Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

How is Petco Adapting its Strategy to 2022 Consumers?

by 
Shira Petrack
 on 
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 Placer.ai Free
Oops! Something went wrong while submitting the form.
Location Intelligence Breakdown: Coffee Caps-Off 2022
Digitally Native Brands Lean Into Brick & Mortar
Washington, D.C. Population Changes & Trends
A Location Intelligence Perspective on Macy’s Rightsizing
Amazon-Powered Shopping: The Future of Brick-and-Mortar Grocery?
Cold Weather, Hot Visits: Diving into Winter Resorts
Wawa and 7-Eleven: Leaning Into the “Slurpee Effect”
2022 and Beyond: Catching Up With McDonald’s & Chipotle
Let’s Have Some Fun! Going Out Is In
Placer.ai’s Q4 2022 Quarterly Index
Placer.ai Adds Industry Executives to Leadership Team To Drive Company's Next Phase of Growth
5 Emerging Retail Formats: 2023’s Brick-and-Mortar Evolution
Grocery Update: Zooming in on the Lone Star State
2022 Office Recap: The Year of the TGIF Work Week
What Lies Ahead for Brick-and-Mortar Luxury in 2023
Placer.ai Mall Indexes: December 2022 Recap
Looking Back on 2022’s Holiday Shopping Season
Post-Pandemic Migration Trends in New York
Top Retailers for 2023
The Live Sports Advertising Opportunity
Domestic Migration to the Mountain States: Small Shifts with Big Implications
New Year, New Food: 5 Dining Trends For 2023
Announcing Placer.ai’s COVID RECOVERY DASHBOARD
This is Why Shop-in-Shops Are Everywhere
Super Saturday 2022 Recap
The San Francisco Shift
Grocery Year-End Update: Publix in the Spotlight
Three Ways Retailers Can Think Small to Increase Store Impact
Offline Beauty Is on an Upswing
The Evolving Migration Patterns of New York’s Florida Snowbirds
Placer.ai Office Index: November 2022 Recap
How Viral Social Media Trends Can Drive Offline Engagement
Are You Ready for Some Football? Experiential Marketing Shows Promise
Mall and Shopping Center Trends For 2023
Retail Corridors and Indoor Malls: A Holiday Head-to-Head
Placer Bytes: Nike, lululemon, and GameStop Update
Placer.ai Mall Indexes: November 2022 Update
Black Friday 2022: Consumers Hear the Call
Digitally Native Brands: Taking Off, Offline
Discount and Dollar Stores Leading the Pack
Turkey Wednesday 2022
Retail’s Evolving Holiday Season
Placer Bytes: Starbucks and Department Stores Ahead of Black Friday
Ulta: A Force to be Reckoned With
College Towns Drive Dining Growth
Foot Traffic Trends Reveal Consumers Ready for Holiday Cheer
How Retailers Can Win Big By Going Small
How Are Consumers Feeling Ahead of Black Friday 2022?
Off-Price, Hibbett, and Dick’s Pre-Holiday Check-in
Ho, Ho, Wholesale: Costco, Sam’s Club, and BJ’s
October 2022’s Retail Rebound
Target and Walmart Ahead of the Holidays
Home Improvement: Leave it to the Pros
Despite Inflation, Holiday Season is Off to a Good Start
Placer.ai Office Index: October 2022 Recap
Placer.ai Mall Indexes- October 2022 Update
Americans Double Down on Fitness
The State of Grocery
CVS and Walgreens: The Wave Continues
Coffee Chains Brewing Up Visits
Placer.ai Spotlight: Pizza Players
What Drove COVID-Era Urban Migration Trends?
Kroger and Albertsons: A Merging of Strengths
Texas Roadhouse Innovations Dishing Up Success
Holidays on the Horizon: Mid-Range and Luxury Shopping
McDonald's and Chipotle's Post-Pandemic Success
Announcing Placer.ai’s Q3 2022 Quarterly Index
5 Hot Restaurant Brands for 2023
Target Finds a Winning Deals Day Formula
Five Trends to Watch for 2022’s Holiday Shopping Season
September 2022 Analysis: A Difficult Month and Time for Optimism
Inflation’s Retail Winners
Five Apparel Retailers to Watch Ahead of the Holidays
Placer.ai Spotlight: Wawa’s QSR Pivot
Placer.ai Mall Indexes: September 2022 Recap
Placer.ai Office Indexes: September 2022 Recap
The Impact of Population Growth on Commercial Real Estate 
Starbucks' New Makeover
There's Somethin' About Pumpkin
Expanding Offline Reach
Breakfast Restaurants are Rising in Popularity
The Power of Labor Day 2022
Tourism in Miami Heating Up
Citi Trends on the Rise
Reaching Rural Consumers Through Retail Media Network
Darden Restaurants Cooking Up Success
The Home Improvement Sector: A Sign of Consumer Confidence
QSR Is Having a Northeastern Growth Spurt
Domestic Migration’s Ripple Effects
A Look Back at Back To School 2022
Kroger Digital Tell-All
The Return of In-Person Networking
The Reinvention of the American Mall  
Placer.ai Office Building Indexes: August 2022 Recap 
Placer.ai Mall Indexes - August 2022 Recap
Five Below’s Back to School Success
Plus-Size Fashion’s Staying Power
Placer Bytes: Best Buy & GameStop 
Petco Barking Up the Right Tree
Lipstick Effect Boosts Ulta’s Growth