Petco Builds Around ‘Integrated Omnichannel’ Experiences

Why It Matters

Petco’s omnichannel push illustrates how traditional retailers are leveraging digital‑physical synergy to offset sales pressure and stay competitive in the fast‑growing pet industry.

Key Takeaways

• FY2025 net sales fell 2.5% to $5.96 billion.
• Comparable sales down 1.6%, outpacing net sales decline.
• Integrated omnichannel targets BOPIS, loyalty relaunch, media network.
• Four‑prong strategy emphasizes product, services, store experience, omnichannel.
• Store count at 1,382 after closing 16 underperforming locations.

Pulse Analysis

Petco’s latest earnings reveal a modest contraction in both net and comparable sales, with FY2025 revenue slipping 2.5% to $5.96 billion and comparable sales down 1.6%. The decline follows a broader slowdown in discretionary spending and heightened competition from pure‑play e‑commerce players such as Chewy. By closing 16 underperforming stores, the retailer trimmed its footprint to 1,382 locations, a move that modestly cushioned the top‑line impact. Nonetheless, the gap between net and comparable sales underscores the growing importance of digital channels in a market where pet owners increasingly shop online for convenience and variety.

To reverse the trend, Petco is betting on an ‘integrated omnichannel’ model that blends brick‑and‑mortar strength with digital agility. CEO Joel Anderson outlined a four‑prong strategy: compelling product assortments, scalable services like in‑store veterinary care, a trusted store experience, and a seamless omnichannel layer. Key initiatives include expanding BOPIS for fresh food, relaunching a data‑driven loyalty program within its mobile app, and opening its retail media network to third‑party brands. These tactics aim to lift basket size, improve fill rates, and generate incremental media revenue while deepening customer engagement across touchpoints.

The Petco playbook reflects a broader industry shift where legacy retailers must fuse physical and digital experiences to stay relevant. If the loyalty relaunch and media network gain traction, Petco could capture higher share of wallet from pet owners who value personalized offers and convenient fulfillment. Success will also hinge on execution—optimizing page load times, inventory visibility, and staff training to support the omnichannel promise. Competitors that lag in integration may see market share erosion, while those that master the model could set a new standard for pet retail, influencing everything from supply‑chain logistics to advertising spend.