Third time's a charm - PetCo is banking on it. According to The Guardian, it's also counting on some added millennial charm to help boost it towards the finish line in its third attempt at an initial public offering. Investors heaving a sigh of "We've heard this one before," might be pleased to hear PetCo's newest spin in its filing papers. Besides, who could say no to those puppy dog eyes?
Certainly not millennials as much as baby boomers, according to its report. More than three quarters of millennials indicated in a survey that they would indeed splurge on an item for their pet rather than subject their little scoundrel to (ugh) bargain bin pet purchases. Meanwhile, only 50 percent of baby boomers said the same. We know - the sheer horror (cue the world's tiniest violin...).
It's a pet-eat-premium world
The majority also said they believed their pets had a positive impact on their mental and physical well-being, which explains why most (87 percent of dog owners and 82 percent of cat owners) said they considered their pets a part of the family - the expensive part.
And if love knows no bounds, a family's love for its pet knows no macroeconomic bounds. Even through the last recession, spending on pets steadily increased, jumping from $47.2 billion in 2005 to $62.7 billion in 2010 to $76.6 billion in 2015. In 2014, average household spending on pets reached $1,150 for the year.
Millennials are taking on a higher share of the outspend with pet ownership among 18 to 29-year-olds up from 50 percent in 2010 to 59 percent four years later - which, for PetCo, means opportunity.
Give a dog a bone
According to its filing, the company sees the millennial market as the next frontier in dominating America's $74 billion specialty pet sector. Estimates suggest the company already accounts for 16 percent of all specialty and independent retail pet spending in the U.S. Its loyalty card database reached 19.1 million active members by the end of 2014 - who, collectively, made up 87 percent of its total sales for the year. It makes sense that the company plans to inject much of the $100 million it hopes to raise into expanding its loyalty program, premium-buyer customer base, and digital platforms - because, millennials.
Although the company went private in 2006 after a $1.8 billion buyout by TPG Capital and Leonard Green, the cash is often greener on the other side, isn't it? Time to get back into the public rat race, then. Investors will decide whether or not it's barking up the right tree (sorry - we had to).