Petco
Baskersfield, CA
Petco Animal Supplies, Inc., or simply Petco, is an American privately held pet retailer in the United States, with corporate offices in San Diego and San Antonio. Petco sells pet products and services, as well as certain types of live animals. Petco sells and holds fish, reptiles, small birds, hamsters, guinea pigs, and mice for adoption. Pet services include grooming and dog training. The company also owns the naming rights to the Petco Park baseball stadium, which is home of the San Diego Padres.
As of 2017, the company operates more than 1,500 locations across the United States, Mexico, and Puerto Rico, including more than 85 Unleashed by Petco locations, which is a smaller-format neighborhood brand-launched, spa services, and an online shopping destination at petco.com. “Think Adoption First” is a company philosophy and program, which encourages pet adoption rather than the purchase of companion animals whenever possible. Petco was criticized when they were selling large exotic birds in their shops. In 2005, they signed an agreement with PETA to end the sale of large birds.Petco has never sold dogs or cats, and in 2008, the company stopped selling rabbits as well.
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S&P Outlook: Stable
Moody Outlook: Stable
Typical Lease Characteristics
Lease Term: 10 – 15 Years Years
Lease Type: Absolute NNN Lease
Lease Increases: 10% Every 5 years
Lease Extensions: 4-5 (5) Year Options
Lease Guarantor: Corporate
Positives:
- Public Company, Credit Rated
- Typically Long term leases with increases
Negatives:
- Increasing Competition from online stores
- Competitive Industry Sector
- Susceptible to economic trends and pressures
Market Snapshots:
On Market Ranges:
# of Properties in set: 3
Price: $5,060,910 - $6,808,130Average: $6,024,895
PPSF: $380 - $520Average: $441
Year Built: 1994 - 2013Average: 2004
CAP Rate Range: 5.08% - 6.61%Average: 6.12%
Size range: 10,200 sq ft - 15,260 sq ft Average: 13,247 sq ft
Last 12 Month Range:
# of Properties in set: 9
Price: $3,760,790 - $4,471,160Average: $4,178,655
PPSF: $320 - $379Average: $348
Year Built: 1968 - 2017Average: 1997
CAP Rate Range: 5.76% - 7.18%Average: 6.19%
Size range: 10,355 sq ft - 14,188 sq ft Average: 12,060 sq ft
Petco Company Profile
Headquarters Information
San Diego, California
Founded in 1965
Company type: Private
Industry: Retail
# of Employees: 25,000