300 Petco Stores To Open in Rural Lowe's Stores

ClownLoach
Valued Contributor
Valued Contributor
Posts: 3237
Joined: April 4th, 2016, 10:55 pm
Has thanked: 59 times
Been thanked: 332 times
Status: Offline

Re: 300 Petco Stores To Open in Rural Lowe's Stores

Post by ClownLoach »

steps wrote: July 22nd, 2023, 1:00 pm I really prefer Petco over PetSmart. PetSmart to me is way overpriced and employees don't seem to be that knowledgeable about products. Petco stores seem to be well staffed and have a nice variety of product.
PetSmart is another big retailer that was destroyed by private equity. I only keep tropical fish which require many chemicals and additives to maintain the water chemistry. The products that most experienced fishkeepers use come from very reputable brands that have been around several decades and use patented, proprietary formulas that are scientifically tested like pharmaceuticals. PetSmart has replaced nearly all of the good brands with house brand products. I would never consider using noname, questionable chemicals in my aquarium. Something like a chlorine remover that doesn't work correctly would cause the near immediate death of all of my prized fishes, some of whom I have had more than a decade and due to size are worth hundreds of dollars each. Fish foods actually can and do affect the health of the fish, poor quality foods deliver less nutrition and the fish will lose color and become lethargic and prone to illness. I had trusted a food brand that apparently had nutritional deficiency and several of my prize fish literally started to experience malnutrition related disease where they were getting open sores on their body. Thus I'd never trust PetSmart brand food, or even entry level products from reputable brands like Tetra. It is very frustrating because PetSmart has put many quality pet stores out of business with what was a winning formula of the biggest and best selection coupled with lowest prices. Now they have SKU rationalized the selection down to the point where many stores have giant empty spaces between the walls and the aisles. The removal of brand name products means that now I'm forced to order most of my everyday need items from Amazon. Worse, some of the brands I buy are intentionally forbidden for sale on Amazon because their manufacturers want to protect brick and mortar stores - but those stores closed in many areas due to the impact of PetSmart. You could say they are worse than the impact Walmart has had. We know Walmart enters a market with low low prices and puts the competition out of business then has been known to raise prices back up. But at least Walmart doesn't remove all the product assortment once they're the only game in town. PetSmart has done exactly that and I am disgusted by their practices. Their private equity owners are shortsighted because they're forcing the customer to buy online from the competition, and thus accelerating their own demise.

Petco has the potential to be great. Their problem is that no two stores are alike, or even close to being alike. They change prototypes seemingly monthly. So you never know what you're going to find when you shop a Petco. It seems I'm lucky in that the store nearest me has a larger than chain average tropical fish department, and the assortment of accessories is very decent which has saved me a trip to specialty stores that are an hour or more away in San Diego. But other Petco stores may have little to no product at all. Standards are also inconsistent, but are improving greatly. My understanding is that Petco Financials are becoming very strong and stable with consistent growth every quarter for a few years now. I do believe they're taking share from PetSmart. I just wish they would settle on a working prototype then roll it out chain wide so that their stores are more consistent. In the past they have annoyed me because I've had to drive past two of their stores to get to one that carries the product I need, and in all of these cases store size/square footage was not a justification for the vastly different product assortment but rather prototype version. I really don't care what the store looks like if it's clean and well operated, but I do expect that when all your stores in the area are about the same 15K square feet that they're all going to have the same product for sale. Right now they aren't even close, which is a major advantage for PetSmart if they have what you need as all their stores carry the same stuff.
storewanderer
Posts: 14995
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 3 times
Been thanked: 346 times
Contact:
Status: Offline

Re: 300 Petco Stores To Open in Rural Lowe's Stores

Post by storewanderer »

steps wrote: July 22nd, 2023, 1:00 pm I really prefer Petco over PetSmart. PetSmart to me is way overpriced and employees don't seem to be that knowledgeable about products. Petco stores seem to be well staffed and have a nice variety of product.
This isn't what I've observed at all. I've found both to have below average service and Petco has higher in-store shelf prices than PetSmart (unless you order from the Petco website- the website actually has really good prices). Petco also tends to have a smaller product mix but in recent years has skewed their smaller product mix toward more high cost items/brands. Basically Petco has tried to get out of the commodity pet food business and focus on higher cost items that are less price sensitive.

Petco also charges sales tax on full retail price of many sale items (no other store does this- Petco claims if it is a "manufacturer supplied discount" on an item, it is taxable).

I haven't seen knowledgeable employees at either chain.
storewanderer
Posts: 14995
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 3 times
Been thanked: 346 times
Contact:
Status: Offline

Re: 300 Petco Stores To Open in Rural Lowe's Stores

Post by storewanderer »

ClownLoach wrote: July 22nd, 2023, 1:32 pm
steps wrote: July 22nd, 2023, 1:00 pm I really prefer Petco over PetSmart. PetSmart to me is way overpriced and employees don't seem to be that knowledgeable about products. Petco stores seem to be well staffed and have a nice variety of product.
PetSmart is another big retailer that was destroyed by private equity. I only keep tropical fish which require many chemicals and additives to maintain the water chemistry. The products that most experienced fishkeepers use come from very reputable brands that have been around several decades and use patented, proprietary formulas that are scientifically tested like pharmaceuticals. PetSmart has replaced nearly all of the good brands with house brand products. I would never consider using noname, questionable chemicals in my aquarium. Something like a chlorine remover that doesn't work correctly would cause the near immediate death of all of my prized fishes, some of whom I have had more than a decade and due to size are worth hundreds of dollars each. Fish foods actually can and do affect the health of the fish, poor quality foods deliver less nutrition and the fish will lose color and become lethargic and prone to illness. I had trusted a food brand that apparently had nutritional deficiency and several of my prize fish literally started to experience malnutrition related disease where they were getting open sores on their body. Thus I'd never trust PetSmart brand food, or even entry level products from reputable brands like Tetra. It is very frustrating because PetSmart has put many quality pet stores out of business with what was a winning formula of the biggest and best selection coupled with lowest prices. Now they have SKU rationalized the selection down to the point where many stores have giant empty spaces between the walls and the aisles. The removal of brand name products means that now I'm forced to order most of my everyday need items from Amazon. Worse, some of the brands I buy are intentionally forbidden for sale on Amazon because their manufacturers want to protect brick and mortar stores - but those stores closed in many areas due to the impact of PetSmart. You could say they are worse than the impact Walmart has had. We know Walmart enters a market with low low prices and puts the competition out of business then has been known to raise prices back up. But at least Walmart doesn't remove all the product assortment once they're the only game in town. PetSmart has done exactly that and I am disgusted by their practices. Their private equity owners are shortsighted because they're forcing the customer to buy online from the competition, and thus accelerating their own demise.

Right now they aren't even close, which is a major advantage for PetSmart if they have what you need as all their stores carry the same stuff.
Petsmart has had a big push on removing slow moving inventory items from their stores for a while now. That fish and accessories category has been one where they were not performing well on moving inventory for many years. At this point their fish category is watered down to the point that it is basically for the kid and parent who have never had a fish before and think it is a cool idea to get a glass bowl and spend 20 minutes picking the color of rocks to buy and spend another 20 minutes debating what color fish to buy. Then a week later when the bowl is muggy and needs to be cleaned they realize they didn't actually want a fish after all and that is the end of their fish adventure. Their fish category isn't for anyone serious about having a nice fish tank with a lot of unique fish types, etc.

Fish used to be a great category for Petco. It was always staffed, sometimes by multiple employees, the fish were pretty well cared for considering the number of tanks they had, and the assortment of accessories was impressive. Now the area is not staffed much more than the dog toy aisle, and it feels like they don't care about it.
mbz321
Assistant Store Manager
Assistant Store Manager
Posts: 773
Joined: March 11th, 2010, 7:52 pm
Has thanked: 114 times
Been thanked: 60 times
Status: Offline

Re: 300 Petco Stores To Open in Rural Lowe's Stores

Post by mbz321 »

ClownLoach wrote: July 22nd, 2023, 1:32 pm
Petco has the potential to be great. Their problem is that no two stores are alike, or even close to being alike. They change prototypes seemingly monthly. So you never know what you're going to find when you shop a Petco.
This right here. Over the years, they closed a lot of larger dumpier locations that got absolutely killed by close by Petsmart locations. About 10 years ago or so, they came up with an 'Unleashed by Petco' format, which was a small boutique like chain similar to the now-defunct (in the U.S. anyway) PetValu chain. I think a few of this format are still out there, but the majority closed after a few years. In the last year, they opened a new store in my area (in a less than 13,000 sq foot section of a former grocery store, the rest of which is an Amazon Fresh of all things, so they aren't getting any traffic from there) with its 'Vetco' program. It seems to have a pretty minimal selection, but does have fish, some small animals, pet grooming, etc. so maybe that is new format is working out better, but it seems nowhere near as busy as a nearby Petsmart.
storewanderer
Posts: 14995
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 3 times
Been thanked: 346 times
Contact:
Status: Offline

Re: 300 Petco Stores To Open in Rural Lowe's Stores

Post by storewanderer »

mbz321 wrote: July 22nd, 2023, 6:52 pm
ClownLoach wrote: July 22nd, 2023, 1:32 pm
Petco has the potential to be great. Their problem is that no two stores are alike, or even close to being alike. They change prototypes seemingly monthly. So you never know what you're going to find when you shop a Petco.
This right here. Over the years, they closed a lot of larger dumpier locations that got absolutely killed by close by Petsmart locations. About 10 years ago or so, they came up with an 'Unleashed by Petco' format, which was a small boutique like chain similar to the now-defunct (in the U.S. anyway) PetValu chain. I think a few of this format are still out there, but the majority closed after a few years. In the last year, they opened a new store in my area (in a less than 13,000 sq foot section of a former grocery store, the rest of which is an Amazon Fresh of all things, so they aren't getting any traffic from there) with its 'Vetco' program. It seems to have a pretty minimal selection, but does have fish, some small animals, pet grooming, etc. so maybe that is new format is working out better, but it seems nowhere near as busy as a nearby Petsmart.
Petco's stock is sitting at an all time low so I am not sure what is going on there but the company looks to be drifting in the wrong direction. The CEO keeps getting up on cable TV talking up how they are now a "service" company. Okay, the stock market doesn't seem to be buying the story.

Petsmart units in my area and also around Sacramento are busier than Petco units but there are some pretty dead Petsmarts around Sacramento. Petsmart has also done a couple closures around Sacramento I did not understand, I don't know of any Petco closure activity around Sacramento. The other thing I noticed was during COVID Petco seemed to get busier while business at Petsmart stayed rather slow. Meanwhile as time has passed Petco doesn't seem as busy as it was during COVID but Petsmart is getting busier. Petsmart cut hours during COVID but Petco from what I saw kept its regular hours.

Reno and Carson City have 3 Petcos from the late 90's/early 00's and not one of these stores has seen a cent of capex since opening day. They are dirty outdated stores with faded department signs, beat up equipment, and smell bad. There is a newer Petco in Sparks that is quite a bit smaller; it has narrow aisles, a small mix of items, smells bad, and is generally an unpleasant store.

The Petsmart units in the area are all larger than they need to be but a few of them are very high traffic. One is lower traffic but as of late business seems to be getting better there again.
bryceleinan
Shift Manager
Shift Manager
Posts: 382
Joined: June 1st, 2018, 11:59 am
Has thanked: 2 times
Been thanked: 50 times
Status: Offline

Re: 300 Petco Stores To Open in Rural Lowe's Stores

Post by bryceleinan »

The only two rural Lowe's locations I can think of are in Fernley, NV and in Jackson (Martell), CA. Martell already has a Petco, so I doubt the adjacent Lowe's would get one. Would this concept work in a city like Fernley? Given Fernley already has a Big R and a Walmart, doubtful. I just cannot see this concept working in smaller towns that value practicality in many cases.
storewanderer
Posts: 14995
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 3 times
Been thanked: 346 times
Contact:
Status: Offline

Re: 300 Petco Stores To Open in Rural Lowe's Stores

Post by storewanderer »

bryceleinan wrote: July 23rd, 2023, 8:03 pm The only two rural Lowe's locations I can think of are in Fernley, NV and in Jackson (Martell), CA. Martell already has a Petco, so I doubt the adjacent Lowe's would get one. Would this concept work in a city like Fernley? Given Fernley already has a Big R and a Walmart, doubtful. I just cannot see this concept working in smaller towns that value practicality in many cases.
That is why Petco with its missing mainstream brands is the wrong partner for these rural areas. I thought Petco previously announced it wanted to expand by opening a bunch of rural stores. Maybe that was some other chain. I know Big Lots said it too but that was more recent, if it is Petco I am thinking of they announced this over a year ago.
rwsandiego
Store Manager
Store Manager
Posts: 1279
Joined: April 3rd, 2016, 10:57 pm
Has thanked: 29 times
Been thanked: 58 times
Status: Offline

Re: 300 Petco Stores To Open in Rural Lowe's Stores

Post by rwsandiego »

storewanderer wrote: July 24th, 2023, 12:40 am
bryceleinan wrote: July 23rd, 2023, 8:03 pm The only two rural Lowe's locations I can think of are in Fernley, NV and in Jackson (Martell), CA. Martell already has a Petco, so I doubt the adjacent Lowe's would get one. Would this concept work in a city like Fernley? Given Fernley already has a Big R and a Walmart, doubtful. I just cannot see this concept working in smaller towns that value practicality in many cases.
That is why Petco with its missing mainstream brands is the wrong partner for these rural areas. I thought Petco previously announced it wanted to expand by opening a bunch of rural stores. Maybe that was some other chain. I know Big Lots said it too but that was more recent, if it is Petco I am thinking of they announced this over a year ago.
Petco is actually the right partner for the reason you think it is the wrong partner. Most mainstream brands can be purchased anywhere, including Walmart. The non-mainstream brands can be hard to find in rural areas. Chewy is not always a reliable source of pet food and Amazon's prices are nuts, and not in a good way. This gives residents of rural communities easy access to premium pet food and pet treats.
storewanderer
Posts: 14995
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 3 times
Been thanked: 346 times
Contact:
Status: Offline

Re: 300 Petco Stores To Open in Rural Lowe's Stores

Post by storewanderer »

rwsandiego wrote: July 24th, 2023, 10:34 pm


Petco is actually the right partner for the reason you think it is the wrong partner. Most mainstream brands can be purchased anywhere, including Walmart. The non-mainstream brands can be hard to find in rural areas. Chewy is not always a reliable source of pet food and Amazon's prices are nuts, and not in a good way. This gives residents of rural communities easy access to premium pet food and pet treats.
There just isn't much demand for these types of items in a lot of these rural areas. If there is a demand, there is already a specialty store open in the area handling these products in many such areas.

There are a ton of little independent operators popping up opening 5k square foot strip mall specialty pet food stores, often including a pet wash/dog wash, and often calling in a vaccine provider a couple weekends a month to do fast/low cost vaccines. These tend to go into neighborhoods but if the demand is there they will also go into rural areas where it makes sense. Curiously we have one in this area doing this concept called Pet Station who keeps opening one store after another and despite explosive growth Fernley is a place they've avoided (that is where the single rural Lowe's in the area is).

We will see how it goes. Lowe's is a commodity type store. This missing mainstream brands seems like a mismatch for the rural customer. Now, one way to potentially get customer attention would be to offer the mainstream brands to gain foot traffic, then use staffing or vendor reps of the premium brands to help upsell customers in rural communities who are used to commodity brands to the premium brands; offer free samples, explain the benefits, etc. But a little alcove of a bunch of premium brands only- I don't see generating much foot traffic in rural Lowe's stores. Frankly the local grocery stores would have a better chance selling premium pet food.
BillyGr
Store Manager
Store Manager
Posts: 1635
Joined: October 5th, 2010, 7:33 pm
Been thanked: 64 times
Status: Offline

Re: 300 Petco Stores To Open in Rural Lowe's Stores

Post by BillyGr »

storewanderer wrote: July 24th, 2023, 11:18 pm There just isn't much demand for these types of items in a lot of these rural areas. If there is a demand, there is already a specialty store open in the area handling these products in many such areas.

There are a ton of little independent operators popping up opening 5k square foot strip mall specialty pet food stores, often including a pet wash/dog wash, and often calling in a vaccine provider a couple weekends a month to do fast/low cost vaccines. These tend to go into neighborhoods but if the demand is there they will also go into rural areas where it makes sense. Curiously we have one in this area doing this concept called Pet Station who keeps opening one store after another and despite explosive growth Fernley is a place they've avoided (that is where the single rural Lowe's in the area is).

We will see how it goes. Lowe's is a commodity type store. This missing mainstream brands seems like a mismatch for the rural customer. Now, one way to potentially get customer attention would be to offer the mainstream brands to gain foot traffic, then use staffing or vendor reps of the premium brands to help upsell customers in rural communities who are used to commodity brands to the premium brands; offer free samples, explain the benefits, etc. But a little alcove of a bunch of premium brands only- I don't see generating much foot traffic in rural Lowe's stores. Frankly the local grocery stores would have a better chance selling premium pet food.
To some degree, what you describe in the middle paragraph is similar to those Tractor Supply stores that were mentioned. They do carry some regular brands, but also many of the more premium brands of pet foods, plus they do that with the vet coming in (seems to be Sundays around here) for many basic services.

Of course, they have lots of other stuff besides pet food as well, as of course a Lowe's would.
Post Reply