Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a account? Log In

How is Petco Adapting its Strategy to 2022 Consumers?

Shira Petrack
May 24, 2022
How is Petco Adapting its Strategy to 2022 Consumers?

Our latest whitepaper looks at five legacy retailers that have succeeded in staying relevant over decades by consistently adapting their strategy to shifting consumer preferences. Below we share our findings on one of the brands, Petco, that is meeting customers where they are – literally – to build one of the fastest-growing petcare brands in the country today. To learn about the other legacy retailers charting a new course, read the full whitepaper here

Petco’s Pandemic Growth Spurt 

As pet adoption surged over COVID, foot traffic to Petco took off, with 2021 visits higher than 2019 visits in every state. But Petco’s current success is not just due to external factors. The company’s rebrand as a pet health and wellness one-stop-shop ecosystem rather than its former position as a mere pet product supplier has allowed the company to fully capitalize on the current pet ownership surge. 

Despite the movement restrictions, the company's brick and mortar channels performed particularly well over the pandemic. So, while PetSmart is still the category visit leader – Petco’s visit share has been encroaching on PetSmart since Q3 2020, and Petco’s weekly foot traffic continues to exceed pre-pandemic levels by double-digits. 

Petco is also one of the few truly omnichannel retailers, with its online and offline channels working hand in hand to improve customer experience and company efficiency. Customers can book grooming appointments online and customize care reminders. Should customers decide to shop digitally, Petco can leverage its distributed store fleet to speed up delivery while cutting costs; this has helped the brand make inroads into online-only retailers. 

Thanks to the brand’s partnership with DoorDash and the company’s large and widespread store fleet, Petco has been able to offer same-day delivery from any of its 1,500 stores. This helps Petco fulfill digital orders for a fraction of the delivery costs incurred by online–only retailers who need to ship their products across multiple zones. As of 2021, 80% of Petco’s digital orders are shipped directly from stores rather than from a dedicated distribution center.

Petco’s Move Beyond Cities

Internal migration trends are likely also propelling the pet health and wellness provider forward: Petco CEO Ron Coughlin has attributed the company’s current growth spurt to the pandemic-induced movement into suburbs and more rural areas. As people moved out of small city apartments, many adopted pets and looked for petcare retailers near their new homes to support their pet-parent journey. The company recently began testing their “small town rural” store concepts to further serve the new residents. 

Zooming into Houston

Already, suburban locations are outperforming Petco stores located in cities. The graph below zooms into Houson, Texas and compares urban Petco locations (in purple) to suburban ones (in yellow). Although foot traffic relative to three years ago increased for both categories, the suburban locations significantly outperformed the urban ones almost every quarter since Q1 2021. In Q1 2022, the latest full quarter for which data is available, suburban Petco locations in Houston saw a 10.8% increase in visits relative to Q1 2019, compared to just a 3.3% increase in Yo3Y foot traffic for urban locations. 

Since the overwhelming majority of new owners have decided to keep their pets, the pet care category will likely continue seeing a boost for years. Petco’s investment in its suburban locations and move towards pet health and wellness has positioned the brand to continue increasing its share of this growing market. 

For more insights into legacy brands charting a new course, read the full whitepaper

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Free
Oops! Something went wrong while submitting the form.
Pent-Up Demand Ahead of October Sales Events
4 Strategies Retailers are Using to Drive Traffic to Their Venues
5 Key Regional Grocery Players Impressing in 2023
Upscale Kitchenware Trending Up
Costco Finds More Room for Growth
Four C-Store Chains Making an A-Grade
National Parks + Outdoor Summer Activities
Diving Into Darden: Summer 2023 Update
The Summer Event Effect
Messi: Massive in Miami
Looking Back on Back to School 2023
The Anchor Recap: August 2023 Office Index: August 2023 Recap Mall Index: August 2023 Recap White Paper Recap: August 2023
Starbucks Pumpkin Spice Latte Strikes Again
Big Scoop: We All Scream For Ice Cream
Sports Away: Lululemon & Nike’s Momentum Continues
Summer Visits Heat Up For Recreation and Outdoor Gear Chains
No CSS overwrite - July 2023 Office Index Recap
Staging - August 2023 Mall Indec
Mid-Atlantic Grocery Deep Dive
Experiential Chains Heating Up This Summer
Petco Goes Big by Going Small
Ulta Beauty: Leading the Discretionary Pack
Discount and Dollar Chains Continue to Thrive
Summer of Sports: DICK’s Sporting Goods and Hibbett Sports
Off-Price: Succeeding Into Summer
The Anchor Recap: July 2023
Superstores Maintaining Pandemic Gains Amidst Economic Headwinds
2023: Home Improvement at the Halfway Point
July 2023 Office Index Recap Mall Index: July 2023 Recap
widget test
The Taylor Swift Visit Lift
Southwestern Grocery Dive
July 2023 White Paper Recap: Halfway Point Review & Quarterly Index
Yum! Brands: Driving Dining Visits
Slurpees and Summer Movies Stimulate Consumer Foot Traffic
Cool Beans: Summer Coffee Update
Checking In on Back to School 2023
Crocs and New Balance Tip The Scales
Burger Bliss: Shake Shack and In-N-Out Stacking Visits
Chipotle & McDonald's Continue to Reign Supreme
Vibenomics and Partner to Enhance Retail Media In-Store Measurement
California Grocers Here We Come!
Marriott’s Different Audiences
Bonchon and Kura Sushi Thrive in the Fast-Casual Scene
A Shoe In: Footwear Climbs to the Top
Cheers! Raising a Glass to Beverage Retail Office Index: June 2023 Recap Mall Index June 2023 Recap – A Turn of the Tide and a Dive into Open-Air Lifestyle Centers
Local Kitchens: Redefining the Restaurant
Unlocking Urban Insights: The Value in Manhattan’s Employees
Ohio State Parks On The Rise
How is Inflation Impacting the High-Income Shoppers?
Five Fast-Growing Dining Chains
What To Expect From Prime Day and July Sales Events in 2023
The State Of Fashion: How Are Apparel Retailers Faring in 2023?
2023’s Latest Dining Success Story: GEN Korean BBQ House
The NBA Finals: A Location Intelligence Perspective
Moving the Market: The Impact of Domestic Migration on Housing Costs
Post-Pandemic Museum Update
The Darden-est Things
The Enduring Demand for Urban and Suburban Retail
Leveraging Data to Evaluate the Impact of Municipal Investments
Trader Joe's Success Amidst Food Inflation and Changing Consumer Behavior Office Index: May 2023 Recap
Fitness at its Fittest: Staying Strong in 2023
Movie Theaters, Off-Price, and Home Improvement: May 2023 Recap Mall Index - May 2023 Recap
What’s Working for Bath & Body Works?
Why Are Specialty Grocers Thriving in 2023?
The CAVA Craze: A Location Intelligence Perspective on the Mediterranean Marvel
How Will Primark’s US Expansion Impact Target?
All Eyes on Eyewear
Northwestern U.S. Grocery Dive
Return of the Lunch: Salad Chains Are Thriving
Retail Media Networks – Off the Beaten Track
Bet Your Bottom Dollar: Discount and Dollar Stores Drive Foot Traffic
Ulta & Lululemon: Discretionary Spending On The Up
The Score After Q1: Sporting Goods Chains
Who Uses NYC Airports: Biting Into The Big Apple’s Main Transport Hubs
Off Price: Strength in The Face of Retail Challenges
Visits Improve for Home Improvement
Walmart, Target & Wholesalers in Q1 2023 – The Return of Mission-Driven Shopping?
Department Store Roundup: Q1 2023 Office Index: April 2023 Recap Mall Index, April 2023 – A Rebound on the Horizon?
How Will Bed Bath & Beyond’s Bankruptcy Impact the Retail Space?
Buffet Restaurants: Filling Up on Foot Traffic
Thrift Stores: Vintage Visits Drive New Age in Apparel
The Windy City: A Hub of Post-Pandemic Opportunity
Diving into Dining Traffic - Q1 2023
Bring On The Joe
A Dollar (or more) For Your Thoughts: Five Below and pOpshelf
Dining Out With The Cheesecake Factory
Retail Foot Traffic Recap – March 2023
Digging Into 2023: McDonald’s and Chipotle Update Office Index: March 2023 Recap