In August 2017, PetSmart, the leading pet specialty retailer in the United States, announced that it had spun off its wholly-owned subsidiary Chewy, Inc. At the time, Chewy had become the fastest-growing online pet food and supplies retailer in the US and was challenging PetSmart’s market dominance. The move was seen as a way to capitalize on Chewy’s success and to allow both companies to focus more intently on their respective areas of expertise. By separating the two, PetSmart could focus on its brick and mortar locations and Chewy could focus on its e-commerce business. This decision has given both companies the opportunity to grow, expand, and innovate in ways they could not have while still under the same umbrella.
The PetSmart-Chewy Merger
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In 2017, PetSmart and Chewy merged, creating the largest pet retailer in North America. The merger was seen as a way for PetSmart to increase its presence in the e-commerce sector, as Chewy had established itself as one of the leading online retailers of pet goods.
However, just three years later, the two companies have announced that they are splitting up and that each will go their separate ways. So, why did PetSmart and Chewy decide to part ways?
Why Did PetSmart and Chewy Split Up?
There are a few reasons why PetSmart and Chewy decided to go their separate ways. One of the primary reasons is that the companies had different strategies when it came to growth. PetSmart was focused on expanding its physical stores, while Chewy was focused on expanding its online presence.
The two companies also had different approaches to customer service. PetSmart was more focused on providing in-store experiences, while Chewy was focused on providing a convenient online shopping experience.
Additionally, PetSmart and Chewy had different ideas about how to manage the increasing demand for pet products. PetSmart wanted to focus on expanding its brick-and-mortar stores, while Chewy wanted to focus on its online platform.
Finally, PetSmart and Chewy had different views on how to handle customer loyalty. PetSmart wanted to focus on rewards programs and loyalty points, while Chewy wanted to focus on offering discounts and exclusive deals.
The Impact of the Split
The split between PetSmart and Chewy has had a significant impact on both companies. For PetSmart, the split has allowed the company to focus more on its physical stores and its in-store experiences, while also allowing it to continue to expand its online presence.
For Chewy, the split has allowed the company to focus more on its online platform and its customer service, while also allowing it to expand its product selection and customer loyalty programs.
The split has also had an impact on the pet industry as a whole. With PetSmart and Chewy now operating independently, the industry is now more competitive than ever, as both companies are now able to focus on their individual strengths and pursue their own strategies.
The Future of PetSmart and Chewy
The split between PetSmart and Chewy is likely to have a lasting impact on the pet industry. Both companies will now be able to pursue their own strategies and focus on their individual strengths.
PetSmart is likely to focus on expanding its physical stores and in-store experiences, while also continuing to expand its online presence. Chewy is likely to continue to focus on its online platform and customer service, while also expanding its product selection and loyalty programs.
It remains to be seen how the split between PetSmart and Chewy will affect the pet industry as a whole. However, it is clear that both companies will now be able to pursue their own individual strategies and focus on their own strengths.
**Common Myths About PetSmart Splitting from Chewy**
Myth 1: PetSmart split from Chewy because Chewy was not profitable.
Fact: This is untrue. Chewy was very profitable and had seen significant growth since its founding in 2011. PetSmart decided to spin off Chewy as a separate company because it wanted to focus more on its core pet-retail business.
Myth 2: PetSmart left Chewy because of bad customer service.
Fact: Customer service was not a factor in PetSmart’s decision to split from Chewy. PetSmart was satisfied with Chewy’s customer service and operations, but wanted to focus more on its core pet-retail business.
Myth 3: Chewy will be worse off without PetSmart.
Fact: Chewy has been successful on its own since the split and has seen impressive growth. Chewy has continued to expand its product offerings, customer service initiatives, and partnerships.
Frequently Asked Questions
What caused PetSmart to split from Chewy?
In 2020, PetSmart made the decision to split from Chewy, its online subsidiary. This decision was driven by PetSmart’s goal to become a leader in the pet care space, and to focus on its core retail business, both in-store and online. As a result, Chewy became an independent, publicly traded company in June 2020.
What does the PetSmart/Chewy split mean for customers?
The PetSmart/Chewy split will result in both companies offering different products, services, and promotions. PetSmart will continue to offer its wide selection of pet products in-store and online, while Chewy will continue to offer its online pet products and services. Customers can continue to shop and receive services from both PetSmart and Chewy as before.
Conclusion
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In 2017, PetSmart and Chewy merged to become the largest pet retailer in North America. However, just three years later, the two companies have announced that they are splitting up. Reasons for the split include different growth strategies, approaches to customer service, and ideas on how to manage demand. The split has impacted both companies, allowing them to focus on their individual strengths and pursue their own strategies. The future of PetSmart and Chewy is likely to be competitive, with both companies focusing on their own strengths and pursuing their own strategies.
