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Petco

#5332

Rank

$955.47M

Marketcap

US United States

Country

Petco
Leadership team

Mr. Ronald Coughlin Jr. (Chairman & CEO)

Mr. Brian LaRose (Chief Financial Officer)

Mr. Justin Tichy (Chief Pet Care Center Officer & COO)

Products/ Services
Pet, Retail, Service Industry
Number of Employees
20,000 - 50,000
Headquarters
San Diego, California, United States
Established
1965
Company Registration
SEC CIK number: 0001826470
Net Income
100M - 500M
Revenue
Above - 1B
Traded as
WOOF
Social Media
Overview
Location
Summary
Petco Health and Wellness Company, Inc., a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. As of March 23, 2022, the company operated approximately 1,500 Petco locations in the United States, Mexico, and Puerto Rico that included a network of approximately 200 in-store veterinary hospitals. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.

History

1965 to 1993

Petco originated when Walter Evans, a co-owner of a Missouri-based distributor of pet supplies and products called United Pharmacal Company , moved to San Diego County, California. In San Diego County in 1965, Evans initially set up a mail-order veterinary supply business with five associates. He became the company's first CEO. Evans opened his first retail store in 1976 in La Mesa, California, selling pet and veterinary supplies. In 1979 the company was rebranded Petco, and the first Petco store opened in Tigard, Oregon a year later.To compete with supermarkets, Petco focused on premium pet-food brands such as IAMS, Science Diet, and Nutro, which were introduced in the mid-1980s. In 1988 Petco acquired two other West Coast chains, Wellpet, Inc. and The Pet Department, bringing its store number to 130. By 1988, the company had 40 Petco stores, mainly in California. The same year, Petco was acquired by two private-equity firms, The Spectrum Group, Inc. and the Thomas H. Lee Company, and subsequently began acquiring other pet stores.By 1990 Petco was heavily in debt, and Brian K. Devine of Toys "R" Us was hired to turn the company around as president and CEO. Devine rebranded the acquired WellPet and Pet Department stores Petco, also hiring new leadership and extending the chain's credit. Devine eschewed a big-box discount store model, instead prioritizing premium merchandise such as natural or organic pet food. He also brought in aquariums and fish to increase foot traffic.Petco introduced Red Ruff the dog and Blue Mews the cat as its logo mascots in 1991, and the following year it adopted the tagline "Where the pets go". In 1992 the company opened its first stores on the East Coast, also opening an East Coast distribution center.

1994-2000s

In 1994 Devine became chairman in addition to president and CEO, a role he held until 2015. Petco went public on the NASDAQ under the stock ticker PETC, in 1994. The initial public offering provided capital for further expansion. From 1990 through 1995, Petco opened between 20 and 50 stores yearly.By 1995, Petco and PetSmart had established themselves as the largest pet food and supply chains in the United States. The companies featured services such as obedience training, dog grooming, and pet vaccinations, and hosted pet adoption events in their stores. Differentiating itself from PetSmart, however, Petco located its stores in different areas, and limited its store size to avoid the warehouse format, among other differentiating factors.

In 1997 Petco acquired 104 new stores, in large part from purchasing the competing chain PetCare in the Midwest and South. The aggressive growth in 1997 proved costly, and in 1998 Petco accrued $8 million in net losses and its stock value dropped significantly.In July 1999, Petco invested $66 million in Petopia, a startup e-tailer, for 20% of the company. Petopia.com launched in August 1999. After the collapse of the dot-com bubble, in 2000 Petopia sold most of its assets to Petco. By 2001 Petopia.com redirected to Petco.com, with Petco utilizing Petopia.com's assets to create its own e-commerce site.In May 2000, Petco agreed to a $600 million leveraged buyout by Leonard Green & Partners and TPG Capital . With LGP and TPG contributing $92.5 million each in equity, their buyout deal closed in October 2000 and Petco was taken off the NASDAQ. LGP and TPG again took Petco public on the NASDAQ in 2002, retaining majority control until 2004.In 2003, Petco bought the naming rights to San Diego's downtown baseball stadium, making it Petco Park when opened in 2004. Petco committed $60 million to the San Diego Padres for 22 years of naming rights. At the time, it was one of the highest prices paid for naming rights to a baseball park.James Myers, who had previously been Petco's chief financial officer, became CEO of Petco in March 2004. He had been with Petco since 1990. He was succeeded as CEO in 2017 by Brad Weston, previously company president and chief merchandising officer."Think Adoption First" is a company philosophy and program, which encourages pet adoption rather than the purchase of companion animals whenever possible. Petco was criticized for selling large exotic birds in their shops, and in 2005, after pressure from PETA, Petco agreed to stop selling parrots and other large birds. Petco has never sold dogs or cats.In the wake of reported distribution accounting errors, Petco's stock in mid July 2006 had dropped 50% from a high in January 2005. On July 14, 2006, Petco announced it would again be taken private in a leveraged buyout by LGP and TPG; the deal included the assumption of $120 million of Petco's debt, for a total transaction value of $1.8 billion. The acquisition by LGP and TPG closed in October 2006.The company stopped selling rabbits in 2008 to cut down on rabbits being surrendered to shelters. After the company stopped selling dog and cat food made in China several years previously, in January 2015, Petco was the first national pet retailer to stop selling dog and cat treats made in China, fulfilling a promise it had made in May 2014.

2010-2020s

In 2011 Petco also opened a satellite headquarters in San Antonio, Texas to supplement its San Diego main office. It also changed its logo and tagline. The company expanded to Puerto Rico, opening a store in San Juan in 2012, and one in Ponce in 2013. Petco, through a joint venture with Grupo Gigante, also opened the first of several stores in Mexico in 2013.In 2015, Petco acquired Drs. Foster and Smith, at the time the largest online retailer of pet supplies in the US. The purchase of Drs. Foster and Smith gave Petco an entry into the "veterinary prescription medicine" market, while allowing Petco to launch new lines of the brand's pet foods. Petco closed all operations of its Drs. Foster and Smith subsidiary in early 2019, redirecting the e-commerce site to Petco.com and filling prescriptions via Express Scripts. The Drs. Foster and Smith brand LiveAquaria.com was sold to Tropical Fish International in August 2020.In 2015 Leonard Green & Partners and Texas Pacific Group investigated divesting Petco, and that August, Petco filed for another initial public offering.

When subsequent merger discussions between Petco and PetSmart stalled over antitrust risks, Petco was acquired by CVC Capital Partners and the Canada Pension Plan Investment Board in a deal worth US$4.6 billion in February 2016, with Petco withdrawing its IPO plans.In August 2018, a partnership was signed with Canadian Tire to begin selling Petco's private label brands of pet food and accessories at its 500 Canadian stores, bringing Petco to the Canadian market. In November 2018, Petco announced that it would stop selling pet food and treats containing artificial colors, flavors, and preservatives, banning certain artificial ingredients. In 2020, Petco ended the sale of shock collars in its stores.Petco had yearly revenues of $4.1 billion in 2020, and was the 107th largest private company in the United States. The company once again changed its logo and tagline in October 2020.

2021

In January 2021, Petco held its third IPO, with the intent of using the proceeds to pay down debt. In conjunction with the listing, the company changed its corporate name from Petco Animal Supplies, Inc. to Petco Health and Wellness Company, Inc. That same month, the company began trading again on the NASDAQ under a new symbol, WOOF. The IPO raised $864 million, and CVC Capital Partners and Canada Pension Plan Investment Board retained control as majority owners.In April 2021, Petco removed 32 traditional rawhide products, to be replaced with products that were "more easily digestible" for dogs. Also that month, Petco announced that half of all its products would be "sustainable" by the end of 2025.


Mission
Healthier Pets. Happier People. Better World

Key Team

Mr. John M. Zavada (Chief Admin. Officer)

Mr. Darren MacDonald (Chief Customer Officer)

Ms. Kristine Moser (VP of Strategic Financial Planning & Analysis and Investor Relations)

Ms. Ilene Eskenazi (Chief Legal & HR Officer)

Mr. David Hallisey (Sr. VP & Chief Communications Officer)

Ms. Katherine Nauman (Chief Marketing Officer)

Mr. Jason Heffelfinger (Chief Services Officer)


Recognition and Awards
Petco won 3 awards in 2017. In 2017, Petco won for Best Company Culture, Best Company for Women and Best Compensation. Based on 6,238 ratings and 514 participants, employees at Petco are less satisfied with their work experience. The overall culture score, 56/100 or D, incorporates employee ratings based on their feedback on the Team, Manager, Retention and more.

References
Petco
Leadership team

Mr. Ronald Coughlin Jr. (Chairman & CEO)

Mr. Brian LaRose (Chief Financial Officer)

Mr. Justin Tichy (Chief Pet Care Center Officer & COO)

Products/ Services
Pet, Retail, Service Industry
Number of Employees
20,000 - 50,000
Headquarters
San Diego, California, United States
Established
1965
Company Registration
SEC CIK number: 0001826470
Net Income
100M - 500M
Revenue
Above - 1B
Traded as
WOOF
Social Media