Dive Brief:
- In a program expansion, Lowe’s is growing its Petco shop-in-shop partnership from 15 stores to nearly 300 locations by the end of the year.
- Lowe's Petco store-in-stores will carry a range of products including nutrition, flea and tick solutions and Petco private brands, according to a company announcement.
- Petco’s Vetco Clinics will also be available once a month at 75 locations and staffed by a licensed veterinarian. Services include vaccinations, microchipping and preventative medicine.
Dive Insight:
The rapid expansion of Petco store-in-store locations is part of Lowe’s larger strategy of serving rural customers.
“While in years past, our penetration of rural and remote stores was viewed as a competitive disadvantage, we now expect these stores will be a key component of our operating profit growth over the next three to five years,” Lowe’s CEO Marvin Ellison said on a call with analysts in May.
The retailer this spring announced intentions of scaling its rural store format to up to 300 more locations by the end of 2023. Those locations will offer a wider range of farm, ranch and outdoor products.
Meanwhile, the shop-in-shop collaboration with Petco means introducing new brands and services to those populations.
“By expanding our store-in-store footprint, we're offering more tailored products and services to meet the unique needs of our customers in rural and remote areas, streamlining the shopping experience," Bill Boltz, Lowe's executive vice president of merchandising, said in a statement regarding the partnership.
Lowe’s tie-up with Petco launched in early 2022, with the first location rolling out in Alamo Ranch, Texas, with 14 additional locations following in Texas, North Carolina and South Carolina.
"Our initial pilot program with Petco resonated with our existing, loyal shoppers and introduced new customers to Lowe's," Boltz said.
Petco has also been chasing a rural demographic. The company introduced a rural store concept, dubbed Neighborhood Farm & Pet Supply, last year as a means of providing a “one-stop shop” for customers buying products for pets and farm animals.
