Petco

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Petco Health and Wellness Company, Inc.
FormerlyPetco Animal Supplies, Inc.
TypePublic
IndustryRetail
GenrePet store
Founded1965; 56 years ago (1965)
HeadquartersSan Diego, California, U.S.
Number of locations
1,500[1]
Areas served
United States, Mexico, Puerto Rico
Key people
Ron Coughlin (CEO)
ProductsPet supplies, Live animals
BrandsUnleashed by Petco, PetCoach, PetInsuranceQuotes.com
RevenueIncrease US$4.1 billion (2020)[2]
Owners
Number of employees
27,000 (January 30, 2021)
Websitepetco.com
Petco headquarters in San Diego
Sign on an Unleashed store that opened in Oregon in 2013

Petco Health and Wellness Company, Inc., formerly Petco Animal Supplies, 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 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.[3][4]

"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.[5] Petco has never sold dogs or cats, and in 2008, the company stopped selling rabbits as well.[6]

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[]

Petco originated when Walter Evans, a co-owner of a Missouri-based distributor of pet supplies and products[7] 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. Evans opened his first retail store in 1976 in La Mesa, California, selling pet and veterinary supplies.[8][9][10]

In 1988, 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.[11] In March 1994, Petco went public on the NASDAQ under the stock ticker PETC.[12] The initial public offering provided capital for further expansion.[13]

In May 2000, Petco agreed to a $600 million leveraged buyout by Leonard Green & Partners (LGP) and TPG Capital (TPG).[14] When subsequent merger discussions between Petco and PetSmart[15] stalled over antitrust risks,[16]

In 2003, Petco bought the naming rights to San Diego's downtown baseball stadium, making it Petco Park[17] 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.[18]

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,[19] previously company president and chief merchandising officer.[20]

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.[21] The acquisition by LGP and TPG closed in October 2006.[22]

In 2011 Petco also opened a satellite headquarters in San Antonio, Texas to supplement its San Diego main office.[23] The company expanded to Puerto Rico, opening a store in San Juan in 2012, and one in Ponce in 2013.[24] Petco, through a joint venture with Grupo Gigante, also opened the first of several stores in Mexico in 2013.[25]

Petco was acquired by CVC Capital Partners and the Canada Pension Plan Investment Board in a deal worth US$4.6 billion[26] in February 2016, with Petco withdrawing its IPO plans.[27]

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.[28]

Petco had yearly revenues of $4.1 billion in 2020, and was the 107th largest private company in the United States.[29] 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.[30][31] 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.[32]

Products and services[]

Petco stores sell products such as pet food, pet supplies, small animals, and fish. Petco also owns and operates PetCoach, a web service and app that providing pet advice. It owns PetInsuranceQuotes.com, a pet insurance comparison website. The company offers services and hosts adoption events; some stores offer obedience training, dog grooming, pet vaccinations, and veterinary care.[3]

Staff and facilities[]

The company has approximately 1,500 Petco stores across the United States, Mexico, and Puerto Rico.[3] As of November 23, 2020, Petco had 27,000 employees and was headquartered in San Diego, California.[33]

In June 2018, Ron Coughlin, a veteran Hewlett-Packard and PepsiCo executive, took over as CEO.[34]

Legal issues[]

In June 2010, prosecutors from Marin, Los Angeles, San Diego, San Mateo, and Santa Barbara counties announced that Petco had agreed to settle a $1.75 million consumer protection lawsuit, without admitting liability. The settlement stems from a lawsuit filed in San Diego Superior Court that alleges Petco overcharged its customers and improperly cared for some animals, following inspections of Petco stores throughout California from 2005 through 2008. Petco paid more than $850,000 to resolve a similar case in 2004.[35]

In September 2011, a Petco location in Johnson City, New York came under fire when nearly 100 animals drowned during a flood caused by Tropical Storm Lee.[36] Despite severe weather warnings and flood advisories for the nearby river in the days prior, including from the National Weather Service (as stated by the Johnson City police), Petco initially claimed it had not received warnings, and that the casualties were caused by a backup in the store's drain/sewage line, not by the flooding that submerged the store in four feet of water. Johnson City Mayor Dennis Hannon called Petco's initial claims "absurd", and stated that "for them not to go down there is just absolutely disgusting", alluding to the sewer/drain line backup being only a small part of the problem.[36][37][38] On September 12, 2011, Petco issued a statement accepting full responsibility for the event, saying that they "misjudged" the risk of a flood. PETA called for a criminal investigation against Petco.[39][40] In 2013, a 10-year-old boy died when he contracted rat-bite fever from his pet rat and his family filed a lawsuit against Petco.

Petco Foundation[]

The Petco Foundation, an independent nonprofit organization, has raised more than $200 million since it was created in 1999 to help promote and improve the welfare of companion animals, and spends more than $30 million to support this cause annually.[41][42] Petco and the Petco Foundation work with and support thousands of local animal welfare groups across the country to host in-store adoption events and help find homes for adoptable dogs, cats, and other companion animals. The foundation also supports spay and neuter efforts, animal assistant therapy programs, and education about the humane treatment of animals.

On January 24, 2019, the Foundation partnered with Skechers, which pledged to donate a portion of its BOBS from Skechers charity's proceeds to the Petco Foundation.[43][44] On April 15, 2019, it was announced that the Foundation had donated $500,000 to the Animal Services department of El Paso, Texas to create an exhibit of adoptable domestic cats at the El Paso Zoo.[45] In 2021, Petco debuted its "Love Lost facial recognition program", which uses a database to help locate missing dogs in the shelter system.[46]

See also[]

References[]

  1. ^ "About Petco". Petco.com. Retrieved September 8, 2017.
  2. ^ "Petco Animal Supplies". Forbes.
  3. ^ a b c https://corporate.petco.com/
  4. ^ Harvey, Katherine P. (4 September 2013). "Petco taking over PetPeople stores". The San Diego Union-Tribune. Retrieved 27 September 2021.
  5. ^ "Urge Petco to Stop Selling Birds, Reptiles, Fish, and Others". PETA. Retrieved 29 November 2021.
  6. ^ Lovett, Ian (19 April 2014). "When Delight Turns To Reality, It's Goodbye, Easter Bunny". The New York Times. Retrieved 28 November 2021.
  7. ^ Jennings, Jason (5 May 2005). Think Big, Act Small: How America's Best Performing Companies Keep the Start-up Spirit Alive. ISBN 9781101118214.
  8. ^ "Petco offers a full range of products, services for pets and their 'parents'".
  9. ^ "Company history". Petco.com. Retrieved 28 September 2016.
  10. ^ Schaffer, Michael (31 March 2009). One Nation Under Dog: Adventures in the New World of Prozac-Popping Puppies, Dog-Park Politics, and Organic Pet Food. 2009. 9780805087116. ISBN 9781429962728. Retrieved 6 December 2021.
  11. ^ Jennings, Jason (5 May 2005). Think Big, Act Small: How America's Best Performing Companies Keep the Start-up Spirit Alive. ISBN 9781101118214.
  12. ^ "PETCO ANIMAL SUPPLIES INC - 10-K Annual Report - 02/03/1997".
  13. ^ "International directory of company histories." Volume 200, Steven Long; Derek Jaques; Paula Kepos. Publisher: Farmington Hills, Mich.: St. James Press, 2018
  14. ^ "Company News; Management-Led Group To Buy Petco for $505 Million". The New York Times. 18 May 2000. Retrieved 6 December 2021.
  15. ^ Hirsch, Lauren; Greg, Roumeliotis (18 September 2015). "Exclusive: Petco begins merger talks with PetSmart - sources". Reuters. Retrieved 7 December 2021.
  16. ^ Roumeliotis, Greg; Hirsch, Lauren (10 October 2015). "PetSmart-Petco merger talks stall over antitrust risk: sources". Reuters. Retrieved 7 December 2021.
  17. ^ Glater, Jonathan D. (28 April 2003). "Ill Will Grows Over San Diego Stadium". The New York Times. Retrieved 7 December 2021.
  18. ^ Harvey, Katherine P. (May 5, 2014). "10 years in, were Petco naming rights worth it?". San Diego Union-Tribune. Retrieved 28 September 2016.
  19. ^ Stone, Ken (28 September 2016). "Petco Gets New Top Dog: CEO Jim Myers to Retire, Replaced by Brad Weston". Times of San Diego. Retrieved 8 December 2021.
  20. ^ De Crescenzo, Sarah (September 27, 2016). "Petco CEO Jim Myers Announces Retirement; President Brad Weston Named Successor". San Diego Business Journal. Retrieved 28 September 2016.
  21. ^ "Myers' Petco Goes Private Again". Forbes. Retrieved 19 December 2021.
  22. ^ "Pet store operator Petco files for new IPO". Seattle Times. Retrieved 19 December 2021.
  23. ^ Hendricks, David (September 28, 2011). "Petco formally opens S.A. corporate center". Retrieved December 27, 2019.
  24. ^ Kantrow-Vázquez, Michelle. "Petco opens 2nd Puerto Rico store in Ponce". NimB. Retrieved 19 December 2021.
  25. ^ P. HARVEY, KATHERINE. "Petco opens first Mexico store". San Diego Union-Tribute. Retrieved 19 December 2021.
  26. ^ "CVC, Canada's CPPIB to buy Petco for about $4.6 billion". Reuters. 23 November 2015.
  27. ^ Renaissance Capital. "Pet superstore operator Petco Holdings officially withdraws IPO after $4.6B acquisition". Nasdaq. Retrieved 7 December 2021.
  28. ^ Patterson, Craig (7 August 2018). "Canadian Tire Partners with US-Based Petco". Retail Insider. Retrieved 8 August 2018.
  29. ^ "Petco Animal Supplies". Forbes. Retrieved 19 December 2021.
  30. ^ Garcia, Tonya. "Petco poised for growth after business shift to pet wellness from pet food". MarketWatch. Retrieved 19 December 2021.
  31. ^ Egan, Matt. "Watch out, Chewy. This 55-year-old pet store is coming for you". CNN. Retrieved 19 December 2021.
  32. ^ Hytha, Michael. "Petco IPO Raises $864 Million as Retailer Returns to Market". Bloomberg. Retrieved 19 December 2021.
  33. ^ "Petco Animal Supplies". Forbes.
  34. ^ "Petco has a new CEO". sandiegouniontribune.com. 2018-06-20. Retrieved 2018-07-19.
  35. ^ "Petco to pay $1.75 million settlement after allegedly overcharging customers, improperly caring for animals". ContraCostaTimes.com. Retrieved 2012-11-02.
  36. ^ a b "PETCO discovery: Close to 100 animals lost in flood". Pressconnects.com. Retrieved 2012-11-02.
  37. ^ "Petco Pets Die In Flood | WBNG-TV: News, Sports and Weather Binghamton, New York | Local". Wbng.com. 2011-09-10. Retrieved 2012-11-02.
  38. ^ "Johnson City Update from Petco CEO, Jim Myers | The Petco Scoop Blog". Petcoscoop.com. 2011-09-11. Archived from the original on 2012-07-12. Retrieved 2012-11-02.
  39. ^ "Petco accepts 'full responsibility' for animals' deaths in Binghamton flood". Pressconnects.com. Archived from the original on 2013-01-31. Retrieved 2012-11-02.
  40. ^ "Johnson City Update from Petco CEO, Jim Myers | The Petco Scoop Blog". Petcoscoop.com. 2011-09-11. Archived from the original on 2012-07-12. Retrieved 2012-11-02.
  41. ^ "Petco Foundation". Charity Navigator. Retrieved 5 October 2017.
  42. ^ "Petco Foundation Surpasses $200 Million Invested in Lifesaving Animal Welfare Work Nationwide Since 1999". PetCo. Retrieved 5 October 2017.
  43. ^ "Petco Foundation Partners with Skechers". www.petproductnews.com. Retrieved 2019-04-19.
  44. ^ Casas, Gloria. "Petco Foundation surprises South Elgin animal shelter with check for $95,000". Elgin Courier-News. Retrieved 2019-04-19.
  45. ^ "El Paso Zoo to get exhibit of adoptable cats courtesy of $500,000 Petco Foundation grant". El Paso Times. Retrieved 2019-04-19.
  46. ^ Murillo, Michelle. "Facial recognition may help you find your lost pet". WTOP. Retrieved 1 December 2021.

External links[]

Media related to Petco at Wikimedia Commons


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