Petco Expands PupBox Subscription Service
Petco Health and Wellness Co. is expanding its PupBox subscription service to include dogs of all ages, the company announced Wednesday. Petco will now offer a PupBox subscription for puppies ages newborn to six months, puppies from seven months to 18 months old, dogs from 19 months to six years, and senior pups from seven years to 11 years old. The subscription boxes offer items for different stages of a dog’s life, from training guides to treats and educational materials and tips. Boxes also come with promotions for other Petco services and items, including veterinary care and grooming.
Total Retail's Take: With adoptions of pets soaring during the pandemic, retailers in the category, including Petco and Chewy.com, have seen positive gains. In fact, Petco recently reported second-quarter earnings that beat expectations and raised its full-year guidance in August. Furthermore, the retailer is targeting the pet health market as a future growth opportunity. Petco CEO Ron Coughlin noted that pet health is a $50 billion addressable market that the company is tackling through vet services, prescription food, which can only be sold in places where a vet is on the premises, pet insurance and more. The company is wisely diversifying its revenue streams, including offering services only available in its stores, as a means to take market share from hard-charging online-only retailer Chewy.com.