Petco is shutting down more stores as it tries to rework its business in a market increasingly dominated by online rivals.
The pet supply chain has already closed 24 locations this year and says another 20 to 30 will follow before the end of 2025. The closures will leave Petco with fewer than 1,400 U.S. stores, down from nearly 1,500 just a few years ago.
CEO Joel Anderson said the move is part of a larger transformation plan aimed at cutting costs and bringing shoppers back into stores. “The key for us to successfully move to Phase 3, a return to growth, is to give customers a reason to step away from their screens and shop with their pets,” he said during the company’s earnings call.
So far, revenue has been slipping — net sales fell 2.3% year over year in the second quarter, with comparable sales down 1.4%. But profits have improved thanks to cost-cutting, with net income climbing to $14 million compared to a loss last year.
To spark foot traffic, Petco has leaned on emotional branding and in-store events. Over the summer, it revived its “Where the Pets Go” slogan and rolled out family-friendly promotions, from pet food tastings to a Shark Week–themed fish feeding. “Petco truly is where the pets go in real life,” Anderson said.
Even with those efforts, the chain trails its main brick-and-mortar competitor. PetSmart continues to lead with more than 60% of U.S. pet store visits, according to Placer.ai, while Petco holds about 38%. Both are also battling e-commerce heavyweights like Chewy, Amazon, and Walmart, which dominate repeat purchases for food and supplies.
Petco says its store closures are targeted and strategic, focusing on underperforming locations. As of September, confirmed closures include stores in Arizona, California, Illinois, Massachusetts, Michigan, New Jersey, Oregon, Texas, Washington, Pennsylvania, and the District of Columbia. The full list is expected to grow as the company finalizes decisions by year’s end.
For now, Petco is betting that fewer stores, tighter operations, and more experiences inside its remaining locations will help it claw back customers who’ve grown used to shopping for their pets online.