Petco expands shop-in-shop partnership at Canadian Tire

Shop-in-shop Petco experiences will roll out to 90% of Canadian Tire’s 1,700 retail locations this year.
A Canadian Tire store.
  • Petco is expanding its partnership with Canadian Tire.
  • Shop-in-shop Petco experiences will roll out to 90% of Canadian Tire’s 1,700 retail locations. 
  • Canadian Tire is implementing its new strategy, a $3.4 billion investment focused on omnichannel growth. 

Petco Health and Wellness is expanding its partnership with Canadian Tire, bringing its shop-in-shop concept to the majority of the retailer’s stores across Canada.

Petco in a Feb. 15 release said the expanded presence at Canadian Tire included selling its exclusive product assortment on Canadian Tire’s website and in shop-in-shops inside 90% of the retailer’s 1,700 stores by the middle of this year. The expanded partnership follows Petco and Canadian Tire’s initial team-up in 2018.

"Through our exclusive expanded partnership with Canadian Tire, we're growing awareness of — and access to — Petco's health and wellness products within Canada's dynamic and rapidly growing pet market," said Amy College, Petco chief merchandising officer, in the release. "Four years after our teams brought this exciting and innovative concept to pet parents, the continued growth of our partnership speaks to pet parents' deep confidence in Petco's pet care expertise, as well as the power and reach of Canadian Tire's connection with local markets. These shop-in-shops will continue to bring innovation to existing Canadian Tire pet parents and attract new customers for years to come." 

Products that will be available to Canadian Tire shoppers include Whole Hearted, Petco’s food and pet treat line, and its Reddy pet lifestyle and fashion brand. Other products include SoPhresh pet litter and Well & Good pet care products, according to the release. 

Canadian Tire is the seventh-largest retailer in Canada based on revenue, according to a 2022 survey from Edge by Ascential. The retailer ranked behind major chains like Loblaws, Costco, Sobeys, Walmart and Amazon. It ranked ahead of other major chains — The Home Depot, The Jim Pattison Group and RBI. 

For Canadian Tire, the expanded Petco partnership is part of its new “Better Connected” strategy, unveiled last year. The strategy aims to “make life in Canada better” and involves a $3.4 billion investment in significant improvements to its omnichannel experience for consumers. According to a 2022 release, the retailer’s strategy includes greater partnerships with other retailers and brands, like Petco, Levi’s and Reebok, and a greater focus on its owned brands.

The strategy also includes new store formats, including its new “Concept Connect” format, which will roll out to around 225 Canadian Tire stores, the company said. Also on the menu are larger stores, which are more than 100,000 square feet. Two locations opened last year and a third is expected to open in 2025, according to the retailer. 

While small-format stores have been popular with numerous retailers  during the past several years, major retailers — like Target and Sam’s Club in the U.S. — are also toying with larger-format stores, which often offer more open layouts for shopping and a larger omnichannel fulfillment area.