Posted: August 20, 2014, 3:30 p.m. EDT
By Clay Jackson
David Lenhardt, PetSmart’s president and CEO, is quick to acknowledge that online sales make up a small part of his chain’s annual sales revenue, but he’s convinced change is on the horizon.
"We expect [online sales] to become a more relevant source of revenue in the future,” Lenhardt said.
So much so that the Phoenix-based chain of 1,352 stores announced it has acquired Pet360, a Plymouth Meeting, Pa., online network made up of more than nine of the top pet websites, with more than 12 million monthly visitors.
The acquisition provides Pet360 users with access to PetSmart’sexisting web platform and store network, while PetSmart customers will have access to Pet360’s online premium pet brands, including:
· petMD.com—the world’s largest digital resource for pet health information;
· PetFoodDirect.com—the leading online retailer of pet food, medications and supplies;
· BlogPaws—the largest professional network of pet bloggers and social media enthusiasts;
· plus access to dozens of other websites offering pet products at a reduced cost because of increased scale, assortment, web platform and fulfillment capabilities and access to pet-related content from leading pet industry experts.
"Combining PetSmart’s unparalleled strengths in traditional outlets with Pet360’s established digital footprint will perfectly position PetSmart to capitalize on this evolution and enhance our ability to serve pet parents across all distribution channels,” Lenhardt said.
PetSmart will provide its customers with seamless access to the Pet360 e-commerce site, digital media programs and content sites.
The transaction is expected to close in September and is subject to the usual closing conditions as well as receipt of regulatory approvals.
In other news, PetSmart revealed that its net income for the second quarter of 2014 increased by more than 5 percent to $98 million, compared to $93.4 million in the second quarter of 2013.
The retailer also posted a more than 10 percent increase in year-over-year earnings per share, with second quarter earnings totaling 98 cents per share.
As part of a long-term growth initiative, PetSmart is reducing costs, is broadening its selection of grocery store and mass brands, and will be introducing more proprietary and exclusive brands.
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