Lowe's and Petco Strengthen Retail Partnership Through Store-in-Store Expansion

lowes petco store

Lowe’s and Petco are deepening their partnership, building out existing shop-in-shop models to include almost 300 locations across the U.S. 

Petco’s product assortment will be available in dedicated shop-in-shops within Lowe’s stores by the end of the year. As part of the initiative, Petco's Vetco Clinics will now be accessible at 75 Lowe's stores on a monthly basis, providing services such as vaccinations, microchipping, and preventative medicine, all overseen by a licensed veterinarian.

The two retailers first teamed up in early 2022,  starting with a pilot store at Lowe's Alamo Ranch in Texas in early February. The Lowe’s + Petco partnership has grown to include 15 more stores, with a concentration on extending services to more rural and remote areas of the country. 

Extension into more remote communities fits more broadly with Lowe’s recent “perpetual productivity improvement plan,” which focuses on driving sustained profit growth while lowering operational costs, particularly within the rural segment.

In a
recent earnings call, Bill Boltz, Lowe’s EVP of merchandising gave shape to these ideas, outlining how the retailer’s “rural store footprint and long-standing relationships in these communities,” should be viewed as a “natural opportunity for our business and one that will simplify the shopping experience for these very valuable customers.”

“Our initial pilot program with Petco resonated with our existing, loyal shoppers and introduced new customers to Lowe's,” Boltz said of this latest expansion. "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. By expanding our store-in-store footprint, we're offering more tailored products and services to meet the unique needs of our customers in rural and remote areas, streamlining the shopping experience.”

Petco Thinks Outside the Box on Expansion Strategies

In recent years, Petco has made substantial investments to bolster its market presence, venturing into various store-in-store partnerships with a view to establishing comprehensive, full-service pet centers.

Last summer, the retailer homed in on its nutrition focus with the Neighborhood Farm & Pet Supply pet care centers — a one-stop-shop for health services for farm animals like horses, cows, pigs, sheep, goats, as well as household pets.

In March 2022, the retailer also rolled out a
concept store in San Marcos, CA. Designed through data, the concept store was intended to be a physical manifestation of the retailer’s omnichannel customer experience.

Petco’s store-in-store expansion plans are not limited to Lowe’s, either – earlier this year, the retailer expanded its partnership with Canadian Tire, bringing its product assortment to dedicated shop-in-shops across 450 Canadian Tire stores (90% of the company’s total locations) in 2023.

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