Petco Animal Supplies
Careers at Petco Animal Supplies
MISSION
Petco Animal Supplies Inc (“Petco”) aims to be a leading provider of animal and pet supplies, functioning as an efficient and reliable one-stop shop for pet owners across North America.
FOUNDING STORY
Petco was founded in 1965 as a mail-order business selling veterinary supplies under the name UPCO. The Company later changed its focus to retail, opening several pet stores in California.
In 1979, the Company changed its name to Petco and a year later opened its first store outside of California in Tigard, Oregon.
Petco began to expand its operations more rapidly in the late 1980s following its acquisition of pet supply chains WellPoint and the Pet Department, through which it more than tripled its the number of Petco stores from 40 to 130 and expanded the Company's footprint in Oregon and into Washington and Texas.
Petco expanded onto the East Coast in the early 1990s, opening stores in New Jersey, and in 1994, the Company lists on the NASDAQ.
By this time the Company operated a network of 218 stores in 13 states.
Petco later returned to the stock market before being privatised again in 2016 by CVC Capital Partners and Canada Pension Plan Investment Board.
The Company has continued to expand its operational presence across the US and internationally, and currently operates a network of more than 1,500 stores across the US, Puerto Rico, and Mexico. Petco is among the largest and most well-known pet store brands in North America.
Business model of Petco Animal Supplies
Customer Segments
Petco operates a network of retail stores that are tailored specifically to the needs of pet owners or prospective pet owners.
The Company serves customers across a wide range of demographics, but typically serves consumers across the following categories:
- Middle and Higher Income Consumers, comprising more affluent consumers across middle and higher income brackets who have more disposable income to spend on the caring for their pets;
- Younger Consumers, comprising consumers aged under 35 who make up a significant portion of the Company’s core customer base; and
- Health Conscious Consumers, comprising consumers who are concerned with sustainability and environmental stability who are attracted to the Company’s various organic and sustainable product options.
Petco is headquartered in the US, which is the Company’s core market. The Company serves a broad customer base across the US, Puerto Rico, and Mexico.
Value Propositions
Petco provides value to its customers in the following ways:
- Brand Strength and Standing – Petco is one of the largest and most well-known pet store operators in North America, with a positive reputation for good service and high quality products that dates back to the mid twentieth century;
- Range of Products and Services – Petco offers a wide range of pet products – including pet beds and kennels, treats and food, and other accessories – as well as a range of services, such as grooming, dog training, pet insurance, and veterinary services;
- Sales Reach and Accessibility – Petco operates an extensive network of 1,500 sales outlets across the US, Puerto Rico, and Mexico as well as an online sales channel, ensuring that it is able to reach as broad a consumer base as possible; and
- Expertise and Experience – Petco employs in-store personnel who are experienced pet owners and are able to advise customers on what pet products are appropriate, what services are required, and ways to care for certain animals.
Channels
Petco serves its customers directly via its network of retail outlets across the US, Puerto Rico, and Mexico.
The Company currently operates more than 1,500 stores, which are staffed by the company’s in-store sales and service personnel.
In addition to its numerous physical retail locations, Petco operates an online store at www.petco.com, through which customers are able to browse and purchase a full range of products across its product ranges.
Petco’s retail online and offline retail operations are supported by the Company’s distribution and logistics infrastructure, including storage facilities and distribution centres.
Customer Relationships
Petco primarily provides services directly to its customers. The Company’s in-store sales personnel interact personally with customers to assist in their shopping experience, responding to queries, handling complaints, and providing guidance.
The company notably employs personnel who are experts at pet acre and are able to provide specific guidance on pet ownership.
Petco seeks to encourage recurring business from its customers by providing high quality products at reasonable prices, supported by excellent customer service.
The Company also seeks to secure repeat business by offering various deals, discounts, and special offers
As noted above, Petco operates an online store at www.petco.com, through which customers can browse products, make purchases, and arrange deliveries on a self-service basis.
Petco operates a dedicated customer support team, which operates out of the Company’s offices and provides personalised support to customers over the phone and online.
The company is also able to communicate directly with customers through its various social media accounts, including with LinkedIn, Facebook, Twitter, and Instagram.
Key Activities
Petco operates as a retailer and online retailer of pet products. It operates a network of more than 1,500 retail outlets across the US, Puerto Rico, and Mexico, as well as an online sales channel.
The Company’s product catalogue includes a range of dog, cat, fish, small animal, reptile, bird, and other veterinary food, as well as veterinary diets, flea and tick treatment products, travel accessories, dental treats, biscuits and snacks, care and health products, grooming supplies, crates and kennels, and bowls and feeders.
The Company additionally offers a range of pet services, including veterinary services, dog training services, and pet insurance solutions.
Key Partners
Petco works in close conjunction with a wide range of companies and organisations in support of its core retail activities.
These partners can be organised broadly into the following categories:
Supply and Vendor Partners, comprising brands and original equipment manufacturers that provide products and merchandise for sale across the Company’s stores, as well as third party providers of services that support the Company’s corporate activities;
- Service Partners, comprising a range of companies and organisations that provide services – including veterinary and insurance services – to Petco customers on behalf of or in partnership with the Company;
- Affiliate and Marketing Partners, comprising a range of companies, websites, and agencies with which the company collaborates on affiliate marketing and advertising programs across the US; and
- Charitable and Social Partners, comprising a range of non-profits and charitable organisations with which the Company collaborates on projects aimed primarily at protecting, rescuing, and supporting animals.
Petco has launched a number of partnerships in recent years.
This includes charitable partnerships with Mission K9, Coalition for Pets and Public Safety, and Lifeline Animal Project, as well as commercial partnerships with Skechers, Champion pet Foods, and Express Scripts.
Key Resources
Petco’s business model depends on its ability to reliably and efficiently provide pet owners with pet care products.
As such, the Company’s key resources are its brand and intellectual properties, its product inventory and supply chain, its network of stores, its online sales channel and IT infrastructure, its distribution and storage infrastructure, its partnerships, and its personnel.
Petco notably controls a network of 1,500 stores across the US, Puerto Rico, and Mexico.
Cost Structure
Petco incurs costs in relation to the acquisition of products and merchandise, the procurement of third party services, the operation of its network of retail stores and offices – including occupancy and utility costs, the implementation of marketing and advertising campaigns, the management of its partnerships, the management of its online store and IT infrastructure, the maintenance and operation of its distribution and storage infrastructure, and the payment of salaries and benefits to its personnel.
Revenue Streams
Petco generates revenue through the sale of pet products across its network of stores in North America.
The Company derives the bulk of its revenue in the form of sales fees collected directly from customers at point of sale, including across its network of stores and via its online sales channel.
The Company additionally generates revenue through the provision of ancillary pet care services.
Petco is a privately owned company and as such it is not obliged to disclose its financial results to the public.
According to an corporate aggregator, the Company recorded revenue for the year in 2018 of USD 3.82 billion.
Our team
info: Ron Coughlin (“Coughlin”) has served as Chief Executive Officer at Petco since joining the Company in June 2018. He is responsible for driving Petco’s overall business strategy, direction and overall company performance. Coughlin began his career at PepsiCo, where he held a series of leadership positions in the marketing department over a period of 13 years. This included spells as Senior Vice president and Chief Marketing Officer of PepsiCo International Beverages, in which capacity he was responsible for marketing activities across Pepsi, 7 Up, Gatorade, and Tropicana in all markets outside of the US. In 2007, he joined HP, where he served in consecutive senior vice president positions until his appointment in November 2014 as the company’s President of Personal Systems.
info: Mike Nuzzo (“Nuzzo”) has served as Petco’s Chief Financial Officer since April 2015 and as its President of Services and International since November 2018. In this capacity he is responsible for leading the Company’s overall financial strategy and execution, with accountability for finance, information technology, legal, investor relations, supply chain, and business development functions, as well as for spearheading its services transformation strategy. In his early career, Nuzzo held a number of leadership positions at fashion retailer Abercrombie and Fitch, including a spell as Senior Vice President of Finance. In 2008, he joined GNC as Executive Vice President and Chief Financial Officer, a role he held for close to six years before moving to 4moms as Chief Administrative Officer and Executive Vice President of Business Development in 2014. This was his last role before joining Petco.
info: Tariq Hassan (“Hassan”) has served as Chief Marketing Officer at Petco since joining the Company in July 2018. In this capacity he is responsible for leading Petco's enterprise marketing strategy across its operating markets. Hassan additionally serves in advisory roles at Viral Nation Inc, Bravvura Ventures, and Idea Wave Labs. Hassan began his career in 1994 as an account director for DMB&B in Dubai. In 1998, he joined Leo Burnett Advertising as a senior account planner, following which he served for just a year as Vice President and Planning Director at FCB Global before moving to Element79 Limited as Senior Vice President and Chief Strategic Officer. Between 2008 and 2012, Hassan held senior leadership positions at HP, including a spell as Senior Vice President of Global Brand Experience, Sponsorships, and Brand Activation, and from 2012 to 2014 he was President of MEA at Omnicom Group. Prior to joining Petco, Hassan served as Head of Enterprise Brand Strategy at Bank of America.
