PETCO plans to close up to 30 stores this year amid efforts to shift its focus to more profitable areas.
CEO Joel D. Anderson is betting on two key service offerings to lift the company’s sliding sales.
Petco is strategically closing up to 30 underperforming stores in 2025[/caption]
Petco reported a return to profitability in the second quarter of 2025 – despite revenue falling to $1.49 billion.
While the company expects a slight decline in net sales, it issued guidance projecting $6.1 billion in revenue and $50.2 million in earnings by 2028.
This forecast represents an annual revenue decline of 0.5 per cent, but a $78.4 million increase in earnings from the current loss of $28.2 million.
Luckily for pet owners, Petco is not going bust.
Instead, it is undergoing a strategic turnaround – closing underperforming stores and doubling down on its most profitable services.
The company is shifting its focus to higher-margin services like grooming and veterinary care, according to an analysis by Simply Wall St.
Pet owners can still order online or pop into nearby stores if their local shop closes.
Petco Health and Wellness Company was founded in 1965 in San Diego, California.
The company, which started as a mail-order veterinary supply business, has grown into a nationwide chain of about 1,393 full-service pet care centers.
Petco offers grooming, veterinary care, pet training, adoption events, while also selling pet food, treats, supplies, accessories, medications and health products.
The retailer closed 25 underperforming stores in 2024.
It comes as Kohl’s CEO has confirmed at least four key changes to help customers score great deals at affordable prices.
The retailer has faced a rocky few months but is showing signs of a quiet comeback.
During an earnings call on August 27, Kohl’s surprised Wall Street with better-than-expected quarterly results.
A major driver behind this improvement was an adjustment to Kohl’s famous Kohl’s Cash coupons.
Earlier in 2025, the company expanded the coupon offerings, sparking renewed customer interest.
“This change generated an immediate positive response in our digital channel where pricing transparency plays a significant role in customer decision making,” Bender explained.
“As the quarter progressed, we saw the performance improve in our stores as we increased investment in in-store signage and marketing.”
Another three major changes were also recently introduced in the stores, as reported by The U.S. Sun.
Meanwhile, earlier this spring, Kohl’s axed 27 underperforming locations in 15 states to improve its footprint.
Petco is shifting its focus towards higher-margin services to boost its profits[/caption]
