Petco, a prominent pet care retailer, has been facing staffing issues impacting the quality of service in some of its 1,500 U.S. stores. These concerns emerged after the company went public in January 2021. Staff reductions have led to an inadequate level of care for the animals and less attention to the cleanliness of the facilities.
Stephanie Jordan, a former employee, noticed a significant change in store operations after Petco went public. Employees were being diverted from their usual tasks to handle the cash register and assist customers, resulting in fewer staff members available to care for the animals. This has led to lapses such as irregular feeding of fish and unsanitary cages. Customers have reported issues like the presence of deceased mice and frogs, causing distress.
Some of Petco’s U.S. stores have experienced a reduction in staffing levels by up to one-third over the past few years, with some stores operating with less than 300 working hours per week. It is now common for only two people to manage stores that house a wide variety of live animals. This understaffing has resulted in longer wait times at the cash register and compromised animal care, raising concerns.
This staffing challenge poses a threat to Petco’s strategy, which heavily relies on attracting customers to its physical stores. CEO Ron Coughlin has emphasized in-person services like grooming, training, and veterinary care to differentiate from online giants like Chewy and Amazon. Despite this, Petco recently announced a lower profit projection due to reduced spending on non-essential pet items.
While Petco emphasizes its advantage of providing a personal in-store experience for pet owners, staffing levels seem to contradict this claim. The company has invested millions in employee compensation and benefits but hasn’t disclosed the extent of national staff reductions.
“Petco’s purpose is to improve the lives of pets, pet parents, and our Petco partners,” said a Petco spokesperson in response to the concerns. The company maintains that its animal care standards meet the criteria set by American Humane, the world’s largest certifier of animal welfare.
Petco’s in-store strategy succeeds when customers visit for vet appointments, receive personalized recommendations, and can conveniently purchase recommended products. This approach has seen an increase in foot traffic and sales since Coughlin’s appointment in 2018. The company continues to innovate its offerings, like the introduction of paid membership programs, to boost customer engagement and spending.