Ron Coughlin, who led Petco for five years as the pet retailer’s CEO, announced Wednesday he was stepping down from the company and would remain as an advisor to the board. Petco named Michael Mohan, the former Best Buy president and COO, interim CEO while the board conducts a search for a permanent chief executive. Mohan has served on the Petco board since 2021. In addition to serving as Best Buy’s president and COO, he held other leadership roles there from 2004-2019.
“Mike’s highly successful track record across multiple segments of the retail industry, deep knowledge of Petco and strong operational skills make him the ideal executive to ensure a seamless transition as Petco moves forward,” said Cameron Breitner, a member of the Petco board.
Total Retail’s Take: Petco reported a net loss of $22.6 million in the three-month period that ended Feb. 3, according to CNBC. The news outlet said that as of close of market Tuesday, Petco’s stock is down about 19 percent year to date. Its stock rose 3.5 percent early Wednesday in response to the change in leadership, according to MarketWatch.
Petco — and the pet industry as a whole — fared very well during the COVID-19 pandemic as people increased their time spent at home and welcomed more pets into their families, and all the associated spending that comes with pet ownership (e.g., food, toys, healthcare, etc.). However, Petco and other pet retailers have been in a challenging consumer environment as the surge in demand for pet supplies, toys and food has started to wane post-pandemic. The Petco board is hoping a change in leadership will help the retailer regain its momentum.
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