Petco loses millions due to loyalty program

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Petco loses millions due to loyalty program
 
Published Wednesday, September 9, 2026 11:00 am
by Bryan Wassel

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"Petco’s relaunch of the Petco Perks loyalty program weighed on net sales after “customer point redemption volumes far exceeded our initial projections,” CEO Joel Anderson said on a Q2 2026 earnings call Wednesday. Prior to the launch of the updated program, sales were tracking above Petco’s second quarter outlook of 0.3% growth, CFO Sabrina Simmons said. The retailer ultimately reported that its sales remained essentially flat year over year due to “mid-single-digit millions of impact” from Petco Perks."

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Petco loses millions due to loyalty program

Petco's relaunch of the Petco Perks loyalty program weighed on net sales after customer point redemption volumes far exceeded initial projections, with a mid-single-digit millions of impact on sales. The redesigned program, intended to remove friction and boost customer engagement, achieved success in driving redemptions—perhaps too much. Members earning 10 points per dollar on most products and 30 points per dollar on private label brands redeemed rewards at volumes that dragged second quarter sales, which otherwise would have tracked above outlook. The pet retailer quickly implemented guardrails to control redemption velocity and plans to refocus on personalization capabilities for long-term growth. Despite the early challenges, Petco reported its second consecutive quarter of same-store sales growth, up 0.6% year-over-year in Q2 2026, improving from four quarters of comparable declines in 2025.

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