LOW - Lowe's and Petco (WOOF) expand their pet supply partnership

2023-07-31 06:52:06 ET

Lowe's Companies ( NYSE: LOW ) and Petco Health and Wellness Company ( WOOF ) are looking at cash in on the explosion of household pet ownership in the U.S., with an expansion of their pilot store-in-store program that offers pet products at home improvement stores. The two retailers plan to expand the concept to nearly 300 Lowe’s locations throughout the United States by the end of 2023.

Focusing on rural communities in the U.S., the partnership was started after the pandemic in an attempt to give pet owners a one-stop shopping option. The concept was piloted in a Lowe's store in Alamo Ranch, Texas, and was later expanded to other Lowe’s (LOW( locations throughout Texas, North Carolina, and South Carolina at the end of March 2022.

"Our initial pilot program with Petco resonated with our existing, loyal shoppers and introduced new customers to Lowe's," noted Lowe's merchandising exec Bill Boltz. "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," he added.

The Lowe's Petco store-in-stores will carry a range of products, from nutrition and supplies to flea and tick solutions. Products include Petco private brands: EveryYay, Leaps & Bounds, So Phresh and WholeHearted; as well as national brands, including: Advantage II Cat, BARK Toys, Blue Buffalo, ChuckIt, Frontline, K9 Advantix, Purina One and Seresto. Petco's Vetco Clinics, offering vaccinations, microchipping, and preventative medicine, will also be available once a month at 75 Lowe's stores and will be staffed by a licensed veterinarian.

Underpinning the potential upside of the LOW-WOOF partnership, it is estimated that 90.5M families or 70% of all U.S. households now own a pet. Millennials make up the largest percentage of current pet owners at 33%, followed by Gen X at 25% and baby boomers at 24%.

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