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PetSmart Buys Chewy.com

12K views 72 replies 33 participants last post by  llombardo 
#1 · (Edited)
#5 ·
Here's a very interesting article from Forbes about Chewy's founder.... check it out. January 2017 article.

Fascinating (from a business perspective). I also hope that the quality and product selection doesn't change.

The Man Who Found Gold in Dog Food (Forbes)

Chewy has already grabbed 43% of the online sales of pet food and litter in the U.S., just behind Amazon's 48%, according to market research firm 1010data. (Big-box retailers Petco and PetSmart are both in the single digits.) "We want to be the No. 1 pet retailer in the world," Cohen says. He has a long way to go. Chewy has yet to turn a profit, and the way it's spending money to acquire customers, it's not clear it ever will.
Cohen, 31, is compulsive about executing, and about other things, too. "I have OCD," he says--though he's never been diagnosed--while digging into a lunch of steamed salmon and vegetables at Chewy HQ. His diet is primarily two meals: steamed vegetables with fish or chicken. He sleeps three hours a night, reading feedback on Chewy's Facebook page into the wee hours. Positive reviews, he says, "give me goose bumps."
 
#11 ·
If that quote states the real state of business
"...
"We want to be the No. 1 pet retailer in the world," Cohen says. He has a long way to go. Chewy has yet to turn a profit, and the way it's spending money to acquire customers, it's not clear it ever will.
..."
then it will not survive on its own.
 
#12 ·
More details are coming out, for those interested.

PetSmart has made the biggest e-commerce acquisition in history, snatching up fast-growing pet food and product site Chewy.com for $3.35 billion, according to multiple sources familiar with the deal.

The deal is a huge one by any standard — bigger than Walmart’s $3.3 billion deal for Jet.com last year — and especially for a retail company like PetSmart that was itself valued at only $8.7 billion when private-equity investors took it private in 2015.
https://www.recode.net/2017/4/18/15339208/petsmart-chewy-acquisition-price-3-35-billion

https://www.forbes.com/sites/susana...hewy-is-selling-out-to-petsmart/#77ccf3cf5725
 
#16 ·
Party like it's 1999, apparently....this seems just like the last dot.com bubble: burn through VC cash long enough to sell your start-up for big money! Profit, schmofit.

In practical terms, there are brands Chewy carries that don't allow their food to be sold in the big box stores -- Fromm is one. It will be interesting to see if they bend the rules now that Chewy is owned by PS. I would also expect the coupon codes to dry up, as PetSmart likely can't sustain the cash burn-rate without a shareholder revolt.

Other options: Petflow and Only Natural Pet are two that come to mind. I love ONP. (I would have said Wag.com but I just got an email from them that they've been swallowed up by Amazon.)
 
#17 ·
This is a bummer.

Chewy is where I get cots, and some toys.

Chewy keeps me sane, so I don't have to go into PetsMart and become irritated by all the crap one sees on any given day.

Ah well, there is still Amazon.

Chewy is more expensive on my dog food that TSC. So I do not buy dog food through Chewy.
 
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#19 ·
I love Chewy. :( Petsmart is the worst of our local chains. Petco is slightly better, and then we have a small local chain called Pet Food Express that's actually pretty awesome. But because they're small they don't have nearly the selection that Chewy has. I hope it's true that Chewy will keep prices lows and offer free shipping for orders over $49.
 
#20 ·
Sad to hear this as well. Don't like supporting PetSmart. And I love buying through Chewy. So much cheaper than anywhere else for what Minka eats, and have a variety of toys I'd have to drive 3 hours (6 total) to get here. Please, please, please don't change Chewy. Just let them do what they do and rake in the money. Don't get greedy or stupid.
 
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#22 ·
No Tractor Supply close by and I'm with selzer regarding the plethora of junky food & treats sold at the big box trio around here. I went to Petsupermarket once and they had grain moths and worms all over the boxes of treats displayed on an end cap. No one in the store noticed?????? Never went back. I've found PetCo is much more expensive then Petsmart but when Traveler gets a gift certificate from all the Santa's here at work, I shop there.:grin2:
 
#23 ·
Wow. I heard good things about chewy but go to our local feed store . I'm greatful for our privately owned pet feed store. It's been around since I was a kid and now I take my kids there. Very happy to they are still in business and pretty close by. Great store. We visit petco / pet smart and good for certain things but not a special place such a big difference.
 
#24 ·
Chewy was more expensive than my local dog food store, so I never used it, and I prefer to support local business. It doesn't make sense to ship heavy items like dog food to each individual, nor is it very environmentally friendly, if you care about stuff like that.

My store here has specials like $5 off each bag of the food I buy this month, then $8 off each bag over Memorial day weekend. No limit. I order a bunch of bags and stock up for the summer. So along with the 5 for 1 deal through Canidae, I end up saving a lot of money buying local. More than $15 a bag! Which matters a lot when feeding multiple dogs.

For specialty items like training equipment, or dog meds, I do buy online, but not at Chewy.

In terms of US economics overall, I think it is far better if people shop locally for dog food and gear whenever possible. It really does make a difference to your community, especially if you live in a small town with just one locally owned store.

I totally understand people who can't find what they need locally, but you might be surprised if you ask, because many stores can special order for you.
 
#25 ·
I have even offered to the local people to buy a PALLET of a food they don't carry but their distributor distributes. Not interested and not interested in carrying my food. .....

My main issue with local stores is when customer service goes out the window.
 
#26 ·
So sad by this. I went ahead and purchased my entire cart before sales sky rocket and customer service goes down hill. Chewys amazing, I got a hand written Christmas card from their VP last year. They have my cat food cheaper, and stock many of the high quality toys I like to use. I also got fantastic beds and crates at great deals. Hopefully they will still be great, but I despise Petsmart.


Rachael & Solo from KS
 
#31 ·
First of all, top of the line food at PetsMart is like Blue wilderness or Nutro Ultra -- they do not have great food. I don't think they carry Diamond Naturals, but if they did, it would be over-priced there.

Secondly, the place is enormous. They have plenty of space for a decent selection of products. But most of their products are cheap and over-priced. And they do not want customer feedback at all. For example, they stopped selling the large pooper scooper shovel with the flat spade. They cost abou 29.99 and the rake thingy, just isn't useful on concrete, nor for when you have less than firm stool. So, you trapse up to the lady at the counter, knowing that the same company makes the large shovel with the spade, and you ask if they can get those. The lady looks at you like you are from Mars, and doesn't bother to even lie and tell you that they will suggest it to the buyer.

They won't.

Cots. They used to sell cots. Coolaroo cots for 29.99, and then went up to 39.99. You can get them from chewy for about $20. But they haven't sold them at PetsMart for years.

Then you have those obnoxious Nutro people following you around the store telling you to buy their crappy food, especially when you want to strangle them because you lost your dog and some pups to the major recall, and the whole time they kept telling you the dry food wasn't effected, and guess what, yes it was.

And, then there are the annoying trainers who make you want to grab the leash out of their hands when the dog isn't even yours. LOL. And they can have decent trainers, BUT, the trainers have their hands tied, by corporate policy. And they charge way too much for their classes. They were charging $110 when the going rate for an obedience judge's training classes was $80. And the snotty-nosed kid who ran that class's claim to fame was owning a very badly behaved bloodhound.

And while I have used their grooming salons, and have never had a problem at my usual PetsMart, but did have them hang one of my girls at the further PetsMart, and then blame the pup for "jumping off the table" while the woman was across the room using the phone. Look, if you tie my dog by the neck to a table, you don't let them jump off! And other people have had their dogs die while in their care.

And don't even let me get started at their sick relationship with Banfield vets.

Yeah, mostly it is piss-poor products, that cost way too much, but their services really are over-priced for the most part and suck big time too.

Sorry, but you asked. And that is how I feel about PetsMart.
 
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