Beauty inside

Lowe’s will open Petco mini stores in select stores

Lowe’s is opening Petco stores in some of its stores as part of a pilot program. It plans to open the first in Texas in February.

Source: Petco

Lowe’s will soon be testing a new offering: a Petco store in its stores where customers can buy dog ​​food and cat litter, and even visit a veterinarian, while shopping for paint and other pet supplies. household projects.

The two retailers announced an agreement Thursday to pilot store-to-store locations. The first will open near San Antonio in early February, with 14 additional locations planned in Texas, North Carolina and South Carolina by the end of March.

The companies declined to share financial terms or the length of the deal.

Lowe’s and Petco have been the beneficiaries of the pandemic as Americans have taken on DIY projects and adopted pets while spending more time at home. In the coming months, however, retailers could face a tougher backdrop if consumers feel pressured by rising inflation or decide to spend more of their budget on holidays and nights out instead of shopping. accessories for pets and household projects.

Lowe’s has turned to new merchandise categories to maintain sales growth, while capitalizing on the strength of the real estate market. It added more home decor to its website and stores. She started an initiative to sell and install items that help seniors age in place. And it has started piloting fitness equipment, such as treadmills, rowing machines and dumbbells, in about 20 of its stores. It already carries pet items, such as dog beds and pet-proof mats.

For Petco, the curated version of its stores is a way to introduce itself to more shoppers and potentially entice them to visit its larger stores and website, as it competes with online players such as Chewy.

Petco’s director of merchandising, Nick Konat, said he expects the stores to resonate especially with DIY-inclined millennials. During the pandemic, many in their 20s and 30s have led the way with “nesting” tendencies, buying houses or moving into bigger places, adopting cats or dogs – and in some cases, they viewed pets as a “trial”. before having children, he says.

“He’s a big spender and he really takes care of his pet like his family,” he said. “And they’ve done the same with their homes as well, many of them new owners or new tenants.”

Each store will feature Petco’s logo and products for cats and dogs, including some of its exclusive labels, such as its food brand, WholeHearted, and its fashion brand, Youly, as well as national brands. It will feature more than 700 items that customers can buy online and pick up in-store if they live near a Lowe’s store that is part of the pilot. Some stores will also offer the services of visiting veterinarians and pet professionals, including vaccinations, microchipping, prescription pest prevention and mobile grooming.

The in-store store will vary in size, but the first location will be approximately 1,000 square feet and will be placed at the front of the store, said Bill Boltz, executive vice president of merchandising for Lowe.

The stores will be staffed by a Petco employee, in addition to those from Lowe’s, Konat said.

Other retailers have similar partnerships. Target has struck a deal with Ulta Beauty to open curated boutiques in hundreds of its big-box stores — and has similar stores with Apple and Disney in select locations. Kohl’s has signed an agreement with Sephora to have its beauty salons in store. Kroger will offer Bed Bath & Beyond products in select stores, and Macy’s is rolling out Toys R Us stores.

As of Wednesday’s close, shares of Lowe’s and Petco have both fallen about 12% this year. Lowe’s and Petco shares closed at $228.10 and $17.43 on Wednesday, respectively. Lowe’s shares are up nearly 31% in the past 12 months, bringing its market capitalization to $153.68 billion. Shares of Petco have fallen about 37% in the past 12 months, giving it a market value of $5.27 billion.