Dive Brief:
- Petco is improving personalization and cutting friction in pursuit of a more connected omnichannel experience between its stores and services, CEO Joel Anderson said on a Q1 2026 earnings call Wednesday.
- The pet retailer's work to improve the online checkout process led to improved digital traffic, according to Anderson. Petco sees opportunities to increase site speed and optimize shopping windows as well.
- In stores, associates can now see customer data such as their food purchase history, Anderson said. “This allows our partners to have informed, personalized conversations that drive cross-category sales and importantly, can help enhance customer satisfaction and loyalty over time.”
Dive Insight:
Petco’s efforts to build an integrated operation that creates a cohesive experience between its store, online and loyalty capabilities is showing signs of paying off.
The CX improvements are part of Petco’s ongoing turnaround strategy, which helped the retailer return to growth this quarter. Comparable sales were up 0.7% year over year in the first quarter of 2026, according to an earnings report. Net sales rose 0.2% year over year to $1.5 billion.
One important part of the strategy is better integration between Petco’s retail and services, according to Anderson. Opportunities for better customer service arise when a groomer notices a pet has sensitive skin and can recommend products based on that pet’s needs.
“Giving them access to that is just one great example of certainly a cross-selling opportunity for us, but a way to be really helpful for our customer and the health of their pet,” Anderson said.
Petco is ready to relaunch its Petco Perks loyalty program later this quarter, and it is designed as another link to connect the two sides of the business, according to Anderson. The latest Petco Perks pilot found that simplicity and friction-busting had a major impact on its success.
“Petco Perks uniquely leverages our entire ecosystem, spanning both merchandise and services,” Anderson said. “The program will be heavily focused on personalized offers based on factors like shopping frequency and customer lifetime value, a strategy that successfully drove higher sales and stickiness during our pilot.”
While the company is pleased with its recent results and upcoming changes, there is still plenty of work ahead, according to Anderson.
“We have an immense opportunity to deliver product newness, capitalize on cross-channel shopping, grow our differentiated services business and provide the most personalized experience possible to the passion explorer and their pets,” Anderson said.
