It’s not every day you see a home goods giant and a pet retailer partner up to sell products and feed each other’s bottom line.
Yet that’s exactly what’s happening with Lowe's (LOW) -) and Petco (WOOF) -) which have expanded a 15-store test program to operate together in 300 existing Lowe's stores, the vast majority of those stores in underserved rural communities.
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Lowe's and Petco originally formed a strategic partnership in 2022, when a Lowe’s store offering Petco products and clinical services opened up in Alamo Ranch, Tx. Since then, the two fledgling partners have opened co-existing stores in North Caroline, South Carolina, and Texas.
The move coincides with a strategic move by Petco to expand its visibility in rural locations. It recently rolled out a new rural outlet called Neighborhood Farm & Pet Supply which caters to consumers who have a tough time finding pet products and services – even for farm animals – that urban and suburban shoppers have no problem finding.
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The dual initiatives seemed to resonate with the C-suite in both companies, as the partnership is set to expand throughout 2023.
"Our initial pilot program with Petco resonated with our existing, loyal shoppers and introduced new customers to Lowe's," said Bill Boltz, Lowe's executive vice president of merchandising in a July 20 statement. "Partnering with top brands that our customers know and trust, like Petco, allows Lowe's to continue elevating and localizing our curated assortment to ensure we have the right products in the right markets.”
Now, some of those “right” products include Petco private-label products like EveryYay, Leaps & Bounds, So Phresh, and WholeHearted. The partnership will also include national brands like Advantage II Cat, BARK Toys, Blue Buffalo, ChuckIt, Frontline, K9 Advantix, Purina One, and Seresto.
Additionally, 75 Lowes locations will host Petco's Vetco Clinics, offering vaccinations, microchipping, and preventative medicine once per month, and with a professional veterinarian onsite.
How many customers will Lowes add to its current base of 17 million shopper transactions weekly? That’s tough to say.
What’s working in the partnership's favor is that 70% of U.S. households now own a pet, which means those pet owners can hit Lowes for a pair of pliers and some Puppy Chow, all under one roof.
