Petco outlines future strategy and goals

Ahead of its 2022 Investor Day Event in New York City, Petco Health and Wellness Company has unveiled its long-term strategic priorities, with a focus on the pet retailer’s exclusive and private label offerings.

"Petco is on one of the steepest growth trajectories in all of retail, supported by our position as the only fully integrated provider of pet health and wellness across products, veterinary and services, digital, and in brick and mortar channels," said Ron Coughlin, chairman and CEO of Petco. "We are defining the future of pet parenting in an incredibly high growth and economically resilient category. Our ecosystem is built to capture the market opportunity and positions us as a leader of what we call Retail 3.0. As we build on last year's incredible performance, we're emerging stronger and more confident that our strategic moats position us to compete and win."

At its Wednesday event, Petco said it will provide updates on new and existing initiatives, including:

• Outlining an integrated future loyalty program unified under Vital Care, migrating customers to subscription, saving money for customers, driving share of wallet for Petco, and expanding Petco's position as the premiere destination for pet parents;
• Testing "Small Town Rural" concepts in key strategic locations and driving brand awareness and penetration in low-share markets;
• Building a differentiated merchandise offering through key vendor relationships, such as its recently expanded partnership with Just Food For Dogs, a category defining over-the-counter offering with the Healthy Habits Hub, and continuing to scale owned brands, including Reddy and Whole Hearted;
• Scaling personalization capabilities by leveraging the power of its comprehensive pet database and data-driven approach to enhance the pet parent experience, and deepen engagement and loyalty;
• Investing to build a customer-centric, flexible fulfillment network by enhancing the company's physical footprint and digital capabilities;
• Driving access to new, high-value customers through partnerships with best-in-class brands, such as Lowes; and
• Committing to improving the lives of pets, pet parents and Petco partners as evidenced by becoming the first pet retailer in history to receive the American Humane Certified Seal of Approval.

Petco said it will also share its updated strategic priorities that support its efforts to capture market share, drive profitable growth and expand its total addressable market, including:

• Deepening Petco's competitive moats through its unique and comprehensive pet health & wellness ecosystem, in a $119B category that is large and growing;
• Scaling Petco's services offering – led by its national veterinary care footprint – by providing pet parents with unrivaled access to general and specialized health care services;
• Leading the category with an enhanced merchandise offering, emphasizing premium owned and exclusive products Pet Parents can't get in other channels;
• Leveraging Petco's national pet care center network to enable differentiated fulfillment capabilities to meet customer needs regardless of how they choose to shop; and
• Growing competitive advantages, including the recently launched Vital Care 2.0 membership subscription program, deepening our data insights and harnessing the power and passion of our knowledgeable partners.