Special Report: Petco Health + Wellness Company

r food for their pets.

“With many pet parents already focused on supporting their pets’ whole health by feeding them high-quality nutrition, plus the great success of our private-label pet food brand, WholeHearted, we saw a clear opportunity to invest in helping families bridge the gap between fresh, human-grade pet food recipes crafted under the guidance of veterinarians and an uncompromised, affordable price,” said Chief Merchandising Officer Amy College.

Canadian Growth

In February, Petco announced a significant expansion of its current exclusive retail partnership with retail brand Canadian Tire, forming part of Canadian Tire’s renewed store concept and broader product assortment being rolled out as part of the company’s Better Connected strategy.

With an estimated 90 percent of Canadians living just 15 minutes away from a Canadian Tire store, this expansion enables Petco to further reach into Canada’s assessed $5.3 billion pet market with an expanded, exclusive Petco product assortment in dedicated Canadian Tire store spaces as well as online at canadiantire.ca. Petco shop-inshops would be available in 90 percent of Canadian Tire’s locations across the country by the middle of 2023.

“Canadian Tire’s legacy as an admired go-to retailer for living, playing, fixing, automotive and seasonal products has cemented them as a household name in Canadian homes. Through our exclusive expanded partnership with Canadian Tire, we’re growing awareness of—and access to—Petco’s health and wellness products within Canada’s dynamic and rapidly growing pet market,” said Petco’s College. “Four years after our teams brought this exciting and innovative concept to pet parents, the continued growth of our partnership speaks to pet parents’ deep confidence in Petco’s pet care expertise, as well as the power and reach of Canadian Tire’s connection with local markets. These shop-inshops will continue to bring innovation to existing Canadian Tire pet parents and attract new customers for years to come.”

Delivering against Petco’s mission of improving the lives of pets and people, the two retail leaders would significantly increase inventory of Petco’s premium, owned and exclusive pet products—including Petco’s fast-growing WholeHearted line of premium pet food and treats, and its popular lifestyle and fashion brand for pets, Reddy. The shop-in-shop experience also features a variety of additional Petco brands, including SoPhresh pet litter and accessories, and Well & Good, a pet care line with a wide range of expert-formulated, high-quality first-aid solutions, remedies and grooming products and tools.

“With 60 percent of Canadian households home to a family cat or dog, pet is an important product category with strong potential for growth rooted in value, relevance and trusted brands for our customers,” said Michael Magennis, Senior Vice President, General Merchandising at Canadian Tire Retail. “Since partnering with Petco in 2018, we have seen double-digit growth in the category with a marked increase in customers shopping the pet category for the first time.”

Petco last embarked on a shop-inshop model like this in early 2022 when it announced a pilot program with home improvement retailer Lowe’s, conceived of to provide a unique customer experience where pet parents can support their pet’s health and wellness through a curated assortment of Petco’s high-quality pet nutrition, supplies and services, and improve the home they share in one shopping trip.

“For many of our customers, their pets and their homes top the list of things that matter most, especially after two years spent mostly together within the same four walls,” said Bill Boltz, Lowe’s evp of Merchandising. “This partnership enhances the total home solution we offer them by bringing home improvement and pet care products, services and expertise together under one roof.”

Dynamic Vital Care

In January. Petco announced it was consolidating its 24 million subscribers within a two-tiered offering under its Vital Care program. The program originally launched in October 2020 to help pet parents take a more proactive approach to pet healthcare by offering discounted services like routine veterinary exams and grooming services: the free membership tier, “Vital Care Core,” and paid membership tier, “Vital Care Premier.”

Petco last year enhanced membership benefits of its Vital Care protection program to cover birds, reptiles, fish and small animals as well. Vital Care Premier members, for $9.99 a month for one bird, fish, reptile or small pet, enjoy discounts on food and supplies plus $5 Vital Care Rewards per month.

“Expanding Vital Care to birds, reptiles, fish and small animals makes it more affordable for their pet parents to bring home the right products that support the overall health and wellness of their beloved companion animals, which we expect will bring in more customers more often, and enhance sales for our companion animal business,” said Jonathan Williamson, Petco Vice President, Animal Care Education and Merchandising.