Pet grooming

Petco Overwhelmed by Demand for Pet Grooming and Training, Says CEO

  • Petco is overwhelmed by the demand for pet care, training and veterinary services.
  • Petco CEO Ron Coughlin told Bloomberg the growth is driven by increased pet adoptions in 2020.
  • Coughlin said 11 million pets were adopted in 2020, mostly by millennials and millennials.

Petco is trying to meet growing demand for its grooming, training and veterinary care services after millions of pets were adopted during the pandemic.

“Our training and grooming is overwhelmed with demand,” Petco CEO Ron Coughlin told Bloomberg on Thursday. “Our veterinary hospitals and veterinary clinics are increasingly in demand as people feel more comfortable going out.”

Coughlin added that Petco is adding additional capacity to these services to keep up with the influx of customers.

Petco reported better than expected first quarter results this week, adding 1.2 million new customers at the start of the year and posting sales of $ 1.41 billion. Coughlin told Bloomberg that the growth of the business is due to the increase in pet adoptions in 2020.

“We saw 11 million new pets in 2020,” he said. “The majority of pets have been adopted by Gen Y and Gen Z, and Gen Y and Gen Z actually spend more on their pets.”

Coughlin added that Petco expects a similar increase in the number of new pets in 2021, and the companion animal category as a whole is expected to grow by 9%.

Read more: How Poshmark plans to capitalize on the pet adoption and resale boom by launching a category of pets on its platform

Throughout the pandemic, animal shelters and ranchers have reported shortages of pets, especially dogs, as people searched for a “pandemic puppy” to come to their aid during a lonely year. More pet owners meant a higher demand for pet supplies, and time spent at home meant people began to look for ways to pamper their pets.

“Often the animal is quite an animal

recession
-proof, “said Rod Sides, vice president of retail and distribution at Deloitte to CNBC last year.” People will continue to spend on their pets, just like they do on their children. and their families. “

This spike in pet ownership has fueled the growth of several other pet-centric businesses. Pet-care start-up Rover first saw its business dry up when the pandemic forced people to stay at home. But the increase in the number of new pets and the ability for people to start leaving the house has again sparked demand for dog walkers.

Other companies, like online pet pharmacy Chewy, have pivoted their business to telehealth amid the pandemic, which resulted in a 50% sales increase in the second quarter of last year.


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