Petco is planning to go public once again as consumer demand for pets and pet supplies has surged through the course of the pandemic.
“As a result of the COVID-19 pandemic, the industry is experiencing a significant increase in demand that is expected to be a tailwind for years to come,” Petco said in its filing, adding that the share of U.S. households that have pets is expected to grow by 4 percent this year.
Petco has filed for an initial public offering (IPO) twice before, the first time in 1994 and then again in 2002. The company also filed for IPO in 2015 but was then bought by CVC Capital Partners, a private equity firm, and the Canada Pension Plan.
The company is among the key players that have been enjoying rapid growth since the start of the pandemic. Petco’s digital competitor Chewy reportedly saw its net sales grow by 47 percent to $1.7 billion, with its active customers growing by 37.9 percent to 16.6 million. “The new active customers we added in Q1 and Q2 of this year surpassed the total active customers we added across the entirety of 2019,” Chewy’s CEO Sumit Singh said.
Not all players have fared well, however. Last month, Pet Valu announced plans to wind down its U.S. business by shuttering 358 store locations along with its warehouses. The company’s chief restructuring officer Jamie Gould noted that its business was significantly impacted by protracted COVID-19 related restrictions.