Petco’s business strategy to face an inflationary environment consists of expanding its product portfolio (some with lower prices), more promotions and a generalized cost reduction, among other measures.

Petco Health and Wellness Company, Inc. is a U.S. company with a chain of pet stores offering food, products, services and some small animals. It has offices in San Diego and San Antonio.

Petco’s business strategy

The pet care industry in the United States is large. It serves millions of households and is growing steadily. This progress is mainly due to the increase in the pet population and to humanization and premiumization trends.

The following are Pepco’s net sales, in millions of dollars, for the fiscal periods ended at the end of January or early February of each year:

• 2018: 4,392.
• 2019: 4,435.
• 2020: 4,920.
• 2021: 5,807.
• 2022: 6,036.
• 2023: 6,255.
• 2024: 6,116.

Thanks to its essential and recurring nature, the pet sector has shown remarkable resilience in the face of economic cycles. However, during fiscal year 2024, ending February 1, 2025, Petco recorded a reduction in discretionary spending. 

This was compounded by changes in consumer preferences, as consumers began to look for products with a greater focus on value. These adjustments reflect the impact of inflation, economic and political uncertainty, and more intense competition.

Faced with this scenario, Petco took strategic actions. On the one hand, it expanded its catalog to include more national brands. On the other hand, it implemented new pricing policies and promotions. The objective was clear: to offer more accessible prices and attract a wider public.

Net profits

In addition, by the end of 2024, the company launched initiatives to optimize its assortment. It also adjusted its store staffing model and reduced costs in different areas. All of this was aimed at improving profitability and strengthening operating performance.

In terms of its long-term strategy, Petco continues to focus on three key areas: veterinary care, e-commerce and services. Although it competes with large chains, specialty stores, supermarkets and digital platforms, the company is confident in its proposition. Its integrated ecosystem of products and services allows it to reach a diverse and growing customer base.

In fiscal 2024, Petco posted net income of $37.6 million, up 16 percent year-on-year.

The company operates 1,398 pet care centers in the United States and Puerto Rico, 142 in Mexico and 2 in Chile.