What: Major retailers are partnering with pet insurance providers and integrating coverage into their offerings and loyalty programs, expanding value-added services for pet owners.

Why it is important: By offering pet insurance, retailers are responding to rising pet care costs and the demand for comprehensive solutions, positioning themselves as trusted partners in customers’ lives.

Major retailers such as Walmart, PetSmart, Sam’s Club, Petco, and Costco are increasingly integrating pet insurance into their service offerings and loyalty programs, reflecting a broader shift toward value-added services in the pet care market. These partnerships allow retailers to provide customers with access to discounted or customizable insurance plans, bundled pharmacy benefits, and seamless digital integration, making it easier for pet owners to manage both routine and emergency care. The move is driven by a surge in pet ownership, rising veterinary costs, and growing expectations that pet care should mirror human healthcare standards. While the pet insurance market remains underpenetrated, with only a small percentage of pets covered, the sector is growing rapidly, creating significant opportunities for retailers to capture new revenue streams and deepen customer loyalty. By meeting pet owners where they shop and offering comprehensive solutions, retailers are positioning themselves as trusted partners in every aspect of pet wellness.

IADS Notes:

The integration of pet insurance into major retailers’ offerings reflects a broader trend in retail strategy, as documented by Retail Dive (September and October 2024) and Inside Retail (April 2025). Retailers like Walmart, PetSmart, Sam’s Club, Petco, and Costco are expanding their value-added services to deepen customer relationships and differentiate themselves in a competitive market. While direct coverage of pet insurance partnerships is limited, related articles highlight how loyalty programs, influencer marketing, and data-driven engagement are being used to reach pet owners and build brand loyalty. The evolution of pet care expectations—mirroring human healthcare standards—and the growing demand for comprehensive, one-stop solutions are driving retailers to partner with insurance providers and integrate pharmacy benefits. These developments underscore the importance of meeting customers where they shop, leveraging omnichannel presence, and offering innovative services that align with changing consumer needs in the pet category.

Pet insurance is the next big upsell for retailers like PetSmart, Sam’s Club