Petco shifts focus to aggressive growth strategy amid successful turnaround

Petco is stepping up its expansion efforts following a year of restructuring, with new CEO Joel Anderson emphasising a shift towards wider appeal and differentiated offerings to drive sustained top-line growth.

Petco is leaning harder into growth after a year of restructuring, with chief executive Joel Anderson telling the Goldman Sachs consumer conference that the company’s turnaround has moved beyond pure cost discipline. He said phase two remains in place, but the focus is now shifting towards the “Reach for the Sky” push to widen its appeal and sharpen what makes the retailer different.

The strategy is beginning to show up in the numbers. According to Petco’s second-quarter update on 2 September, it posted a second straight quarter of positive comparable sales, helped by consumables and services, while also continuing to pay down debt with a further $75 million voluntary prepayment. Management has outlined four priorities for 2026: stronger product, services at scale, better store execution and a more integrated omni-channel offer. Petco has also highlighted fresh food as a growth lever, saying those shoppers visit more often and spend materially more, while owned brands account for about a fifth of sales and carry higher margins. Anderson, appointed chief executive in July 2024 after senior retail roles at Five Below and Walmart.com, is now trying to turn that base into sustained top-line growth.