Petco
Major pet supplies retailer and services provider.
PE-OWNED
Acquired by KKR2016-01-01
What Made It Great
Health and wellness solutions for pets and pet parents.
What PE Will Likely Do
Increased prices for pet food, supplies, and services like grooming and training
Reduction in availability and quality of premium and specialty pet food brands
Fewer live animals available for adoption or purchase at Petco locations
Decreased staffing at Petco stores leading to longer wait times and less personalized service
Deferral of store renovations and maintenance, resulting in a decline in store cleanliness and appearance
Expected Timeline
“0 to 6 months months”
Announcements about 'optimizing operations' and 'improving efficiency'
“6 to 12 months months”
First round of store closures and staff reductions announced
“12 to 24 months months”
Fewer specialty pet food brands available, live animal availability declines, store maintenance issues become noticeable
“24 to 48 months months”
Significant price increases on pet food and supplies, longer wait times for services, more aggressive cost cutting
“48 to 60 months months”
Potential restructuring, fire sale, or bankruptcy
What You Can Do
Actions
Closely monitor pricing and availability of your preferred pet food and supply brands at Petco
Be prepared for potential declines in store cleanliness and customer service quality
Consider shopping at alternative pet retailers or online stores that may offer more stable pricing and selection
Alternatives
Look for family-owned or employee-owned businesses