Retail giant PetSmart has acquired online pet food retailer Chewy in a massive deal.
Two major pet retailers have combined; on April 18th, PetSmart announced that is will acquire online pet food retailer Chewy. The agreement is expected to be finalized by the second fiscal quarter of 2017.
Michael Massey, president and chief executive officer of PetSmart, said;
"PetSmart strives to be the trusted partner to pet parents and pets in every moment of their lives. We are focused on improving our customers' experience in-store and online as we continue to execute against our long-term strategic initiatives. 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. Together, PetSmart and Chewy will provide the most convenient customer experience to a wider base of pet parents across every channel."
Chewy, which specializes in online sales of pet food and pet products, experienced massive growth over the past few years. Founded by Ryan Cohen and Michael Day in 2011, Chewy found great success with its subscription model which allowed pet owners to have their pet's food timely delivered directly to their homes. During its first full year in business, the business experienced $26 million in sales. In 2016, the business registered an impressive $900 million in sales.
The secret behind Chewy's success? Great customer service. With more than 2 million customers nationwide, the online retailer established an excellent reputation for being a customer-friendly company. Additionally, it sends hand-painted pet portraits to 700 randomly selected customers every week as a "thank you" for their business.
There's no word on how PetSmart plans to manage the two companies, or if there are plans to change Chewy's business model. However, pet owners who rely on Chewy's excellent customer service and regular pet food deliveries are hopeful that the acquisition won't result in significant changes to the service that they've come to know and love.
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