PetCo

PetCo Animal Supplies Inc. (San Diego) has reported a 2.5 percent same-store sales gain for the second quarter ended July 30, 2005.

“Weaker customer traffic led to second-quarter sales and results that did not meet our expectations,” said ceo James Myers. “By focusing on improving the customer experience, implementing a series of actions to generate traffic and completing an important remerchandising initiative, we believe we are positioning the company to improve its performance progressively as we move through the second half of fiscal 2005.”

Net sales were up 11.3 percent in the first half and same-store sales increased 3.8 percent .

PetCo opened 16 new stores in the second quarter of fiscal 2005. The addition of 11 new stores during the period, net of relocations and closings, increased the store base to 752 locations. During the first half of 2005, the animal supplies retailer opened 50 new stores, or 36 stores net of relocations and closings, and remodeled 29 stores to its Pisces format.

For the full year, PetCo plans to advance its national presence by opening approximately 90 new stores, or approximately 70 new stores net of relocations and closings, while continuing with its strategic initiative of remodeling up to 50 existing stores. To optimize its distribution footprint, the retailer recently opened a new regional distribution center in Denver and expects to open another facility in Orlando later in the third quarter.