On April the 18th, PetSmart Inc. announced it had entered into a definitive agreement to acquire the online pet retailer, Chewy. The acquisition will give PetSmart a more dominant hold over the online market, while simultaneously accelerating the execution of the company’s strategy. By correlating with one another, PetSmart and Chewy will improve their capabilities and expand their reach. The move will also increase PetSmart’s selection of products and services online and in-store throughout North America. Before the acquisition is completed, it will need customary regulatory approvals. Nevertheless, PetSmart expects the acquisition to close by the end of their 2nd fiscal quarter of 2017.
Chewy was founded by Michael Day and Ryan Cohen in 2011. Since then, the online retailer’s popularity and grown rapidly. Chewy’s underpenetrated online pet retail component will perfectly complement PetSmart’s consistently growing brick-and-mortar dominance in the United States and North America in general. PetSmart owns more than 1,500 stores and employs approximately 55,000 individuals across North America.
Chewy has already proven to be a success, thanks to their extensive product offerings and unique subscription model. After the acquisition closes, CEO Ryan Cohen will remain at the helm and Chewy will operate as an independent subsidiary of PetSmart. Both companies share many commonalities, including the goal of striving to improve the lives of pets and pet owners. Now, they will operate under the same umbrella. Additional details can be found here.