Lowe’s and Petco Health & Wellness announced on Thursday that they will be introducing Petco stores within nearly 300 Lowe’s locations across the country by the end of this year. The partnership, which was first announced in January 2022, has already been piloted in 15 Lowe’s stores.
These Petco stores will offer a range of pet supplies, including toys, food, flea and tick solutions, and select locations will even provide veterinary services once a month. The initial pilot program proved successful, resonating with existing Lowe’s customers and attracting new ones.
Bill Boltz, Lowe’s executive vice president of merchandising, expressed enthusiasm for the partnership, stating, “Partnering with top brands that our customers know and trust, like Petco, allows Lowe’s to continue elevating and localizing our curated assortment to ensure we have the right products in the right markets.”
Most of the Petco stores will be located in rural areas as part of Lowe’s broader strategy to tailor its offerings to rural communities. These stores will include feed, outdoor products, an expanded trailer selection, and farm supplies.
This store-within-store approach has become increasingly popular among retailers seeking to attract customers back to physical locations after the pandemic. Target is another example of a retailer that has successfully embraced partnerships with brands like Starbucks and Levi Strauss. Target is now expanding its partnership with Ulta Beauty to meet the growing demand for beauty and skincare products. Kohl’s has also announced a similar alliance with Sephora.
Despite Thursday’s exciting announcement, both Petco and Lowe’s stock experienced some fluctuations, suggesting that investors remain skeptical about the impact of this strategy on sales. Petco stock saw a slight increase of 0.3% in early morning trading, while Lowe’s stock dipped by 0.6%.