Petco Suffers Financial Losses from Overwhelming Loyalty Program Redemptions

Petco's new loyalty program led to unexpected losses, but the company plans to refine it for future growth.

September 9, 2026 One Min Read

POLICY WIRE — City, Country — Petco’s newly launched loyalty program, designed to reward customers more effectively, ended up costing the company significant revenue in the second quarter of 2026.

The revamped Petco Perks program saw an unexpectedly high number of redemptions, leading to a “mid-single-digit millions of dollars” loss in sales during the period, according to executives speaking on an earnings call. The program was introduced in late June with a simplified rewards structure, offering members 10 points per dollar spent on most items and 30 points for purchases on private-label products.

Despite the financial setback, the company is not scrapping the initiative. Executives plan to enhance the program with personalized offers to boost customer spending. CEO Joel Anderson expressed confidence that the program will become a long-term growth driver, with positive results expected in 2027. Meanwhile, same-store sales rose 0.6% year over year in the second quarter, signaling a small but encouraging recovery after four consecutive quarters of decline.

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Reporting by Policy-Wire (PW)

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