Dive Brief:
- Amid continued growth, Petco Health and Wellness Company has expanded its partnership with DoorDash to deliver its products on-demand, according to a Thursday press release. The retailer is offering more than 10,000 products on the DoorDash Marketplace, including food, treats, beds, bowls, toys and other supplies.
- The pet retailer also updated its app. A pet profile feature gives shoppers a centralized way to store information regarding their pets’ nutritional needs, vaccinations and grooming appointment reminders.
- Petco also integrated Klarna’s interest-free "Pay in 4" payment option within its mobile app, per the press release. Klarna’s installment payment option has been available to customers in more than 1,500 locations across the U.S. and the Klarna app since August 2021.
Dive Insight:
Petco’s expansion of its Klarna and DoorDash partnerships are part of its efforts to offer more services to its customers in stores and online.
Petco is part of a growing list of major retailers offering DoorDash deliveries, including Staples, Sephora, Walgreens, Victoria’s Secret and Party City.
“Our expanded partnership with DoorDash makes Petco’s differentiated assortment of health and wellness products accessible to even more pet parents across the country,” Darren MacDonald, chief customer officer at Petco, said in a statement. “Combined with new enhancements to the Petco app, we’re continuing to meet the unique needs of pets and pet parents in a way that no one else can.”
Besides adding more features to its mobile app, Petco has enhanced its pet wellness offerings with insurance plans. Last fall, the retailer partnered with Nationwide to offer pet owners insurance coverage for Petco’s pharmacies, veterinary hospitals, clinics and other health programs.
Meanwhile, the retailer has also been widening its brick-and-mortar reach. The company debuted a 25,000-square-foot Union Square flagship pet care center in New York City this summer. The store features a photobooth for newly adopted pets and their owners, an indoor dog training park, grooming salon and veterinary hospital, among other services. The retailer also announced this summer that it is growing the number of shop-in-shops in Lowe’s locations from 15 to nearly 300 stores.
Petco has been growing its in-store and online offerings following an uptick in customers. In its first quarter, net revenue increased 5.4% to $1.56 billion, with comparable sales increasing 5.1% year over year. The company reported a net loss of $1.9 million compared to a net income of $24.7 million in the year ago period. In March, the retailer said it added 1 million net new customers in 2022.
