Petco Health and Wellness (NASDAQ: WOOF) CEO Ron Coughlin said the company is destined to grow through the ongoing global pandemic and subsequent pet boom. The company officially started trading Thursday under the ticker WOOF. It priced its initial public offering at USD18 on Wednesday night to raise approximately USD816.5 Million, higher than its target range.
According to Coughlin, Petco’s client base has increased amid the pandemic as people adopt new pets. He said that 3.3 million pets were united with families in 2020 and he anticipates the pet boom to carry on well into 2021.
“People are at home, they’re a little depressed and they want a bundle of joy in their life,” he said. “So we’re going to help feed those pets, we’re going to help train those pets, groom those pets and vaccinate those pets. I think it’s actually good for America and our souls and it’s good for Petco.”
The IPO values Petco at approximately USD4 Billion, confirming that investors’ interest in new stocks remains strong.
According to Coughlin, Petco has developed resources that its competitors have not. The retailer has managed to scale its vet business from 15 to 105 clinics during the last 18 months. Furthermore, approximately 70% of the pet products it sells, such as private label food brands, are exclusive to it.
Petco has proceeded to integrate more digital options during the last year and a half, which involves in-store and curbside pickup in regards to online orders. Additionally, same-day delivery is now responsible for 30% of its e-commerce orders, according to Coughlin.
“The more technology we’ve laid down, the faster our digital business has grown,” he said.