CNP payments took center stage yesterday as PetSmart made one of the most expensive e-commerce acquisitions ever when it agreed to buy online retail pet supply store Chewy.com. Published reports said PetSmart spent $3.35 billion to secure the Florida-based company, which would eclipse the $3 billion Walmart paid for Jet.com less than a year ago.
The deal underscored the necessity of developing a strong e-commerce function, even for retailers grounded in bricks and mortar, and also highlighted the increasing prominence of the subscription model, which Chewy leverages to offer automatically recurring shipments of pet food and other supplies. In fact, PetSmart pointed to its subscription offering as one of the major contributors of Chewy’s growth and a feature it said will positively affect customer retention.
“We are focused on improving our customers’ experience in-store and online as we continue to execute against our long-term strategic initiatives,” said Michael Massey, president and CEO of PetSmart. “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.”
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