Petco in the United States turned a profit after acquiring 1.2 million new customers in the first quarter

Driven by the COVID-19 pandemic and the adoption of pets by people abroad, Petco has achieved good results. Relevant data show that in the first quarter of 2021, Petco's revenue increased by 27% to US$1.4 billion, better than expected , while digital revenue increased by 21% this quarter .

In addition, Petco's same-store sales increased 28% over the same period last year , and it also gained 1.2 million net new customers in the quarter , the highest level in many years. Petco said that the acceleration of the category and the strengthening of our customer base give us the confidence to raise our full-year guidance , especially the continued growth of online sales and the 63% growth in service and veterinary revenue .

Pet adoptions have surged during the coronavirus pandemic as consumers spend more time at home, providing them with an opportunity to take on new responsibilities associated with pet ownership. But unlike other pandemic trends, Petco doesn't expect this growth to disappear , primarily due to the continued rise in pet costs, and pet adoptions will boost sales over the long term .

Spending by millennial and Gen Z pet owners increased the company's revenue compared to pet owners of other age groups . Looking back at 2020, millennials and Gen Z spent more on their pets, and these young pet owners spent money on higher-priced natural pet food and luxury pet clothing, including products such as leather collars and puffer vests.

Previously , Petco had a partnership with DoorDash to provide customers with same-day delivery of online orders. During the chain's earnings call, Coughlin said the partnership gave Petco a competitive advantage over pure online competitors in the category because the cost of fulfilling orders directly from its stores is lower than shipping costs.

Chairman and CEO Ron Coughlin said his company entered 2021 with even stronger momentum and achieved record quarterly sales in the first quarter thanks to strong execution and a unique digital model as well as the unique model of pet care centers.

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Petco

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