Jan 27, 2022
Lowe’s customers in several states will not only be able to buy products for their household projects in the chain’s stores but can now also shop for dog food and other pet products.
The home improvement chain and Petco Health and Wellness Company are opening store-within-a-store pet products shops as part of a 15-store pilot in the Carolinas and Texas. The first store to feature a Petco shop will open in Alamo Ranch, TX, near San Antonio next month. The shops will cover around 1,100-square-feet and be positioned in the seasonal area at the front of Lowe’s stores. Some of the shops will also offer veterinary services, and the partnership is being extended to Lowe’s site with a designated Petco store, as well.
A CNBC report points out that both chains have been among the retail winners during the pandemic and that the new Petco shops are in line with Lowe’s willingness to expand into new categories as a means of driving its business.
Petco has also demonstrated a willingness to take new paths to attract pet parents as it faces competition from a wide variety of challengers, including Amazon.com, Chewy, PetSmart, Walmart and a range of pet specialty retailers. The company in October launched a new concept, Reddy SoHo, that seeks to grow on the popularity of the private label launched in 2018.
Nick Konat, Petco chief merchandising officer, sees his company’s Millennial customers and those shopping at Lowe’s having a lot in common.
“They’re a high-spend customer and they really take care of their pet like their family,” he told CNBC. “And they’ve also been doing the same with their homes, with a lot of them being new homeowners or new renters.”
Lowe’s decision to enter into this first-of-a-kind partnership with Petco seems to be founded on a recent survey it commissioned. The Herald Sun reports that 58 percent of those surveyed said they would be more likely to shop in a home improvement store if it also offered pet products for sale. Ninety percent of pet owners surveyed said they want their pets to be comfortable in their homes.
DISCUSSION QUESTIONS: Do you expect the Lowe’s/Petco pilot to prove successful and to be scaled to more locations? How do you think this pilot will affect the thinking of Lowe’s and Petco’s primary competitors?
“Lowe’s is working to position themselves closer to the center of consumers’ daily needs instead of relying on the periodic needs of home improvements.”