Petco is a U.S. pet specialty retailer operating roughly 1,400 stores alongside a website and mobile app, selling pet products and services across all major pet care needs. Products account for about 80% of revenue, with consumables (food and treats) representing over half of total revenue. Petco sells national brands alongside its own private-label brands — including WholeHearted (food), Reddy (accessories), and So Phresh (litter) — which represent roughly 20% of sales and carry meaningfully higher margins than national brands. Services account for the remaining ~20% of revenue and include grooming salons in virtually all stores, approximately 300 in-store veterinary hospitals, roughly 1,600 weekly Vetco vaccination clinics, and dog training programs. Petco's business model generates retail margin on products and charges fees for services, with margin improvement driven by owned brand mix, vendor cost negotiations, and utilization of existing hospital and grooming capacity. Petco has been executing a multi-year turnaround focused on margin recovery and cost discipline before returning to top-line growth. The current growth phase focuses on expanding owned brands, growing grooming and vet services, improving omnichannel capabilities, and relaunching the Vital Care loyalty program. Petco has been gradually rationalizing its store fleet, closing net stores annually, while targeting ROIC-focused capex of around $140M in FY26. Leverage reduction is also a stated priority, with net debt declining from over 4x to 3x EBITDA during FY25.