Petco Health and Wellness Company Inc. is confident that shoppers will keep spending on their pets even amid inflation and other economic challenges.
The specialty pet retailer unveiled its longer-term financial framework, as well as its strategic and capital priorities, in the warm-up to its annual Investor Day. Long-term, Petco expects revenue growth in the high single digits and adjusted net income growth in the low single digits. Petco is also reaffirming its fiscal year 2022 guidance, including net revenue of $6.15 – $6.25bn and adjusted earnings per share of $0.97 – $1.
The company is also testing what it calls “small town rural” store concepts in key strategic locations and driving brand awareness and penetration in low-share markets.
Other new and existing strategic initiatives Petco is undertaking in 2022 to drive growth include:
- Unifying an integrated future loyalty program under its Vital Care paid subscription program, with the goals of migrating customers to subscription, saving money for customers driving share of wallet for Petco, and expanding Petco’s market position
- Building a differentiated merchandise offering through key vendor relationships and continuing to scale owned brands, including Reddy
- Scaling personalization capabilities by leveraging its pet database, seeking to deepen engagement and loyalty
- Investing to build a customer-centric, flexible fulfilment network by enhancing the company’s physical footprint and digital capabilities
- Driving access to new, high-value customers through partnerships with other brands, such as Lowe’s
