive Ron Coughlin, the retailer began curating the assortment with pet quality of life in mind. As other channels started stocking the premium pet brands that have traditionally gotten shoppers to make extra trips to pet stores, Petco raised its nutrition standards and stripped its shelves of dog and cat food and treats containing artificial colors, flavors and preservatives. The retailer's elevated assortment rivals that of specialty shops with new options such as both prescription and human-grade pet food. Further trimming its offering in its effort to be seen as a trusted resource for pet owners, Petco has also eliminated shock collars and hard-to-digest rawhide from its shelves. Coughlin also has publicly made it his mission to eliminate unnecessary euthanasia.
Introduced in 2020, the retailer's new "The Health + Wellness Co." epiteth emphasizes the chain's evolved focus on becoming a health and wellness company that is improving the lives of pets, and goes hand in hand with a refined “Whole Health” approach intended to provide a clear framework for consumers to act in the best interest of their pets by providing products and services aligned to meet needs across all five interconnected dimensions of health.
Private labels are another way the retailer tries to distinguish itself from channel leader PetSmart, and Petco has been aggressively expanding its offerings through licensed lines and a wide selection of pet foods, supplements and grooming products to meet the needs of customers concerned about their pet's nutrition and complete wellness.
In addition to selling products and providing educational articles through petco.com, Petco owns e-tailer LiveAquaria.com, pet care information resource PetCoach and pet insurance marketplace PetInsuranceQuotes.com.
Looking toward 2024, Petco continues to focus on enhancing its online and in-store shopping experience, keeping inventories well stocked and making omnichannel delivery seamless.
The retailer was the first pet products seller available through Shipt when it began offering deliveries in as soon as one hour in April 2019, before rapidly expanding other fulfillment capabilities in 2020 in response to the COVID-19 pandemic.
That was also the year during which Petco was gearing up for its IPO. During the third quarter of 2020, Petco had deployed a marketing campaign touting the science behind several of the pet food brands it sells as it continued to spotlight the new nutrition standards it had implemented the prior year. Pitching itself as a much-improved, category-defining health and wellness company for pets, the retailer went public (again) in January 2021.
Must-Know Terms
Must-Know Terms
- Doctors Foster and Smith: A health-focused private label brand sold in stores.
- PetCoach: A pet care information startup purchased by Petco in 2017. The retailer opened an experimental PetCoach store in 2018.
- Whole Health: The retailer's refined market approach, intended to provide a clear framework for consumers to act in the best interest of their pets by providing products and services aligned to meet needs across all five interconnected dimensions of health
Thought Starters
- Petco repositioned itself as a leader in pet nutrition when it declared new higher standards for pet food and treats.
- Petco also continues to position itself as a general educational resource for pet owners so in-store displays often tout the benefits of specific products.
- The retailer has made e-commerce a major priority, purchasing multiple online retailers while also offering one-hour delivery service through Instacart.
- Exclusive products are always welcome as a way for Petco to distinguish itself from channel rival PetSmart.
- As part of exclusive product relationships, the retailer is open to stocking limited-time runs of items for humans on its shelves.
Promotional Strategy
Promotional Strategy
Petco focuses heavily on periodic discounts and promotions along with a steady stream of sweepstakes, contests and cause campaigns, which often rely on specialty pet brands to do the heavy lifting. The retailer also works to build trips by hosting a variety of in-store events such as crafts for kids and product demonstrations spotlighting both private label and national brands.
Petco attempts to turn new pet owners into loyal shoppers by giving away "Welcome to the Family" books that contain hundreds of dollars worth of coupons along with information on pet care.
For 2023, Petco has adopted an omnichannel Adobe Experience Cloud platform. One aspect gathers data in real-time to build a customer profile, make relevant recommendations and help drive consumer loyalty. Another aspect harnesses AI to learn and anticipate needs like vaccinations or grooming services and make suggestions as warranted.
Merchandising
Merchandising Strategy
Petco is focused on natural and premium pet food and treats along with other health-focused products including supplements and treats. While most store use bright primary colors, some recently remodeled locations have a more neutral and natural color palette.
Typical categories include apparel, food, treats, toys, grooming products, cat litter, cleaning supplies and training tools. Gondolas near the front of the store merchandise seasonal SKUs. Stores also stock premium cat litter that shoppers can scoop into reusable containers. Refrigerated displays merchandise raw foods and the retailer employs a salad bar-style "treat bar" near the store’s front.
PetCoach primarily stocks private label products but also carries a limited selection of SKUs from top natural pet brands.
In 2023, Petco partnered with dog nutrition brand Ollie to bring its human-grade fresh and baked food, treats and supplements to Petco. The products can be bought in-store, on petco.com, or on the Petco app.
In 2023 Petco partnered with Freshpet to offer a custom pet food subscription service. When pet parents enroll, they enter information about their cat or dog's age, breed, body type and along with other details. They then receive a personalized meal plan, with fresh-made and veterinary nutritionist-approved food delivered to their doors. The service is launching in 15 states, with plans to expand it nationwide.
Petco also unveiled its Clean Grooming initiative in 2023. A Clean Ingredients badge appears on the grooming salon menu, product shelves at its1,350-plus pet care centers, app, and petco.com/clean microsite, noting that the ingredients list includes no parabens, phthalates or chemical dyes. Self-serve dog wash stations also are being stocked only with Clean Grooming products.
Collaborative Alliances
Collaborative Alliances
Petco runs a few regular campaigns with brand partners but also has some long-standing collaborations.
Every May, for more than a decade, the retailer has held an annual Pet Cancer Awareness campaign with Blue Buffalo Co.
Petco also enters into new partnerships from time to time. In autumn 2023, leading into the holiday season, it announced collaborations with brands such as Barefoot Dreams, Kate Spade, Lambwolf Collective, Pets So Good, Modernbeast and Native Pet on bedding, supplies and toys.
Petco uses RangeMe to allow prospective vendors to share products with the retailer buyers. The retailer also uses a web page operated by Sugar Land, Texas-based Traverse Systems to share information with existing vendors.
Petco also works with other retailers to bring its products and services to a wider clientele, including:
- In 2023, the retailer expanded its partnership with Canadian Tire. By mid-year an estimated 90% (or 450) of Canadian Tire stores will house Petco shop-in-shops.
- Found My Animal x Petco, a limited-edition collaboration that includes pet attire and accessories. SKUs were available online and in select stores through August 20, 2023.
- In 2022, Petco and Lowe's piloted a store-in-store concept which features an assortment of services and products, including cleaning supplies, pet-friendly carpet, dog doors, pet beds and an assortment of Petco private label pet nutrition and health and wellness SKUs. After a successful pilot, the retailers plan to expand the program to nearly 300 stores — keeping the focus on rural communities.
Petco teamed with insurer Nationwide in January 2024, introducing a customizable pet health insurance offering on Petco.com. Customers can build a policy that fits the needs of their pet — which includes cats, dogs, and many avian and exotic animals — and their budget. Plans cover accidental injuries, but pet parents can opt for:
- additional coverage for veterinary expenses related to diagnosis and treatment of illness or disease, including ear infections, skin infections and cancer,
- reimbursement percentages ranging from 50% to 90% on veterinary expenses,
- flexible annual deductibles, and
- wellness coverage for routine exams, vaccinations, flea and tick prevention, dental cleanings and spaying/neutering.
The partnership also includes member savings on Petco Veterinary Services.
Displays and Signage
Displays and Signage
Endcap displays, racks, gondolas, shelf signs and power wings are the dominant forms of branded displays at Petco. The retailer expects brands to adhere to its seasonal design plans, with display color schemes largely uniform during the prime Halloween and holiday shopping seasons. The rest of the year most account-specific displays are focused on offering deals for loyalty cardholders and promoting new products. Loyalty deals are often promoted with endcap headers and shelf signs.
Petco's own programs and collaborative activity get significant supporting display space through posters, checkout signs, stanchion signs, standees and table displays. Some displays also promote in-store services, such as dog grooming or veterinary care.
Because of its strong emphasis on animal wellness, Petco stores use a significant amount of educational signage, often touting the benefits of a particular product. Violators are primarily used in-line while endcap displays use informative shelf blockers.
In-Store Media
In-Store Media
Petco does not have any third-party advertising opportunities.
However, the retailer recently launched targeted digital advertising opportunities through a partnership with CitrusAd. Petco is offering sponsored products and display ads across its e-commerce, desktop and mobile platforms, both as self-service and managed participation models.
Store Formats/Growth
Store Formats/Growth
Petco operates more than 1,400 Petco stores across the U.S., Mexico and Puerto Rico, including a growing network of more than 280 in-store full-service veterinary hospitals and 1,400 weekly mobile (Vetco) clinics. The retailer's flagship stores stock approximately 10,000 SKUs, covering the needs of cats, dogs, fish, reptiles, birds and small mammals. Newer or remodeled stores also have dog-training areas, adoption centers, veterinary clinics, in-store veterinary hospitals and grooming salons.
Union Square Flagship
Petco in 2023 relocated its NYC Union Square pet care center from Broadway to Union Square. The 25,000-square foot, two-story store features departments inspired by NYC, with premium pet goods, a full-service veterinary hospital, grooming salon, curated merchandise, and more.
Unleashed by Petco
Petco operates about 85 small-format Unleashed by Petco stores, which are meant to resemble a neighborhood pet store. Stores emphasize natural and premium products, hosting regular events to promote raw diets and new pet products. Services are another focus, with all stores hosting dog-training classes and vaccination clinics and some also providing $10 self-serve dog wash.
The retailer scaled back the format in 2016, converting 31 locations into small Petco stores based on insights on where the banner performed best. The retailer also eliminated the format's website, migrating the content onto petco.com. Unleashed by Petco openings also have slowed, though the retailer says that the format remains part of its growth plan.
Reddy
The first concept flagship for Petco's premium lifestyle private label for dogs opened in October 2021 in New York City's Soho district, promising an elevated shopping experience, curated Reddy merchandise including new products exclusive to the store, and pet-centric experiences. Described as an urban boutique inspired by industrial design and complemented by Reddy's bold color palette, patterns and textures, the store offers:
- a lounge area and adventure concierge equipped with a calendar of monthly activities in and around the city.
- a fitting station and custom services such as on-site monogramming.
- water stations, a "treatery" and whipped cream cups for pups.
- a JustFoodForDogs station offering a range of high-quality dog foods and treats formulated to meet specific, critical nutritional needs, as well as supplements.
- Instagram-ready walls, a "Bark Board" for community updates and a pet polaroid wall.
- Reddy Cat beds, toys, apparel and accessories.
Neighborhood Farm & Pet Supply
Designed to meet the need of pets and farm animals in small towns and rural communities, the first location of this new, community-driven test format opened in Floresville, Texas, in June 2022. The stand-alone location includes mobile vaccination and grooming services, self-wash stations and live companion animals, and offers local events and an in-store community board to foster connection but unlike flagship locations, this format stocks food and supplies for farm animals such as horses, cows, sheep and goats By the end of fiscal 2022, Petco had opened five stores in Texas, North Carolina and Kentucky.
Special Departments/Services
Special Departments/Services
Services are a key way that Petco builds trips and competes with online purchases. Most stores offer:
- Vetco veterinary clinics
- Grooming salons that provide dog baths, nail buffing and trims, haircuts, ear cleaning, de-shedding treatments and teeth brushing. Groomers also check the dog for health issues by performing a "7-Point Pet Care Check."
- Dog training areas.
Some recently remodeled stores also have:
- A concierge desk where shoppers can get advice on pet nutrition and training.
- A dedicated new product demonstration area.
- A "Critter Connection" zone where shoppers can play with their pets and test supplies.
Current and rebannered Unleashed by Petco locations have self-serve dog washes.
Petco is experimenting with offering more expansive veterinary services. Three stores in Texas and California were remodeled in 2017 and 2018 to add veterinary hospitals, which are operated by Thrive Affordable Vet Care or The Pet Vet.
Los Alamitos, CA-based JustFoodForDogs partnered with Petco in-store pantries and a first-of-its-kind exhibition kitchen in the retailer's flagshipn store in New York's Union Square to show shoppers how their pet food is made.
The PetCoach store offers grooming, veterinary care, training, a self-service dog wash, nutrition consultations and dog day care.
Customer Segments
Customer Segments
Petco targets shoppers who are committed to providing the best quality for their pets and consider them to be members of the family. PetSmart calls pet owners "pet parents" and tries to attract new customers by hosting adoption events and giving away free "Welcome to the Family" guides containing hundreds of dollars worth of coupons.
Millennials are the largest pet-owning population in the U.S., making them the most coveted group for the retailer. Petco has been trying to reach them with an omnichannel approach that makes e-commerce easy while drawing them into stores for events and services.
Internet Marketing
Internet Marketing Strategy
The home page of petco.com devotes plenty of space to spotlighting discounts on national-brand and private-label products through display ads that link to e-commerce pages. The website also provides ratings and reviews for products (with videos and photos), sales alerts, information on in-store services and events, and a "Petco Kids" section with coloring sheets and information on adding a pet to your home or classroom.
Petco has invested significantly in creating an online forum not only for buying pet products, but also for consumers to learn about pets and their care and share insights with others. A "Petco Community" forum on the website allows customers to interact on message boards divided by pet types: dogs, cats, fish, birds, reptiles and small mammals. It also hosts blog post and contests, which often have a seasonal focus.
Petco sends one to three emails each day, which primarily promote the retailer's e-commerce offerings but can also link to blog posts or the digital circular. Clicking on a particular deal in the digital circular leads to a page on that item listing the offer, showing the nearest store location and providing a link an e-commerce page for the category. The retailer regularly employs paid search.
Petco has expanded its digital footprint through the purchase of multiple online resources. In 2017, Petco bought PetCoach, a website and mobile application that allows consumers to ask veterinarians for advice and also hosts articles on animal health, care, nutrition and behavior. Petco purchased pet insurance marketplace PetInsuranceQuotes.com in 2018. The website lets consumers browse pet insurance coverage options based on price and reviews.
Retail Media
Retail Media
Trends Report
For the past three years, brand marketers asked to rate various retail media platforms for Path to Purchase IQ’s annual Trends Report have generally given the platforms good scores. In the magazine's 2022 Trends Report, 82% of participants who worked with Petco group gave the platform an "excellent/very good" for sales growth although nearly three-quarters noted the network's targeting effectiveness and sales growth needs to improve. (See chart below.)
![Petco Retail Media](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/rm-chart17.jpg)
Mobile Marketing
Mobile Marketing Strategy
The Petco app lets users create profiles for their pets to shop products based on animal type or brand, reorder past purchases, or manage repeat delivery orders. Users can also access their loyalty plan and find stores. In August 2023, the retailer unveiled an updated app that gives pet owners a centralized and simplified way to stay current on their pet's/pets' nutritional needs, vaccination history and grooming appointment reminders.
A PetCoach app, compatible with Apple iPhone, iPad and iPod touch, lets users ask questions about their pets and receive advice from veterinarians and pet experts about health, nutrition, behaviors and other topics.
Social Media
Social Media Strategy
Facebook: 3.04 million followers (as of April 2023)
- The retailer posts most days, promoting Petco-specific products, sharing cute pictures of animals — often tying in to current events — and informing consumers about operational updates. There are occasional links to Petco products and services. Most posts have few comments and likes compared to the account’s number of followers.
- The retailer uses the platform's "Shop" functionality to highlight national-brand and private-label products as part of seasonal collections, with room for the occasional brand spotlight.
- The Petco Love (formerly Petco Foundation) Facebook page has 175K followers (as of April 2023) and updates about once a day. Posts share stories of pet adoption and fostering, and promote fundraising products, including Bobs from Skechers items.
![Petco graphical user interface, website](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/screenshot_20210208-102120_instagram.jpg)
Instagram: 704K followers (as of April 2023)
- Activity largely mirrors Facebook thematically, including the built-in shopping functionality. Some posts themselves are also shoppable, often highlighting private-label pet accessories with direct links to e-commerce product pages.
- Stories host content grouped into categories such as “Clean Grooming,” "Vital Care Premier," “Vital Care Core,” and "Petco Live."
- Petco Love's account has 67.4K followers (as of April 2023) and updates spotlight cause campaigns and adoption stories. A link in the bio connects to the foundation’s website, which invites donations. Stories highlight the fostering process.
Twitter: 175.9K followers (as of April 2023)
- Activity used to largely mirror Facebook's, but has tapered off since October 2022.
- The Petco Foundation has 18.1K followers (as of April 2023) and remains active, with a few posts every month. Updates typically mirror the activity on the nonprofit's Facebook page.
YouTube: 93.6K subscribers (as of April 2023)
- Petco’s YouTube channel houses videos spanning pet care tips, TV spots, and promotional videos spotlighting private label and national brand products, and the retailer's marketing campaigns.
- Updates have slowed and the retailer now generally only posts 3-5 videos at a time every three months. This implies the intent is not to build an engaged fan base, but rather a consolidated video-storage platform.
- Playlists separate videos by product types, seasonal promotions, and pet-health tips.
- Petco Love has its own channel with 7.18K subscribers (as of April 2023). Videos are posted infrequently, but tend to spotlight efforts supporting rescue organizations, lost-and-found stories, and adoption tales. Similar to Petco’s channel, the foundation’s channel serves as a storage base that enables diffusion of videos through other active platforms such as Facebook or Twitter.
Pinterest: 34.6K followers (as of April 2023)
- The “Shop” board serves as an e-commerce catalog for private-label and national-brand pet products available at the retailer, with direct links to petco.com product pages facilitating purchase. A “Just for you” section offers personalized product listings.
- The “Created” and “Saved” boards also offer a broad range of tips and tricks, with many focusing on pet health and wellness.
TikTok: 37.4K followers (as of April 2023)
Videos are posted a couple times a month and include training challenges, promotions, contests, pop quizzes, tips and the occasional celebrity cameo.
E-Commerce
E-Commerce Strategy
Petco’s website offers a full catalog of pet products for home delivery, with a significantly larger selection of products than what can be found at its relatively small stores. Shipping is free for orders of $49 or more, though some heavy or hard to transport items like cat litter and frozen food do not qualify.
Key Fulfillment Partners
- The retailer struck a nationwide partnership with DoorDash in December 2020 that allowed it to start offering same-day delivery. In August 2023, they expanded the partnership to make Petco products available nationwide via the DoorDash Marketplace, accessible through both the DoorDash app and website.
- A PetcoNow service operated by Instacart offers delivery in two hours or less in 15 markets. The first order of $10 or more is free.
- In April 2019 Petco became the first pet products seller available through Shipt. The partnership reaches nearly 70 million households in more than 200 markets serviced by some 1,300 Petco stores that can receive Petco deliveries in as soon as one hour.
- Petco partnered with Yantriks to roll out a buy online, pick up in-store (BOPIS) capability to about 1,500 stores in late 2018, increasing the retailer's e-commerce revenue and number of net new customers. Petco stores now have a single view of available inventory to support online order processing and fulfillment.
- The retailer is continuing to offer home delivery of pet prescriptions though a new alliance with healthcare company Express Scripts.
Subscription Services
Consumers who sign up for repeat delivery receive up to 20% off their first order and free shipping on qualifying products. The service is offered for pet food, cat litter, dog treats, cleaning supplies and pest control products. The retailer regularly encourages trial of its e-commerce and repeat delivery services by offering incentives such as free shipping or bulk-purchase incentives. It also occasionally releases new products online ahead of their in-store launches.
Other Websites
Petco owns the e-commerce website LiveAquaria, which stocks fish and aquarium supplies. LiveAquaria offers free shipping on aquarium supplies orders of $19 or more, or for aquatic life that costs $99 or more.
A Petco Storefront marketplace within Amazon sells 9,000 SKUs.
In 2019, Petco absorbed the Drs. Fosters and Smith e-commerce business it had acquired in 2015 into petco.com. Founded as a mail-order seller of canine medications, Drs. Fosters and Smith at the time of the acquisition had grown to be one of the largest online pet retailers in the U.S. The change streamlines operations to allow Petco to better focus on its core business.
Circulars
Circulars and Publications
The weekly circular typically runs about 12 pages, with sales running Sunday through Saturday. Pictures of pets are used prominently throughout the tab, with products typically grouped by animal type with dogs in front, followed by cats, with the back page devoted to specialty pets such as fish or small mammals.
National brands have a significant presence, with features spotlighting new products, sales and incentives. New private label SKUs also receive plenty of circular support. Other features promote events, cause campaigns or in-store services.
Loyalty Programs
Loyalty Programs
At the intersection of two trends — healthcare at retail and humanization in petcare — Petco is rolling its longstanding Pals Rewards loyalty card program into a two-tiered offering under its newer Vital Care program serving a combined 24 million members.
Benefits of each tier include:
Vital Care Core
- Points on every purchase
- Every 10th bag of cat or dog food or every 8th groom is free
- Members-only pricing and offers
- Access to tools to manage pets’ health and wellness on the app or website
Vital Care Premier
Premier members enjoy Core benefits but also can choose from two plans, depending on pet type:
- Cats and Dogs: $19.99 per month per animal. Benefits include unlimited routine vet exams at qualifying vets, a 20% discount on dog grooming sessions or cat litter purchases, 10% off premium pet foods, and $15 in monthly Vital Care Rewards.
- Small Pets: $9.99 per month for one bird, fish, reptile or small pet. Includes 20% discount on nutrition and supplies, and $5 in monthly Vital Care rewards.
The Vital Care Premier Plan also includes an exclusive member help line.
For multiple pets, extra enrollments are eligible for a small discount.
Members regularly receive purchase incentives and mailers containing exclusive coupons and information about new products or in-store events.
PetCoach follows a membership model where shoppers pay $9 per month to receive special pricing on products and services along with several free veterinary consultations each year.
Petco also offers pet insurance options and a Petco credit card that nets discounts and earns points.
Private Label
Private Label
Petco has also been putting its WholeHearted private label of grain-free, high-protein, weight-control and easy-digestion dog and cat food and treats front and center as it overhauls its shelves to make pet nutrition a top priority. The line also has expanded to include human-grade frozen options, dubbed WholeHearted Fresh Recipes, formulated with pet food producer JustFoodForDogs.
The retailer is also emphasizing its adventure-focused assortment of apparel, collars, leashes, harnesses, beds, bowls, feeders and travel accessories under the Reddy brand inspired by Millennial urban pet parents, so much so it opened a retail location dedicated to the brand. In 2023, it added several items for cats, including beds, toys, apparel and accessories, which can be found on Petco.com and at its Union Square flagship store. It also rolls out additional Reddy products from time to time, including an "On-the-Go" collection in time for summer 2024.
With pet nutrition evolving, Petco also introduced Kitchen by Reddy in late 2023, with new products to prep, serve and store pet foods, and designed to blend in with contemporary home aesthetics.
Other private label lines include:
- Backcountry x Petco: Pet gear designed for active dogs and outdoor enthusiasts. The line includes dog supplies, apparel, accessories, toys, and travel products.
- Bond & Co.: A collection of more than 50 premium collars, leashes and pet apparel SKUs.
- Doctors Foster and Smith: Health-focused line of private label pet food, supplements and dog beds, including supplies for exotic pets like saltwater fish, reptiles and birds.
- EveryYay: Dog beds and crates, pens and accessories; cat furniture and scratchers.
- Good Lovin': Dog treat line spans approximately 125 SKUs.
- Good2Go: Collection of roughly 70 travel-focused SKUs including pet strollers, reflective pet apparel, carriers and harnesses.
- Harmony: Dog and cat beds, bowls, treat jars and placemats.
- Healthy Select: Bird food.
- Imagitarium: A 500-plus SKU line of terrariums and aquariums, and associated equipment and accessories.
- Leaps & Bounds: Collection of approximately 450 cat and dog toys.
- So Phresh: Approximately 200-SKU line of cleaning and waste solutions for cats, dogs, birds and small animals.
- Well & Good: Collection of roughly 200 supplements and grooming products.
- You & Me: Line of roughly 200 SKUs spans dog crates, scratching posts, parrot cages, food bowls and other hard goods.
- Youly: Collars, harnesses, toys and accessories, primarily for dogs.
The retailer also regularly releases seasonal private label lines. The retailer’s Halloween-themed Bootique collection includes costumes, night safety gear, treats, and accessories as well as grooming packages. For 2023, the Bootique line featured more than 350 items, with more than 200 priced under $20.
In 2023, Petco released a Merry Makings holiday collection which encompasses festive toys, apparel, home decor, and seasonal treats. The collection features more than 500 products that include holiday apparel, seasonal treats, festive toys and more for cats, dogs and small animals. The rollout includes gifts for the entire family (such as matching pet and pet parent pajamas), a customizable photo snow globe, hostess gifts, pre-filled stockings and more. A number of items are priced less than $20, to appeal to shoppers watching their budgets.
Petco also has a Summer Shop which spans dog toys, apparel and waste bags — as well as licensed exclusives, including:
- Dr. Seuss Pet Fans Collection: The line of apparel and toy SKUs for cats and dogs is based on the author's children's books.
- Star Wars Pet Fans Collection: The collection of pet toys and apparel expanded ahead of the release of Walt Disney Co.'s Star Wars: The Force Awakens.
- The Pusheen Pet Collection: A line of nearly 20 cat toys, beds, collars and bowls inspired by the Pusheen the cat animated web comic series.
- Trolls Pet Fans Collection: A line of pet apparel and toy SKUs based on characters from the DreamWorks film. (Some SKUs are still sold on eBay.)
Petco also encourages pet owners to register their animals at Petco Love Lost, a national lost-and-found database.
Cause/Community Programs
Cause/Community Programs
The primary driver for Petco’s cause-based programs is Petco Love, formerly the Petco Foundation, an independent nonprofit organization formed in 1999 that has spent more than $260 million supporting approximately 4,000 animal welfare programs. In 2023, it had helped find homes for nearly 143,000 pets and donate $33.5 million in grants to 2,000 shelters and animal organizations. It also partners with General Mills' Blue Buffalo on efforts to fight pet cancer.
The retailer encourages consumers to get pets from animal welfare organizations instead of buying them, running regular in-store adoption events. These events were suspended at some locations due to the COVID-19 pandemic but the organization's website allows consumers to search for animals available to adopt or foster from local rescue organizations through the nonprofit Adopt-a-Pet.com.
Petco Love also stages several major annual campaigns:
- Helping Heroes: The retailer has raised more than $14 million since 2012 through soliciting donations in stores and online to support organizations that train service and therapy dogs for veterans, first responders and police.
- Love Changes Everything: Incentivizes donations by supplying bags designed by MUTTS comic strip creator Patrick McDonnell, who also makes appearances at in-store events.
- Pet Cancer Awareness: Marks the designation of May as "Pet Cancer Awareness Month" by soliciting donations online and making contributions tied to the purchase of Blue Buffalo pet food. The retailer has raised $20 million for the cause since 2010.
- Holidays: A "Holiday Wishes" contest awards grants to animal welfare organizations. The retailer also hosts Photos with Santa events benefiting Petco Love. For 2023, shoppers can give at checkout and receive a cookie cutter and press set (with a $10 donation) or a gift bag set with hand-drawn illustrations of real adopted pets (with a donation of $20 or more).
- Be a Lifesaver: Partners with a brand (currently Bobs from Skechers) to contribute to animal welfare organizations — which are often particularly busy during the summer — and promote adopting and fostering pets. Shoppers who donate $10 to Petco Love in store during the summer campaign receive a reusable tote bag.
- Vaccinated and Loved: Occurs in March, during National Pet Vaccination Month: Since 2021, Petco Love has worked to raise awareness about the importance of vaccinating their pets, including distributing vaccines to partner animal welfare organizations and holding free pet vaccine clinics. In 2023, it reached the milestone of distributing 2.2 million free vaccines.
In 2024, Petco Love launched the Petco Love Registered Veterinary Technician Scholarship Fund with online learning provider Penn Foster. The program is designed to increase the number of registered veterinary technicians to help serve the most vulnerable pets, typically those at animal shelters or those whose owners struggle financially. Animal welfare and municipal shelter organizations can apply for scholarships, and then award them to students or volunteers.
Petco Love has also invested in the University of Florida Shelter Medicine program to grow the number of shelter veterinarians nationwide and partnered with Louisiana State University to create a community outreach veterinarian program to improve access to veterinary care in the Baton Rouge area.
In 2024, Petco Love launched "My Ruff Day," an animated campaign that spotlights technology that can help reunite lost pets with their owner. A person who loses a pet or who finds a lost pet can upload a photo of the animal or search found pets at PetcoLoveLost.org. Multiple platforms including the Ring/Neighbors app, Nextdoor and Facebook are utilized to help the search.
In 2019, Petco and Skechers' Bobs from Skechers charitable brand announced a multiyear partnership through which Skechers is supporting Petco Love by slating 25 cents to the organization for each pair of Bobs From Skechers shoes sold in the U.S. (at Petco or elsewhere). By 2023, the partnership had led to nearly $7 million in donations to animal welfare organizations.
In honor of its 20th anniversary, Petco Love also surprised one of its animal welfare partner organizations with a $20,000 grant every month that year.
In 2017, Petco Love (then the Petco Foundation) ran an "Innovation Showdown" contest where two animal welfare organizations won $150,000 in investment funds.
With extreme heat waves affecting parts of the United States in 2023, Petco offered its locations as cooling centers for leashed pets and their families during regular business hours.
Sustainability
Petco has committed to increasing its assortment of sustainable pet products to 50%, pledging that half of its pet products will align with at least one of five sustainability pillars by the end of 2025:
- Responsible manufacturing
- Sustainably sourced materials
- Sustainably sourced ingredients
- Responsible packaging
- Animal welfare
The retailer has also launched a new sustainable shopping destination at petco.com/sustainability and is now employing sustainability signage in store aisles.
Petco also has piloted a recycling program to divert plastic that isn't recyclable at curbside from landfills. The company leveraged existing back-haul shipments to transport low density polyethylene (LDPE) — a flexible thermoplastic polymer commonly used in plastic bags, cling wrap and other product-wrapping materials — from the retailer's locations to distribution centers and deliver it to a specialized plastic recycling partner where it is being converted into composite decking material for commercial and residential use.
Petco released its first environmental, social, and corporate governance report in May of 2021 as part of its commitment to transparent and accountable communication to the communities the company serves.
The retailer's previous environmental sustainability efforts include upcycling 1.5 million plastic bottles into pet accessories with its "Started as a Bottle" program.
Advertising Strategy
Advertising Strategy
Tagline: The Health + Wellness Co.
National print and TV spots, digital ads and paid social media posts emphasize in-store services and the retailer's online education platforms. Account-specific digital ads are common, often spotlighting e-commerce offerings.
In 2023, Petco teamed with hip-hop artist and pet parent Snoop Dogg on a new campaign, "Dogg Walk." A 30-second hero spot features the rapper as human version of a Doberman Pinscher, living the good life with quality, wallet-friendly food, supplies and care from Petco, reinforcing the brand's "It's What We'd Want If We Were Pets" platform.
Petco launched a new "The Health + Wellness Co." tagline in 2020 to underscore its desire to be seen as a category-defining health and wellness company focused on improving the lives of pets, pet parents and employees. It replaced the "All About Pets" tagline launched in 2017 that positioned the retailer an expert resource for pet owners who have an increasingly large number of channels for buying pet products.
Solution Providers
Solution Providers
- Strategic media agency of record: Horizon Media, New York
- Creative agency of record: Anomaly
- PR agency of record: Edelman
- Customer insights: Dunnhumby
- P-O-P design: Yunker Industries, Lake Geneva, Wisconsin
- POS technology: Toshiba Global Commerce Solutions, Durham, North Carolina
- POS advertising: Neptune Retail Solutions, Jersey City, New Jersey
- Strategy and innovation: Redscout, New York
- Website design: Red Door Interactive, San Diego
Sponsorships
Sponsorships
Petco has sponsored the San Diego Padres Major League Baseball team since 2004. The retailer holds the naming rights for the stadium, which is dubbed Petco Park. The venue hosts regular "Bark at the Park" events where fans can bring their pets to games along with an annual "Dog Days of Summer" party.
In 2016 and 2017 Petco sponsored the "Clear the Shelters" pet adoption campaign that ran on 30 television stations owned by NBC or Telemundo. The retailer distributes packets containing pet information and coupons at participating shelters, which discount or waive adoption fees during the event.
Petco also sponsors the PBS show Shelter Me, which celebrates adopted animals.
Marketing Expenditures
Marketing Expenditures
As a private company, Petco did not disclose its marketing expenditures. Since it went public (again) in 2021, it has begun disclosing that information.
Petco records advertising expense as incurred and classifies those costs within selling, general and administrative expenses in the consolidated statements of operations. The retailer's advertising expenses, net of cooperative advertising reimbursements, were $194.4 million, $203.7 million, $227.9 million, and $168.4 million for fiscal 2023, 2022, 2021, and 2020, respectively.
Vendor cooperative advertising reimbursements were not material in fiscal 2023, but they reduced total advertising expense by $10 million, $32.5 million, and $25.7 million for fiscal 2022, 2021, and 2020, respectively.
Metaverse
Metaverse
Petco reportedly filed a trademark application that indicates plans for virtual pet stores and fashion shows, virtual pet supplies and NFTs.
![Petco logo](https://assets1.p2pi.com/styles/hero/s3/2022-07/petcologo.jpg)
Petco Promotional Calendar
A roundup of seasonal promotions.
January
- New Pets: Positions itself as a one-stop shop for consumers who got a new pet during the holidays.
- New Year: Shares general health & wellness tips via petco.com and social media.
- Big Splash Sale: Three days of savings on aquatic life, tanks and supplies.
February
- National Dental Health Month: Offers a 25% discount on select cat and dog dental care items; offers oral care tips and private label product suggestions via social media and circulars.
- Valentine's Day: Stocks seasonal merchandise.
- Love Changes Everything: An annual cause campaign raising awareness and funds for animal welfare organizations with support from MUTTS comic strip creator Patrick McConnel.
- Love Your Pet Day: Social media tie-in included a giveaway in 2020.
- Flea & Tick: Promotes solutions for dogs and cats in preparation for warmer weather.
- Presidents Day Sale
- New Pets
March
- Major League Baseball: E-commerce activity spotlights licensed apparel and toys for dogs.
- Spring Cleaning: Promotes pet-focused cleaning products.
- Puppy Day: For 2024, deals on EveryYay dog supplies.
- Easter: Stores, emails highlight Easter-themed costumes and toys for cats and dogs.
April
- April Fool's Day: Digital and social media promotes the launch of fake products.
- Major League Baseball: Circular features promote licensed toys and apparel.
- National Pet Day: Savings on toys and treats, with purchase of select dog or cat food.
- Flea and Tick Season
May
- Pet Cancer Awareness Month: Partners with Blue Buffalo Co. to raise money for research.
- Summer: Introduces themed private label toys and apparel and promotes travel needs and solutions for keeping pets cool and hydrated.
- Memorial Day: Savings on cooling solutions, toys, grooming and more.
- Flea and Tick Season
June
- Be a Lifesaver: Partners with a brand for a fundraiser for the Petco Foundation.
- National Foster a Pet Month: Designated as such in 2019 by the Petco Foundation; support includes extra in-store adoption events and heavy social media activity.
- Father's Day: Runs a social media sweepstakes celebrating "dog dads" and positions aquarium supplies as a gift option.
- Pride: Themed social media and in-store signage activity, plus relevant merchandising (think rainbow- and unicorn-shaped stuffed dog toys) and events at some stores.
- Flea and Tick Season
July
- Black Friday in July: Incentivizes e-commerce purchases with a sale.
- Flea and Tick Season
August
- Summer
September
- Halloween: Displays promote costumes, seasonal treats and services.
- Holidays: Solicits adoption stories for a "Holiday Wishes" contest awarding grants to animal welfare organizations nominated by entrants.
October
- Halloween: An in-store costume contest awards prizes. The retailer also runs a "Make a Scene" photo contest on Instagram.
- Early Black Friday Sale: Timed near Amazon and other retailers' October sales activities, Petco is offering online and in-store savings across several categories.
- Holidays: Stores, website and app begin rolling out seasonal gifts and other related items.
- Helping Heroes: Solicits donations in stores and online for the Petco Foundation's work to train therapy and service animals.
November
- Holidays: Offers a bevy of deals through an annual, omnichannel campaign which includes opportunities to donate to Petco Love. (See Community Causes.) Hosts Photos with Santa events benefitting the Petco Foundation as part of a seasonal fundraiser.
- Veterans Day: Veterans, active-duty military and their family members earn extra Vital Care points in-store.
- Cyber Monday: Offers site-wide discounts and a bulk-purchase incentive.
December
- Holidays: Includes 12 Days of Deals, with daily flash deals, plus stores offer pictures with Santa and seasonal merchandise.