Petco, San Diego’s pet health and wellness company, has named an experienced retail executive to lead the company following a monthslong CEO search.
The local pet care retailer named Joel D. Anderson, the former CEO of discount chain Five Below, as its new chief executive Wednesday. Anderson, who has also worked in leadership roles at Walmart and Toys R Us Inc., will take the reins at Petco on July 29.
He replaces Petco’s former CEO, Ron Coughlin, who stepped down from leading the public company in March. Anderson, 59, is now tasked with guiding Petco at a time when sales and profits are down, following a post-pandemic pull back in consumer spending.
“Joel is an inspirational leader and a highly experienced retail CEO,” said Glenn Murphy, executive chairman of Petco’s board of directors in the announcement. “Over the course of his impressive career he has demonstrated the ability to build and lead great teams while creating significant shareholder value. I look forward to working closely with him as he leads Petco’s initiatives to improve operating and financial results.”
Prior to leading Five Below for nearly a decade, Anderson served as president and CEO of Walmart.com where he managed the superstore’s ecommerce business. He also oversaw Walmart’s Northern Plains division of stores as a senior vice president.
A veteran of the retail and consumer goods business, Anderson served in leadership roles over a 14 year span at tableware and gift company Lenox Group and Toys R Us.
Petco will pay him an annual base salary of $1.3 million.
“I am excited to join Petco at a pivotal time as we reposition the business for a stronger future,” Anderson said in a statement. “Petco is the leader in pet health and wellness and I see many opportunities to improve performance.”
Anderson is credited with expanding Five Below’s footprint from 366 to more than 1,500 stores, launching its e-commerce site and improving revenue growth from $500 million to more than $3.5 billion.
Though similar to other brick-and-mortar businesses, Five Below has recently grappled with the financial ramifications of retail theft and penny-pinching shoppers.
Petco has struggled over the past year, especially as interest rates remained high and consumers pulled back on spending. This drop-off follows a boom period for the company during the pandemic as more people adopted pets as companions. Last year, the company laid off 56 workers at its headquarters to reduce costs.
The company employed more than 29,000 people as of Feb. 3.
In Petco’s most recent annual financial filing, it recorded a $1.28 billion net loss for 2023, compared with a net profit of about $90 million the previous year.
During the first fiscal quarter of 2024, Petco reported overall revenue and sales were down slightly year-over-year. Quarterly revenue for Petco services, such as veterinary and grooming, were up, while its pet supplies and companion animal segment were down about 7 percent year-over-year.
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