Petco has told Newsweek that it has “been accelerating initiatives to strengthen our operating model” after it announced plans to shutter over two dozen underperforming stores in 2025. The closures are part of the company’s efforts to streamline operations and boost profitability.
In its second-quarter results released last month, the pet supply retailer—which currently operates around 1,400 stores in the U.S.—said it would be closing 25 locations in the U.S. this year, the same number as it closed in 2024.
Why It Matters
Amid financial pressures, Petco, like many other retailers, is looking to eliminate underperforming locations from its U.S. footprint. As well as struggling sales, the company has warned that President Donald Trump’s tariffs will weigh on its success in 2025, and has said that these effects will continue to mount in the second half of the year.
What To Know
Earlier this week, business media outlet Fast Company compiled a list of 13 Petco locations that have closed in the U.S. so far as part of this efficiency push. This was based on local news reports, review websites and the company’s own store locator. The closures below were confirmed by Petco.
125 W Lincoln Hwy, Exton, Pennsylvania, 19341
1725 Twin Creek Pl, Walla Walla, Washington, 99362
3100 14th St Ste 124, Washington, D.C., 20010
16835 E Shea Blvd Ste 105, Fountain Hills, Arizona 85268
8775 Tualatin Sherwood Rd, Tualatin, Oregon 97062
1006 Keller Pkwy Ste 103, Keller, Texas 76248
300 Ryders Ln, Milltown, New Jersey 08850
210 Fortune Blvd, Milford, Massachusetts, 01757
239 Newburyport Turnpike, Topsfield, Massachusetts, 01983
32074 Gratiot Ave, Roseville, Michigan, 48066
4840 N Pulaski Rd Ste 100, Chicago, Illinois, 60630
2842 NW 63rd St, Oklahoma City, Oklahoma, 73116
444 N Santa Cruz Ave Los Gatos, California, 95030
When approached by Newsweek, Petco declined to comment on the store closures directly, but said that it has “been accelerating initiatives to strengthen our operating model” in line with its “broader transformation to drive sustainable, profitable growth over the long term.”
Petco reported second quarter net sales of $1.5 billion, down 2.3 percent year-over-year in line with its expectations. Comparable sales also dropped 1.4 percent, though core earnings improved to $43.0 million from $40.6 million.
What People Are Saying
Petco’s CEO Joel Anderson said last month: “As we look ahead to the remainder of this year, we will continue to execute on our objectives while also leaning into select targeted investments that we believe will help set the stage for a return to sustainable profitable growth.”
Chief Financial Officer Sabrina Simmons, in an earnings call following the release of it second-quarter results, said: “It’s important to note that the impacts of tariffs will become sequentially more meaningful as we move through the back half [of 2025]. Additionally, the significant progress we’ve made during the first half against strengthening our economic model and improving our earnings profile provides us the flexibility to selectively invest behind the business where it makes sense as part of our ongoing efforts to set the stage for phase three: A return to profitable sales growth.”
What Happens Next?
Following on from its second-quarter results, the company maintained its full-year sales growth outlook of a low single-digit year-over-year decline. However, it raised its earnings guidance, now forecasting between $385 million to $395 million in earnings before interest, taxes, depreciation and Amortization (EBITDA), up from the $375 million to $390 million range projected in June.