Petco CEO: Pet market is ‘recession-proof’
Petco the first retailer to receive the American Humane Certified Seal of Approval
Petco Chairman and CEO Ron Coughlin says whether the economy is up or down, pet parents maintain the ‘highest value’ for their care.
Not only is pet health and wellness company Petco seeing double-digit sales growth for its seventh consecutive quarter, but it’s also become the first retailer to receive the American Humane Certified Seal of Approval.
In an exclusive interview on "Mornings with Maria" Thursday, Petco CEO and Chairman Ron Coughlin reacted to the news, sharing the company’s excitement.
"We're just thrilled with getting that certification for our animal care because at the end of the day, what really matters is, are you taking great care of the pets?" Coughlin told FOX Business’ Maria Bartiromo. "If you're taking great care of pets, business will follow."
"Whether economies are up or down, the pet market tends to be pretty recession-proof," the CEO added.
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According to Coughlin, Petco has the "highest value" customers, meaning they’re least likely to change pet food or care based on factors like price or availability.
Petco store logo (Don & Melinda Crawford/Education Images/Universal Images Group via Getty Images / Getty Images)
"You talk to most pet parents and they say, 'There's no way I can change my food,' particularly cat parents because cats are particularly finicky," he explained. "My dog Yummy, there's no way I'm going to take him off of his fish and sweet potatoes."
To "keep moving the business forward," Coughlin said the company is focused on growth within its e-commerce, rural and veterinarian sectors – all part of a $40 billion incremental addressable market.
"Whether that is the Rx business that we grew 66% last quarter, whether that's the insurance business, or we announced the scale pilot in rural markets, rural markets are $7 billion," Coughlin noted. "And as you know, people are going from the cities to these rural markets, and they're underserved."
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Petco Chairman and CEO Ron Coughlin says the company is 'thrilled' to receive recognition for its animal care.
Now that Petco is seeing a post-pandemic return to brick and mortar, the company’s also pushing one of the "fastest vet build-outs in history," Coughlin said.
"What's unique about our model is when we put in a vet, we also put in a JustFoodForDogs pantry, which is a high-end supply store, and we see a significant lift," the CEO said. "So we have in our model every year doing 70 of these [veterinary centers], and it really is a lift to our overall long-term financial model."