Petco Health and Wellness Company, Inc. announced plans to close 25 underperforming stores across the nation. This decision is part of an ongoing effort to revive earnings and improve overall profitability.
The store closures are a strategic move to optimize the company's real estate portfolio and eliminate unprofitable locations. This action aligns with Petco's multi-phased transformation strategy focused on strengthening retail fundamentals and driving structural cost out.
While impacting the top line, these closures are expected to contribute positively to EBITDA by removing locations that do not meet performance expectations. This initiative is a component of the company's broader plan to achieve sustainable profitable growth.
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