Petco CEO Ron Coughlin: Pets are furry annuities in spending boom
Petco CEO and Chairman Ron Coughlin on the financial aspects of pets.
Petco CEO Ron Coughlin argued that pandemic pets are the "furry annuity" and the "pet version" of the baby boom post World War II is unfolding as 11 million pets were brought into homes last year.
"They [pets] need to be groomed, they're going to need to be trained, they're going to need veterinary [care], they're going to need food for the next decade," he told FOX Business’ Maria Bartiromo on "Mornings with Maria."
Despite the virus-induced economic hardships over the past months, pet owners collectively doled out a record-breaking amount of money for their animal companions. The American Pet Products Association announced in March that the industry generated $103.6 billion in annual sales, the industry's highest figure to date.
AMERICANS SPENT A RECORD BREAKING AMOUNT ON THEIR PETS DURING THE PANDEMIC
In the second quarter, Petco reported revenue of $1.4 billion, up 19 percent from a year ago, driven by comp sales growth of 20 percent.
|WOOF||PETCO HEALTH AND WELLNESS COMPANY INC.||21.85||+0.19||+0.88%|
Coughlin said Petco is "well-positioned" for growth and the pet category as a whole is projected to grow 8 percent.
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"We’re the only company that can really help pet parents on a holistic basis," he said adding that, "50 percent of pet parents say that they want a one-stop-shop and we have vet… grooming, training… [and] great food and we bring it together on both e-commerce and brick and mortar."
Coughlin also said a "return to brick and mortar in this environment" resulted in 1 million new customers last quarter.
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