Dive Brief:
- After announcing plans for a new concept back in March, Petco will open its first rural store on Friday.
- The first Neighborhood Farm & Pet Supply is located in Floresville, Texas, and will serve as a “one-stop shop” for consumers buying products for pets and farm animals, according to a company press release.
- The pet retailer expects to open a handful of its rural store concepts throughout 2022.
Dive Insight:
To attract a new set of customers, Petco is moving ahead with its plans to add store concepts after initially announcing plans at its investor day earlier this year.
Through the rural store concept, the pet retailer is positioning itself against the likes of Tractor Supply and regional category specialists. The store, which is targeted toward consumers who need farm and livestock products, will also feature self-wash stations, mobile vaccinations and grooming services, as well as fulfillment options like buy online, pick up in store and same-day delivery.
According to data from Synergos Technologies cited by Petco, 14% of the U.S. population lives within rural communities, making the total addressable market in those locations about $7 billion.
"These are rapidly-growing markets where pet parents are looking for an experienced, pet-dedicated partner like Petco to help them care for the health and wellness of their animals," Petco CEO Ron Coughlin said in a statement. "This is an exciting opportunity for us to serve more pets by dramatically expanding local access to healthy pet products and services."
Petco in recent months has looked beyond its traditional pet centers as it looks to broaden its reach. In January, the retailer announced a partnership with Lowe’s to open shop-in-shop concepts within the home improvement retailer’s stores. And last October Petco opened a flagship dedicated to its Reddy private label in New York’s SoHo neighborhood, situated down the street from high-end brands like Marc Jacobs and Ted Baker.
