Pet Supply Company Chewy Sold to PetSmart for Billion: Industry Game-Changer

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Imagine scrolling through your favorite pet supplies on Chewy, only to discover that it’s now under new ownership. That’s right, Chewy, the go-to online retailer for pet parents, has been sold to PetSmart for a whopping billion dollars. This move marks one of the most significant acquisitions in e-commerce history, especially in the pet industry.

You’re probably wondering what this means for your late-night pet shopping sprees. Will Chewy still be the same user-friendly, pet-centric site you’ve come to rely on? This sale has sparked a lot of chatter among pet lovers, with questions swirling about the future of Chewy under PetSmart’s wing. Let’s dive into what this big change could mean for you and your furry, feathered, or finned friends.

Key Takeaways

  • Chewy’s sale to PetSmart for $3.35 billion marked the largest e-commerce acquisition at the time, highlighting the significant potential and value in online market niches, especially those driven by passionate communities like pet owners.
  • The acquisition of Chewy by PetSmart represents a pivotal moment in the retail and e-commerce industry, indicating a major shift towards digitalization and the importance of maintaining core company values and customer-centric approaches for achieving success.
  • Pet owners express concerns regarding potential changes following the acquisition, including potential impacts on product quality, pricing and policies, customer service standards, and delivery systems.
  • The future of Chewy under PetSmart’s ownership is seen as a blend of opportunities and challenges, with the potential for expanded product offerings, customer base growth, and a hybrid retail model that combines online convenience with physical store benefits.
  • The Chewy-PetSmart deal is expected to have broad impacts on the pet supply industry, including driving market dynamics, spurring innovation, and elevating customer expectations for seamless shopping experiences across both online and brick-and-mortar platforms.

Chewy’s Acquisition by PetSmart

Imagine, you’ve poured your heart and soul into building a startup. It grows, it thrives, and eventually, it captures the eye of a giant in the industry. That’s the story of Chewy, an ambitious online pet supplies retailer that made waves large enough to attract PetSmart, a leader in the pet retail space.

This acquisition, valued at a whopping $3.35 billion, wasn’t just another business deal. It was history in the making, representing the single largest e-commerce acquisition at the time. For entrepreneurs and business enthusiasts like you, this move was a clear indicator of the value and potential within online markets, especially in niches fueled by passionate communities like pet lovers.

Here’s a quick look at the figures that made this deal monumental:

EntityValue (in billions)
Chewy’s Sale$3.35
Previous Record$3.3 (

For Chewy, this wasn’t the end but a new chapter. Operating under the vast umbrella of PetSmart offered Chewy resources and market access like never before. However, it also posed a critical question — how would Chewy maintain its entrepreneurial spirit and customer-centric approach post-acquisition?

Pet lovers and Chewy’s loyal customers waited with bated breath. The partnership promised scale but rang alarm bells about potential shifts in Chewy’s ethos. Would Chewy’s heart and soul remain, or would corporate interests dilute the brand’s beloved user-friendly approach?

As you navigate your entrepreneurial journey, witnessing these industry-shifting moves provides invaluable insights. Not only do you get to see live case-studies of acquisitions but also understand the dynamics of maintaining a brand’s core values amidst monumental growth. Chewy’s story is a playbook on balancing scale with soul, a challenge every growing business eventually faces.

The Significance of the Acquisition

You’ve seen the headlines: “Pet Supply Company Chewy Sold to PetSmart for Billion.” But as someone who’s deeply immersed in the world of online business and startups, you know there’s more to this story than just the staggering price tag. This acquisition isn’t just another corporate transaction. It symbolizes a pivotal moment in the retail and e-commerce landscape, especially in the pet industry.

$3.35 billion – that’s the number that’s been making waves. As the biggest e-commerce acquisition to date, it’s a testament to the incredible growth and potential that online businesses hold. For you, an entrepreneur who thrives on scrutinizing the anatomy of success, this move by PetSmart isn’t just about expanding its market share. It’s a bold statement on the value of innovation, customer focus, and the foresight to embrace the digital world.

Chewy, having carved its niche by offering an unparalleled customer experience, stands as a beacon for startups everywhere. This acquisition underscores a crucial lesson: maintaining your core values and focusing on solving real customer problems can pave the way for monumental success. It’s a narrative that resonates with you as you navigate your journey in the volatile seas of entrepreneurship.

But beyond the immediate financial implications, this deal poses questions about the future of retail. How will traditional brick-and-mortar giants continue to adapt in an increasingly digital world? This question lingers in your mind as you ponder the evolving dynamics between offline and online retail channels. You understand that balancing scale with maintaining a brand’s essence is a delicate dance – one that Chewy has performed exceptionally well under the looming shadow of PetSmart’s corporate umbrella.

As you reflect on this acquisition, it’s clear that the landscape of retail, both online and traditional, is changing. And for someone with your entrepreneurial spirit, this represents not just a shift, but a plethora of opportunities waiting to be explored. The Chewy-PetSmart deal isn’t just a transaction; it’s a narrative rich with insights and lessons on growth, innovation, and the enduring power of putting customers first.

Concerns and Questions from Pet Owners

With the news of Chewy being sold to PetSmart for a jaw-dropping $3.35 billion, you might be scratching your head, wondering what this means for you and your furry friends. It’s a massive move in the pet industry, one that can’t help but generate a whirlwind of questions and concerns among devoted pet owners like yourself.

Will the Quality Suffer? This is likely the first question on your mind. Chewy has built a reputation for high-quality products and exceptional customer service. Now that it’s under the PetSmart umbrella, you might be worried that the quality could dip. After all, scaling up often comes with growing pains.

Changes in Pricing and Policies – Chewy’s competitive pricing and friendly return policies have been a huge part of why you’ve trusted them for your pet’s needs. With the acquisition, there’s understandable anxiety around potential price hikes or policy changes. Could deals and discounts become less frequent? It’s a valid concern.

The Future of Customer Service – Chewy’s human-centric customer service is legendary. You’ve likely read stories or experienced firsthand their empathy-driven approach. The worry here is whether PetSmart will continue this legacy. Maintaining that level of service with a significantly larger customer base is no small feat.

Supply Chain Adjustments – Chewy’s efficient delivery system has been a boon for pet owners, ensuring your pet’s needs are met promptly. There might be questions about how this system will mesh with PetSmart’s existing operations. Could this integration affect delivery times?

As entrepreneurs and business enthusiasts, we know that acquisitions can be turning points for companies. They offer incredible opportunities for growth but come with their fair share of challenges. How PetSmart navigates these concerns will be critical in maintaining Chewy’s loyal customer base and capitalizing on the potential of this monumental acquisition.

The Future of Chewy Under PetSmart

As an entrepreneur and someone who’s navigated the turbulent waters of online business, the Chewy-PetSmart deal sparkles with potential. You’ve seen startups become titans and titans falter; this acquisition promises an intriguing journey ahead. For both companies, and especially for Chewy, the future seems bright, but it’s paved with challenges and opportunities alike.

Firstly, let’s talk expansion. Under PetSmart’s umbrella, Chewy has the potential to dramatically expand its product offerings and customer base. Imagine Chewy leveraging PetSmart’s extensive supplier relationships to bring even more variety and value to its customers. This could mean an enriched product lineup, from eco-friendly toys to specialized pet foods, broadening its appeal.

But here’s where it gets spicy: integration. Blending Chewy’s revered customer service and innovative online presence with PetSmart’s physical retail might is a game-changer. This could redefine pet retail, creating a hybrid model that blends the best of both worlds. You’ve seen it before – when done right, this kind of synergy doesn’t just add value; it multiplies it.

However, the road ahead isn’t without its bumps. The very culture and agile operation that propelled Chewy to success could be at risk. Preserving Chewy’s startup ethos within the larger corporate structure of PetSmart will be key. You know first-hand how vital culture is to a company’s ongoing innovation and customer satisfaction. Herein lies a delicate balancing act: scaling up without losing the essence of what made Chewy special in the first place.

In terms of customer experience, the fusion of online convenience with tangible in-store interactions could set a new industry standard. Imagine personalized shopping experiences both online and in PetSmart stores, powered by Chewy’s data-driven insights. This would not only enhance customer loyalty but could also attract a new segment of pet owners seeking a more holistic and interconnected shopping journey.

So, as you watch this space, remember that the success of this acquisition isn’t solely in the numbers. It’s in the potential to revolutionize how pet owners shop, and in how two different business models can come together to create something truly innovative in the retail space.

Impacts on Pet Supply Industry

Let’s dive into how the Chewy acquisition by PetSmart has sent ripples through the pet supply industry. You’ve probably noticed the shift in where and how you buy pet supplies. This deal is a big part of that change.

First off, market dynamics have shifted. Traditional brick-and-mortar stores are now facing an even greater challenge. With Chewy’s robust online presence backed by PetSmart’s resources, these two have set a high bar. You may find your local pet stores ramping up their online services or offering unique in-store experiences to compete.

Then, there’s the innovation drive. Chewy was already a disruptor in the pet supply market, known for its customer service and wide range of products. Under PetSmart, Chewy has the potential to push even more boundaries. You might soon see new technologies and services that could make your pet care routine more convenient. Imagine smart pet products that integrate with your home systems or subscription boxes tailored exactly to your pet’s needs.

Lastly, customer expectations are evolving. Pet owners now demand more than just products; they want a seamless shopping experience, whether online or in-store. This acquisition could set a new standard for what customers expect from pet supply companies, pushing others in the industry to up their game in quality of service and product variety.

Here are some key figures to consider:

YearOnline Pet Supply Sales Increase (%)In-Store Pet Supply Sales Growth (%)

These numbers highlight the growing significance of online platforms in the pet supply sector. They signal not just a temporary shift but a lasting transformation in consumer behavior and market structure.


With PetSmart’s acquisition of Chewy, the pet supply industry stands on the brink of a significant transformation. It’s clear that the merger not only shakes up the competitive landscape but also paves the way for innovation and enhanced customer service. As pet owners, you’re right in the middle of an exciting time where your expectations are not just being met but exceeded. The future looks promising, with the potential for more tech-driven solutions and a shopping experience that’s as enjoyable for you as it is for your furry friends. Keep an eye on this space because the journey of Chewy under PetSmart’s wing is just beginning and it’s bound to bring some interesting changes to how you pamper your pets.

Frequently Asked Questions

When did PetSmart acquire Chewy?

PetSmart acquired Chewy in 2017, marking a significant shift in the pet supply industry by combining Chewy’s strong online presence with PetSmart’s established retail footprint.

How has the acquisition of Chewy by PetSmart impacted the pet supply industry?

The acquisition has intensified competition, especially for traditional brick-and-mortar stores, by leveraging Chewy’s online platform with PetSmart’s resources. This has pressured other retailers to improve their online services and customer experience.

What potential innovations could arise from PetSmart’s acquisition of Chewy?

Under PetSmart’s ownership, Chewy has the potential to introduce new technologies and services that could revolutionize shopping experiences for pet owners, ranging from personalized shopping to advanced delivery options.

How are customer expectations changing in the pet supply sector?

Customers now seek seamless shopping experiences that blend the convenience of online shopping with the immediacy and customer service of physical stores. They also expect a wide range of products and fast delivery options.

What does the future look like for online platforms in the pet supply industry according to the article?

The article suggests that online platforms like Chewy will continue to gain significance in the pet supply sector, driving innovation and setting new standards for customer service and experience in the industry.