Petco to shutter about 25 stores this year as it trims its fleet

Petco plans to shutter about 25 stores in the United States, Puerto Rico and Mexico this year as it accelerates a company-wide effort to optimize its roughly 1,500-store network. The retailer has already closed 13 locations across 11 states, including Massachusetts, Illinois and California, as demand shifts and competition intensifies online. Petco reported a 2.3% decline in sales in the most recent quarter, but said it is raising its full-year earnings outlook while pursuing a broader program to improve profitability and store productivity.

Executives describe the closures as part of a broader transformation to strengthen the operating model and drive sustainable, long-term growth. The move comes as the pet category faces pressure from e-commerce rivals such as Chewy and Amazon, and as rising costs, including tariffs, squeeze margins. The chain benefited from pandemic-era pet adoptions and expanded services like training and wellness offerings, but shoppers have since pulled back and competition has intensified.

Petco is not alone in shuttering stores amid a difficult retail climate. Analysts have projected about 15,000 store closures in 2025, more than double the roughly 7,000 that shut down last year. The broader environment includes high-profile moves such as JCPenney selling 119 stores to a private equity firm, Torrid announcing plans to shut 180 locations, and Claire’s filing for Chapter 11 protection. Forever 21 has continued online-only operations following bankruptcy, and Party City and Big Lots have closed many locations in recent months. Macy’s is winding down about 150 underperforming stores, including a number this year, while Rite Aid has shuttered more than 1,200 stores since its second bankruptcy filing in two years. Kroger began closing about 60 stores earlier this year, and Safeway announced 12 store closures, though the impact on workers remains unclear. The ongoing consolidation and store rationalization illustrate how traditional retailers are reconfiguring footprints as consumer habits shift toward online shopping and value-based buying.