Petco simplifies its loyalty program; point redemptions far exceed forecasts
Petco Perks was relaunched at the end of June 2026 to make it easier for customers and employees; sales were nearly flat year over year.
What's happening
Petco relaunched its Petco Perks loyalty program at the end of June 2026: points were hard to redeem under the old program, and the goal was to make that easier for customers and employees. Under the new rules, members earn 10 points per dollar spent on most products and 30 points on private-label brands; 1,000 points equals a $1 discount. According to CEO Joel Anderson, the points customers redeemed far exceeded initial forecasts; the issue lay in redemption, not earning.
Where it comes from
According to CFO Sabrina Simmons, sales were running ahead of the 0.3% growth target before the relaunch; in the end, they were nearly flat year over year, with an impact in the single-digit millions of dollars. The company has limited how fast points can be redeemed and believes the peak in redemptions is behind it. Petco did not change the program retroactively; it is focusing on personalization, and a positive impact is expected in 2027.
Whose desk it lands on
The loyalty program lead and the finance executive. Before a new points rule takes effect, have we worked out together how fast customers will redeem their points and what that will do to the bottom line?
Our view
The CX Brief's interpretation, not a claim made by the source.
Petco's lesson is not about generosity but about redemptions running far ahead of forecasts: once the program got simpler, customers used their points much faster than expected. Any simplification that makes points easier to spend means calculating the pace of redemption alongside the earning rules.
