Recently PetSmart announced its' plan to acquire Chewy, an online pet foods, treats and products retailer, which led Tuffy’s Pet Foods to stop offering their products on the website.
“While we have respect for the success and growth witnessed by the large and mass retailers they do not fall within the channels we choose to support with our product and marketing plans,” said Tuffy’s executives in the press release. “It is our strong intent to continue with our current marketing plan focused on the independent specialty retailers and family owned businesses.”
PetSmart has entered into a definitive agreement to acquire Chewy, Inc., an online pet food and products retailer. The acquisition, which is subject to customary regulatory approvals, is expected to close by the end of PetSmart’s second fiscal quarter of 2017.
Upon closing, Chewy will continue to be led by CEO Ryan Cohen and operate largely as an independent subsidiary of PetSmart, focusing on its current business strategy, while PetSmart will continue to execute its strategic initiatives across the combined company.
Chewy is an online pet food retailer and has seen significant growth since it was founded by Ryan Cohen and Michael Day in 2011. Chewy’s position in the growing, underpenetrated online pet retail segment complements PetSmart’s footprint in brick and mortar, with over 1,500 stores and 55,000 associates across North America. Chewy’s product selection and subscription model have attracted and retained a customer base that has contributed to the growth of customers purchasing pet food online.
While cat trends continue, the pandemic has added to overall slow-growth treatment of the cat food market.
Premiumization and humanization, as well as automation, fueled continued operation growth in spite of the COVID-19 pandemic.