Just in time for Valentine’s Day, Lowe’s has found a perfect match for its first shop-in-shop. Beginning early next month, the home improvement retailer will host Petco sections in 15 Lowe’s locations as part of a pilot program designed to spur sales and expand the customer base of both brands.

Marisa Thalberg, executive VP and chief brand and marketing officer at Lowe’s, said the chain had been selling more and more pet accessories in recent years, including items like a PetProtect Carpet from Stainmaster.

“You take these two trends—the boom in the pet lifestyle market and the boom in housing and DIY market, and they do have this incredible intersection,” she said, noting that she, like many consumers, added a dog to her family during COVID-19. “When a store within a store concept works well is when you take two meaningful resonating brands that aren’t overlapping, but have this incredible ability to complement each other.”

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Through a survey, Lowe’s found that nearly 70% of consumers say pets played a role in the decision-making process when they searched for their current home. Nearly 60% said they would be more likely to shop at a home improvement retailer if they could also purchase pet products in the same location.

The first Petco will open in Lowe’s in Alamo Ranch, Texas, with 14 more planned to open in certain regions by March. The Petco spot, located near the front of the store, will take up roughly 1,100 square feet within the 112,000-square foot Lowe’s store. Along with pet products, the Petco shops will also offer services such as vaccinations, microchipping, and grooming. In addition, Lowe’s will have a photo station for pet pics. Even before the formal photo option, Lowe’s customers have long been posting pictures on social media of their pets, Thalberg said. The #DogsofLowes Instagram hashtag, an organic trend that Lowe’s was not involved with creating, has more than 4,000 posts currently.

 

 

 

 

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Some of those dogs might even appear in the marketing for the collaboration. Lowe’s and Petco are tapping four pet influencers, including a rescue dog named Waffles, to promote the effort. Lowe’s is also running geotargeted social media marketing and a special landing page for Lowes.com/Petco for customers in the area of the Petco stores that will provide an option for buy online, pick up in store.

Shop-in-shops have long been a trend for two like-minded retailers looking to maximize their sales potential and attract new customers. However, in recent months, the trend has grown in popularity. Target now houses Disney and Ulta Beaty shops; Sephora has locations within Kohl’s; and Toys ‘R’ Us was recently resurrected inside Macy’s. Experts credit the rise to marketers’ willingness to try new things and add innovative, destination-type experiences to their brick-and-mortar outposts at a time when ecommerce continues to dominate. The Lowe’s/Petco deal is no exception.

“This is how we create a destinational retail experience,” said Thalberg.

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