Petco Health and Wellness Company unveiled a long-term financial framework outlining how the business will grow within the $119 billion pet goods industry for its 2022 Investor Day, held March 23.
Key priorities include an integrated future loyalty program under its Vital Care pet health plan and migrating more customers into subscription programs. Petco also plans to test opportunities in key locations for its “Small Town Rural” concept, designed to increase brand awareness in low-share markets.
“Petco is on one of the steepest growth trajectories in all of retail,” said Ron Coughlin, Chairman and CEO of Petco in a statement. “We are defining the future of pet parenting in an incredibly high growth and economically resilient category.”
Petco also is focusing on growth areas including:
- Expanding partnerships to build differentiated merchandise;
- Scaling Petco brands such as Reddy and Whole Hearted;
- Cultivating greater personalization through the company’s pet database and data to increase engagement and loyalty;
- Investing in flexible, customer-focused fulfillment by enhancing brick-and-mortar shops and its digital presence; and
- Connecting with high-value customers through partnerships such as shop-in-shops partner Lowes.
The pet retailer also reaffirmed its 2022 fiscal year guidance of net revenue ranging from $6.15 billion to $6.25 billion; adjusted EBITDA of $630 million to $645 million; adjusted earnings per share of $0.97 to $1.00; and capital expenditures of $275 million to $325 million.