Banfield, the largest pet hospital chain in the U.S., is moving out of Petsmart stores. The company said it will instead focus on its own standalone hospitals and clinics.
The move comes as Banfield faces increasing competition from other veterinary chains and clinics. It also comes as Petsmart itself is facing financial difficulties and is seeking to sell itself.
Banfield has been a subsidiary of Petsmart since 2007, when it was acquired by the company for $1.2 billion. Banfield has since grown to more than 850 hospitals and clinics across the country.
Petsmart said in a statement that it is “committed to providing high-quality veterinary care” and that it “will continue to invest in our veterinary services business.”
It is not clear how many Banfield hospitals will be affected by the move or how many jobs will be lost. A Banfield spokesperson declined to comment on the matter.
The move comes as the U. pet industry is facing a slowdown. A recent report from the American Pet Products Association found that growth in the pet industry has slowed from 6 percent in 2015 to just 3 percent in 2016.
Despite the slowdown, the pet industry is still expected to reach $69 billion in 2017. The vast majority of that spending will go towards food, supplies, and vet care.
Banfield’s decision to move out of Petsmart stores is a sign that the company is feeling pressure from increased competition and slowing growth in the pet industry. It remains to be seen how this will affect Banfield’s bottom line, but it is clear that the company is facing some challenges.
Is Banfield moving out of Petsmart?
Banfield, one of the largest pet hospital chains in America, has announced that they are moving out of Petsmart stores in order to focus on their own standalone hospitals and clinics. This news comes as Petsmart faces financial difficulties and competition from other veterinary chains and clinics increases.
Since 2007, when Banfield was acquired by Petsmart for 1.2 billion dollars, they have grown to include over 850 hospitals and clinics nationwide; however, this recent decision may put a significant dent in their success.
While Petsmart released a statement saying they remain committed to providing high-quality veterinary care, it’s unclear how many Banfield hospitals will ultimately be affected by this move or how many jobs may be lost in the process.
This shift comes at a time when the entire pet industry is seeing a slowdown in growth; According to the American Pet Products Association, what was once a 6% growth rate has now slowed to 3%. In spite of this overall decrease, spending within the industry is still expected to reach 69 billion dollars by 2017.
It appears that Banfield’s choice to leave Petsmart stores is indicative of greater pressures facing the company; between increased competition and slowing industry growth, they seem to be feeling the heat.
