Petco to Close 25 Stores Nationwide Amid Profitability Push
Petco has announced plans to close 25 underperforming stores across the United States in 2025, as part of its strategy to enhance operational efficiency and boost profitability. The retailer, which currently operates approximately 1,400 locations nationwide, is taking these steps amid ongoing financial pressures that have impacted sales.
The closures, which mirror the number of stores shut down in 2024, follow Petco’s second-quarter results that revealed a 2.3 percent year-over-year decline in net sales, amounting to $1.5 billion. Comparable sales dropped by 1.4 percent, although the company’s core earnings improved slightly, rising from $40.6 million to $43.0 million.
Details of the Closures
According to Petco, the list of locations scheduled for closure reflects its commitment to streamlining operations. A recent report by Fast Company identified 13 of the impacted stores, compiling the information from local news sources, review websites, and Petco’s store locator. The confirmed closures include:
– 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
While Petco refrained from commenting on the individual store closures, the company emphasized that it is accelerating initiatives to strengthen its operating model as part of a broader transformation aimed at achieving sustainable, profitable growth.
Future Outlook and Leadership Statements
Petco’s CEO, Joel Anderson, expressed confidence in the company’s strategic direction during an earnings call. He stated, “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 noted that the impacts of tariffs imposed during the Trump administration will increasingly affect the company’s performance, particularly in the latter half of 2025. She highlighted the progress made in the first half of the year to strengthen the economic model, which allows for selective investments to support growth.
Following the announcement of its second-quarter results, Petco maintained its full-year sales outlook, anticipating a low single-digit decline year-over-year. However, the company has raised its earnings guidance, now projecting earnings before interest, taxes, depreciation, and amortization (EBITDA) between $385 million and $395 million, up from the previous estimate of $375 million to $390 million.
Petco’s strategic adjustments reflect a broader trend within the retail industry, where companies are increasingly focusing on efficiency in response to shifting consumer demands and economic challenges. As the company navigates these changes, its ability to adapt will be crucial in maintaining its competitive edge in the pet supply market.
