Petco's CEO says the company can barely keep up with demand for training and grooming services after millennials and Gen Z bought 11 million new pets last year
Petcois overwhelmed by demand for pet grooming, training, and veterinary services.
- Petco CEO Ron Coughlin told Bloomberg the growth is due to the rise in pet adoptions in 2020.
- Coughlin said 11 million
petswere adopted in 2020, mostly by millennials and Gen Z.
Petco is trying to keep up with surging demand for its grooming, training, and veterinary services after millions of pets were adopted during the pandemic.
"Our training and our grooming is getting overwhelmed with demand," Ron Coughlin, Petco's CEO, told Bloomberg on Thursday. "Our vet hospitals and our vet clinics are having more and more demand as people feel more comfortable coming out."
Coughlin added that Petco is adding additional capacity to those services in order to keep up with the influx of customers.
Petco posted better-than-expected first-quarter earnings this week, adding 1.2 million new customers at the start of the year and reporting $1.41 billion in revenue. Coughlin told Bloomberg that the company's growth is due to the rise in pet adoptions in 2020.
"We saw 11 million new pets in 2020," he said. "The majority of pets were adopted by millennials and Gen Zers, and millennials and Gen Zers actually spend more on their pets."
Coughlin added that Petco is expecting a similar increase in new pets in 2021, and that the pet category as a whole is projected to grow 9%.
Read more: How Poshmark plans to capitalize on the pet adoption and resale boom by launching a pets category on its platform
Throughout the pandemic, animal shelters and breeders reported shortages in pets, particularly
"Often, pet is a fairly recession-proof category," Rod Sides, vice chairman of
That spike in pet ownership fueled the growth of several other pet-centric businesses. Pet-care startup Rover initially saw its business dry up when the pandemic forced people to stay home. But the surge in new pets and the ability for people to start leaving the house led to demand for dog-walkers once again - now, Rover is going public at a $1.35 billion valuation.
Other companies, like online pet pharmacy Chewy, pivoted their business to telehealth amid the pandemic, which resulted in sales spiking 50% in the second quarter of last year.
- I bought a car wash at 22 years old. It basically runs itself — and I make $5,500 in passive income each month.
- Companies say Elon Musk's plan to charge $1,000 for month for Twitter checkmarks is 'outlandish' and makes them 'meaningless'
- A lawyer who quit to become an OnlyFans performer says she now makes more money and is happier
- SEBI recovers dues worth ₹6.57 crore from Sahara Group firms, Subrata Roy & others
- Electronic manufacturing services firm Avalon Technologies’ ₹865 crore IPO to open on April 3
- Sky gazers in for celestial treat tonight with 5 planets forming an arc
- Sensex, Nifty close marginally down in volatile trade
- After disappointing 2022, wind industry to expect record installations over the next three years: GWEC report