Petco ($WOOF) on Thursday went public for the third time in its 56-year history following a banner year for the pet care and supply industry, which benefited from remote-working pet owners spending more time than ever with their animal companions.  

"It was always the plan to go public. The question was when not if," CEO Ron Coughlin told Cheddar. "The market … is strong and it's going to be strong well into the future, so it was a great time to do it." 

The company debuted on the Nasdaq at $26 per share and hit $29 at the close, up 63 percent from the initial offering. Coughlin said Petco will cut its debt in half with this transaction.

This return to public markets places Petco in direct competition with Chewy, the online pet product retailer owned by industry giant PetSmart, which had a successful IPO in 2019 

"We're playing a different hand," he said. "Our hand is being the pet parent's partner for the health and wellness of their pet."

Coughlin touted the company's suite of veterinary services as well as its training and grooming offerings, which "neither the online players or the mass players" have.

This emphasis on the health and wellness of pets was also evident in Petco's announcement last year to no longer sell shock collars at its stores. 

The executive also highlighted the company's focus on selling higher-quality pet food. 

"Actually all of the growth of the pet food category is going to come from premium and super-premium, where we have particular strength." 

Petco, which has 1,400 brick-and-mortar locations across the U.S., is banking on the continued customer value in maintaining a physical presence. 

"Our pet care centers are the salons for pets. They're the hospital for pets. In some ways, they're the schools for pets with our training," he said. 

The company's in-house research showed that 39 percent of customers want an omnichannel experience: both online and retail offerings.  

"I know this whole theory about retail locations being albatrosses, but for us, they are absolutely, absolutely a competitive advantage," Coughlin said.

Share:
More In Business
Starbucks’ Change Flushes Out a Debate Over Public Restroom Access
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
Trump Highlights Partnership Investing $500 Billion in AI
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Load More