Chewy and Petco Stock Are Having Their Worst Years. Fewer People Are Adopting Pets.

“While we saw a surge in pet adoptions during the pandemic period, coupled with stimulus that facilitated discretionary spending, the current economic environment means many consumers are increasingly discerning in their spending and actively seeking out more value,” Petco Chief Executive Ron Coughlin said on the company’s third-quarter earnings conference call on Nov. 29. Shares of both Chewy and Petco headed to their worst years on record. Chewy has fallen 49% this year, while Petco has dropped 64%.