Will Chewy.com help PetSmart gobble up the online pet market?
PetSmart announced yesterday that it has reached a definitive agreement to acquire the online pet products retailer, Chewy.com. In making the deal, PetSmart, which operates 1,500 stores, acquires a major online player that has achieved significant growth since its founding in 2011.
Chewy grew to the second largest online seller of pet products in the U.S. during the first quarter with a 24.9 percent share of the category, according to Slice Intelligence. Amazon is the largest online seller of pet products with a market share of 57 percent. PetSmart, with a 1.7 percent share, is ranked fifth among online sellers of pet products.
“We are focused on improving our customers’ experience in-store and online as we continue to execute against our long-term strategic initiatives,” said Michael Massey, president and chief executive officer of PetSmart. “Chewy’s high-touch customer e-commerce service model and culture centered around a love of pets is the ideal complement to PetSmart’s store footprint and diverse offerings.”
“Since we started Chewy, we have been dedicated to understanding and satisfying the evolving needs of our customers to deliver the highest quality pet products and customer service,” said Ryan Cohen, co-founder and CEO of Chewy. “Combining our strong e-commerce expertise with PetSmart’s best-in-class infrastructure, footprint and breadth of offerings including services will help us ‘wow’ our customers even more.”
Mr. Cohen will continue to lead Chewy once the deal with PetSmart has been finalized. The company will operate as an independent subsidiary of PetSmart. Both companies will share capabilities and product offerings to better serve customers.
- PetSmart Announces Agreement to Acquire Chewy, A Leading Online Pet Retailer – PetSmart
- Has Chewy.com proven that online sales are going to the dog? – RetailWire
DISCUSSION QUESTIONS: What will PetSmart’s acquisition of Chewy mean for pet product retailers and their rivals? What will PetSmart and Chewy need to do to make this deal a success?