Petco Health and Wellness Company, Inc. is an American pet retailer with corporate offices in San Diego and San Antonio. Petco sells pet food, products, and services, as well as certain types of live small animals.
Founded in 1965 as a mail-order veterinary supply company in California, it grew into a pet food and supplies chain. Acquired by The Spectrum Group, Inc. and the Thomas H. Lee Company in 1988, it went public on the NASDAQ in 1994. It was subsequently bought by Leonard Green & Partners and Texas Pacific Group in 2000. In 2016 Petco was sold to CVC Capital Partners and the Canada Pension Plan Investment Board, who retained control when Petco held its third IPO in January 2021.
As of 2021, the company has approximately 1,500 Petco stores across the United States, Mexico, and Puerto Rico. Stores sell pet food, pet supplies, small animals, and fish. Some stores offer services such as obedience training, dog grooming, pet vaccinations, and veterinary care, while also hosting adoption events. Unleashed by Petco are smaller stores that do not sell live animals. The company also owns the PetCoach app, PetInsuranceQuotes.com, and Vital Care, a subscription service for veterinary care.
The company owns the naming rights to the Petco Park baseball stadium, which is home of the San Diego Padres. Petco had yearly revenues of $4.1 billion in 2020, and was the 107th largest private company in the United States.
History
1965–1993
Petco originated when Walter Evans, a co-owner of a Missouri-based distributor of pet supplies and products called United Pharmacal Company (UPCO), 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.