Petco Health and Wellness Company, Inc. has tapped retail industry veteran Joel D. Anderson to serve as CEO, effective July 29, 2024. In addition, Anderson has been elected to serve on the company’s board of directors.
“I am excited to join Petco at a pivotal time as we reposition the business for a stronger future,” Anderson said in a press release.
Petco ranks No. 86 in Digital Commerce 360’s Top 1000 Database of the largest North American e-retailers by online sales. It is classified as a Specialty retailer in the database. Digital Commerce 360 projects Petco’s total web sales in 2024 will reach $1.25 billion.
Pet web sales by year
Petco’s selection of Anderson as new CEO
Joel D. Anderson, incoming CEO at Petco | Image credit: Petco
“Over the course of his impressive career he has demonstrated the ability to build and lead great teams while creating significant shareholder value,” said Glenn Murphy, executive chairman of Petco’s board of directors. “I look forward to working closely with him as he leads Petco’s initiatives to improve operating and financial results.”
Petco’s first-quarter sales, reported in May, fell 1.7% year over year. The company lost $45 million, compared with a $1.9 million loss during the comparable period in 2023. In response to the losses, the company is implementing a new store operating model to increase productivity. The earnings report highlighted a review of the pricing and assortment strategy underway to improve inventory management. Petco aims for $150 in cost savings by the end of fiscal 2025.
Anderson comes to Petco after leading a turnaround at value retailer Five Below. That followed seven years at Walmart.com, where he became CEO. He will replace Petco’s interim CEO, R. Michael Mohan, as Mohan leaves the role on July 29. Mohan will then chair a new committee for Petco’s board, focusing on value creation.
Mohan took over the interim executive role after former Petco CEO Ron Coughlin resigned in March.
“On behalf of the Board of Directors, I extend our deepest gratitude to Mike for his dedication and leadership,” Murphy stated. “He has made a meaningful impact as our interim CEO over the past few months, effectively stabilizing our operations and setting us on the path for continued improvements in performance.”
Anderson’s retail leadership experience
“Joel’s breadth of experience across stores and ecommerce and the interplay between the two makes him a strong leader for Petco,” Michele Roney, executive president at Mars United Commerce, a global retail and trend consulting company, told Digital Commerce 360. “His proven ability to rapidly scale revenues in complex and niche environments will help the retailer navigate an ever-changing consumer environment.”
Petco has more than 1,500 physical stores in the United States. Still, it has to compete against online giants like Amazon and Walmart.com. In that context, Anderson brings experience in both, Roney explained. She said she believes Anderson can also use Petco’s niche in the pet market to differentiate itself from others.
“The benefits of being a niche retailer in today’s market is the space and permission to be different in what has become a relatively commoditized shopping experience — especially concerning the pet category,” Roney noted, adding that Anderson’s experience should allow him to navigate Petco’s challenges.
“Joel brings a renewed focus and outside perspective on the uniqueness of Petco and can work to improve the relationship between the retailer, its supplier base, and their customers,” she said.
Roney says Petco’s emphasis on brick-and-mortar stores gives it plenty of room to grow. One path may include focusing on a more robust online presence.
“With more consumers shopping online and new revenue models — like retail media — supplementing core retail activities, retail continues to evolve in unforeseen ways,” Roney said.
She expects the challenge for Anderson will be not to get a “fragmented focus” with the physical stores and growing its online business, as they are different entities. One way she sees him having an impact may be through bringing in his own talent pool to help Petco focus on growing its online footprint while freshening up its physical stores.
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