BARK (NYSE:BARK) and Petco Health and Wellness (NASDAQ:WOOF) each delivered their respective quarterly results this week, revealing very different paths in their use of technology to adapt to shifting consumer trends and macroeconomic headwinds. BARK posted its first-ever full year of positive adjusted EBITDA, $5.4 million, despite a modest 1.2% revenue decline to $484.2 million. Meanwhile, Petco’s Q1 net sales declined 2.3%, but the company improved gross margins and posted a $13.8 million increase in adjusted EBITDA, reaching $89.4 million. Both companies reiterated their full-year outlooks, even in the face of heightened tariff exposure and consumer softness.
Where the comparison becomes especially relevant is in how each firm is deploying technology to drive transformation.
BARK leaned into its digital-first DTC roots by completing a full migration to Shopify, launching AI-powered customer experiences, and scaling digital services like Bark Air. Petco, in contrast, is modernizing its in-store tech stack, revamping grooming and vet scheduling software, developing customer segmentation engines, and planning a new digital loyalty platform to deepen engagement.
Both companies are investing in tech to gain resilience, optimize operations, and reconfigure growth strategies amid rising costs and changing customer behaviors.
Why It Matters: The pet care industry is becoming a case study in how traditional retailers and digital-native brands use technology differently to create competitive advantage. BARK’s AI and ecommerce innovations show how personalization and platform agility can unlock new revenue models, while Petco’s in-store digital transformation, particularly in services, highlights how tech upgrades can drive retention and operational efficiency. For CIOs, CTOs, and digital strategists, these contrasting approaches underscore the importance of aligning technology investment with the structural realities of your business, whether it’s a supply chain-intensive model or a software-enabled DTC engine.
- BARK’s Full Shopify Migration Unlocks Nimble Experimentation: BARK completed its transition to Shopify, enabling faster A/B testing, improved CAC efficiency, and enhanced product management. CEO Matt Meeker noted, “We’ve stepped into a platform that is much more nimble and allows us to test and try things much quicker.” The platform has allowed BARK to streamline conversion funnels and accelerate product iteration, supporting both DTC and emerging digital service lines.
- Petco Upgrades Services Software to Boost Scheduling and Utilization: Petco enhanced its grooming and veterinary scheduling systems to improve real-time appointment availability and reduce friction in booking. Over 40% of grooming appointments are now booked online. “It is important our pet parents constantly see multiple open time slots, so they don’t consider an alternative grooming solution,” said CEO Joel Anderson. These tech changes support margin expansion and improve service capacity utilization.
- AI-Powered Personalization at BARK Enhances Experience and Economics: BARK has launched an AI-driven digital experience that pairs with each BarkBox shipment. Delivered in a bag instead of a box, this new format includes personalized, themed digital content while lowering costs and reducing tariff-exposed inventory. Meeker called it “a connected digital themed AI driven experience that’s personalized for your dog,” reflecting BARK’s shift to an experience-plus-product hybrid model.
- Petco’s Customer Segmentation and Loyalty Overhaul Underway: Petco is using qualitative and quantitative customer analytics as part of its “North Star” initiative to re-segment its customer base and inform a forthcoming loyalty program, expected in 2026. The company is building a more solutions-oriented marketing strategy to unify its online and in-store experience and better personalize offers, pricing, and promotions.
- BARK and Petco Take Divergent Paths on Tech-Led Diversification: While BARK is using its digital agility to diversify revenue away from DTC subscriptions, expanding Bark Air, launching new apps, and planning a consumables line, Petco is strengthening its omnichannel retail foundation first. Petco’s physical resets, endcap strategy, and real-time pricing analysis are all data-driven, but its major digital innovations are staged for future rollout once operational fundamentals stabilize.
Go Deeper -> Petco Earnings – MarketBeat
