Petco

Petco Health and Wellness Company, Inc.

Company type	Public
Industry	Pet retail
Predecessor	United Pharmacal Company (UPCO)
Founded	1 January 1965 (1965-01-01) in California, United States
Founder	Walter Evans
Headquarters	San Diego and San Antonio , United States
Area served	United States, Puerto Rico, Mexico, Canada (partnership)
Key people	Joel Anderson (CEO)
Products	Pet food, supplies, live small animals, aquatic pets, pet services
Website	www.petco.com

Petco Health and Wellness Company, Inc. stands as a prominent American pet retailer with headquarters located in San Diego and San Antonio. The enterprise provides a wide range of pet products including food, accessories, services, and selected live small animals.

Originating in 1965 as a veterinary supply mail-order business in California, Petco evolved into a nationwide chain specializing in pet food and supplies. The company was purchased by The Spectrum Group, Inc. and Thomas H. Lee Company in 1988, then went public on NASDAQ in 1994 under the ticker "PETC". After being privately held by Leonard Green & Partners alongside Texas Pacific Group starting in 2000, Petco re-entered the public market in 2002. In 2016, majority ownership shifted to CVC Capital Partners and the Canada Pension Plan Investment Board, who maintained control through a third initial public offering in January 2021.

As of 2021, Petco operated nearly 1,500 retail locations throughout the United States—including Puerto Rico—and Mexico. These stores provide pet food, supplies, live small animals and fish, along with services such as obedience training, grooming, vaccinations, veterinary care, and adoption programs. The Unleashed by Petco brand represents smaller-format stores that do not carry live animals. Digital ventures under Petco include the PetCoach mobile app, PetInsuranceQuotes.com, and Vital Care—a subscription-based veterinary service platform.

The company holds the naming rights to Petco Park, home stadium of the San Diego Padres baseball team. In 2020, Petco reported revenues totaling $4.1 billion and was ranked as the 107th largest private U.S. company before its most recent public offering.

1965–1993

Petco was established in 1965 by Walter Evans, co-owner of United Pharmacal Company (UPCO), when he initiated a mail-order veterinary supply operation based in San Diego County, California. Evans served as the inaugural CEO and inaugurated the first retail outlet in 1976 located in La Mesa, California, focusing primarily on pet and veterinary products. The company adopted the Petco name in 1979 and launched its first official Petco-branded store in Tigard, Oregon, in 1980.

To distinguish itself from supermarket competitors during the mid-1980s, Petco prioritized premium pet-food brands such as IAMS, Science Diet, and Nutro. In 1988, expansion accelerated through acquisitions of West Coast chains Wellpet, Inc. and The Pet Department, growing its store base to 130 locations. That same year saw private equity firms The Spectrum Group and Thomas H. Lee Company acquire Petco, enabling further growth through additional acquisitions.

By 1990, burdened by substantial debt levels, Petco appointed Brian K. Devine—formerly of Toys "R" Us—as president and CEO to implement a turnaround plan. Devine unified acquired outlets under the Petco banner, overhauled management personnel, and secured new lines of credit. Rejecting a big-box discount retail strategy, he emphasized high-quality natural and organic products while introducing aquarium displays to increase customer engagement.

In 1991, the company introduced its mascots Red Ruff and Blue Mews alongside adopting the slogan "Where the pets go.” By 1992, Petco had expanded onto the East Coast with new store openings and a distribution center launch—marking an important milestone for its national growth ambitions.

1994–2000s

In 1994 Brian K. Devine assumed the roles of chairman as well as president and CEO—a position he retained until 2015. That year also marked Petco’s initial public offering on NASDAQ under ticker PETC to raise capital for further expansion efforts. Between 1990 and 1995, the company consistently opened between 20 to 50 new stores annually.

By 1995, alongside competitor PetSmart, Petco ranked among the largest U.S. pet food and supply retailers offering services such as obedience training classes, grooming salons, vaccination clinics, and adoption events. Petco differentiated itself by selecting unique store locations and maintaining smaller store footprints to avoid warehouse-style layouts.

In 1997 Petco acquired 104 additional stores mostly from the Midwest- and South-based chain PetCare. This rapid expansion contributed to an $8 million net loss reported in 1998 alongside a significant decline in stock price.

In July 1999 Petco invested $66 million to acquire a 20% stake in Petopia—a newly launched pet e-commerce venture that began operations that August. Following the dot-com bubble burst, Petopia sold most of its assets back to Petco in 2000; by 2001 traffic to Petopia.com redirected visitors to Petco.com as part of a consolidated online strategy.

In May 2000 Leonard Green & Partners (LGP) together with TPG Capital (TPG) agreed to acquire Petco via a $600 million leveraged buyout finalized in October of that year—taking the company private. LGP and TPG later returned it to public markets in 2002 while retaining majority ownership until 2004.

In 2003 Petco secured naming rights for San Diego’s baseball stadium—Petco Park—with an agreement worth $60 million over a duration of 22 years; this deal was among the highest-value naming rights agreements for baseball venues at that time.

James Myers—who had served as CFO since 1990—became CEO in 2004 before being succeeded by Brad Weston in 2017; Weston had previously held positions as company president and chief merchandising officer.

Petco’s "Think Adoption First" initiative encourages adoption rather than purchasing pets directly from breeders or sellers. Responding to advocacy from PETA, the company ceased sales of large exotic birds in 2005 and has never retailed dogs or cats.

After accounting errors related to distribution caused a stock price decline mid-2006, LGP and TPG again took Petco private through a leveraged buyout valued at $1.8 billion that included assuming $120 million debt; this transaction closed in October 2006.

The retailer stopped selling rabbits in 2008 aiming to reduce shelter surrenders. Having previously discontinued dog and cat food made in China due to safety concerns, Petco became the first major national pet retailer to eliminate Chinese-made dog and cat treats from its shelves in January 2015—fulfilling a pledge announced in May 2014.

2010–2020s

In 2011, Petco established a secondary headquarters in San Antonio, Texas, complementing its primary base in San Diego. That same year, the company refreshed its logo and slogan. Petco expanded its international footprint by opening stores in San Juan (2012) and Ponce, Puerto Rico (2013), and entered the Mexican market through a joint venture with Grupo Gigante in 2013.

The acquisition of Drs. Foster and Smith in 2015, then the largest online pet supplies retailer in the US, enabled Petco to enter the veterinary prescription medication sector and introduce new pet food products. By early 2019, Petco had closed Drs. Foster and Smith’s operations, integrating their e-commerce platform into Petco.com while outsourcing prescription fulfillment to Express Scripts. In 2020, the LiveAquaria.com brand was sold to Tropical Fish International.

That year also saw Leonard Green & Partners and Texas Pacific Group considering a sale of Petco. Although the company filed for an initial public offering (IPO) in August, it withdrew after merger negotiations with PetSmart stalled due to antitrust issues. In February 2016, Petco was acquired by CVC Capital Partners and the Canada Pension Plan Investment Board for $4.6 billion, resulting in the IPO plans being shelved.

Petco entered the Canadian market in August 2018 through a partnership with Canadian Tire to distribute its private-label pet food and accessories across 500 Canadian retail locations. Later in 2018, Petco committed to eliminating artificial colors, flavors, and preservatives from its pet food and treat offerings. In line with a focus on animal health and wellness, the company discontinued sales of shock collars in 2020.

With reported revenues of $4.1 billion in 2020, Petco ranked as the 107th largest private company in the United States. The company updated its branding once more with a new logo and tagline in October 2020.

January 2021 marked Petco’s third IPO under the corporate identity Petco Health and Wellness Company, Inc., raising $864 million aimed at debt reduction, while CVC Capital Partners and CPPIB maintained majority stakes. The stock began trading on NASDAQ under the ticker symbol WOOF.

In April 2021, Petco removed 32 traditional rawhide products from its inventory to replace them with more digestible options and set a target for half of its merchandise to be sustainable by 2025.

By October 2023, CreditRiskMonitor identified potential Chapter 11 bankruptcy risks facing Petco.

On March 13, 2024, CEO Ron Coughlin resigned; board member and Best Buy executive R. Michael Mohan was appointed interim CEO. Subsequently, on September 10, 2024, Joel Anderson—former CEO of Five Below and Walmart executive—was named CEO during the company’s second-quarter earnings announcement.

Products and services

Petco provides a range of pet foods, supplies, small animals, and aquatic pets. Its portfolio includes ownership of PetCoach—a pet advice application—and PetInsuranceQuotes.com—a platform for comparing pet insurance options. The company offers services such as adoption events, obedience training classes, grooming sessions, vaccination clinics, and veterinary care.

As of 2022, Petco’s product assortment includes brands like Hill's Science Diet, Instinct Pet Food, Royal Canin, Blue Buffalo Cat & Dog Food, Merrick, and Orijen. In 2018, it formed a partnership with JustFoodForDogs to supply "human-grade" pet nutrition.

Service offerings encompass grooming, training programs, veterinary services, pet adoptions, self-service dog washing stations, and pet insurance; however, in-home training services were suspended amid the pandemic. Additionally, Petco operates PupBox—a monthly subscription service for dogs.

The subscription model extends to veterinary visits for cats and dogs at clinics alongside nail trimming and dental cleaning services for dogs. A loyalty program initiated in 1997 continues to reward frequent customers.

Staff and facilities

In June 2018, seasoned executive Ron Coughlin was appointed as CEO and chairman of the board. Mike Nuzzo holds the dual roles of CFO and COO.

Petco manages approximately 1,500 retail locations throughout the United States, Mexico, and Puerto Rico, employing around 27,000 individuals as of 2020. Headquartered in San Diego, the company operates 105 stores that include veterinary clinics on-site.

By 2022, Petco had established 65 Unleashed by Petco outlets across nine states. These compact-format stores specialize in natural dog and cat nutrition, exclude live animal sales, and foster community involvement through events such as pet parties, adoption drives, training sessions, vaccination clinics, and offering premium products made in the U.S.

Legal issues

In June 2010, Petco resolved a $1.75 million consumer protection lawsuit in California related to allegations of customer overcharging and inadequate animal care in its stores between 2005 and 2008, without admitting fault. Previously, in 2004, the company had paid more than $850,000 to settle a comparable case.

In September 2011, nearly one hundred animals perished at a Petco store in Johnson City, New York, following flooding caused by Tropical Storm Lee. Although severe weather warnings had been issued beforehand, Petco initially denied receiving such alerts and attributed the fatalities to a sewage backup instead of flooding. This response drew criticism from the city’s mayor. Subsequently, Petco accepted full accountability for underestimating flood risks. The organization PETA urged authorities to pursue a criminal investigation.

A 2013 lawsuit filed by the family of a boy who died from rat-bite fever was dismissed after a jury concluded that Petco was neither negligent nor liable.

Petco Love

Petco Love, originally known as The Petco Foundation and founded in 1999, is dedicated to improving companion animal welfare by investing more than $30 million annually toward this goal. Operating as an independent nonprofit entity, it collaborates with local animal welfare organizations nationwide to facilitate adoption events and supports initiatives such as spay/neuter programs, animal-assisted therapy, and humane education.

In 2019, Petco Love entered into a strategic alliance with Skechers, which contributes a portion of sales from its Bobs charity footwear line to the foundation. That same year, the foundation donated $500,000 to El Paso’s Animal Services to develop an adoptable cat exhibit at the El Paso Zoo. In 2021, Petco introduced the "Love Lost facial recognition program," utilizing advanced technology to reconnect lost dogs with their owners through shelter databases.

This foundation reflects Petco’s overarching business model that combines corporate social responsibility with market engagement to strengthen brand reputation and foster customer loyalty within the pet care sector.