"Store closures have emerged as an ominous through line across the retail business landscape this year, with decades-old chains trimming their physical footprints, seeking Chapter 11 bankruptcy protection-sometimes twice in one year-and even winding down operations altogether in some cases. Petco Health and Wellness Company is not facing such dramatic dire straits yet, but the beloved pet retailer has been reevaluating the size of its brick-and-mortar fleet as it struggles to lift its bottom line."
"In an earnings release last month, the company said it expected to close 25 locations in 2025, the same number of stores it closed in 2024. The news comes as net sales have declined 2.3% to $1.5 billion for the second quarter while comparable sales fell 1.4%. Sabrina Simmons, Petco's CFO, further clarified in a second-quarter earnings call that 10 locations had already closed year to date as of the end of the second quarter. The closures brought Petco's U.S. store count to 1,388 locations."
Store closures are widespread across retail, with many long-standing chains shrinking physical footprints or seeking bankruptcy protection. Petco is resizing its brick-and-mortar fleet while working to improve profitability. Net sales fell 2.3% to $1.5 billion in Q2, and comparable sales dropped 1.4%. Petco expects to close 25 locations in 2025, matching closures in 2024; 10 locations had closed by the end of Q2, leaving 1,388 U.S. stores. A Petco spokesperson said closures align with the company’s full-year outlook and transformation efforts, including optimizing a fleet of more than 1,500 stores across the U.S., Mexico, and Puerto Rico. At least 13 closures were confirmed in 2025 across 11 states and Washington, D.C.
Read at Fast Company
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