Petsmart spun off Chewy in late 2017 in order to focus on its own e-commerce business. The move was seen as a way to shore up the company’s flagging sales and compete with online marketplaces such as Amazon.
com and eBay.
Chewy is a pet retailer that specializes in providing customers with access to a wide variety of pet products, including food, toys, and accessories. Petsmart acquired Chewy in 2016 for $2 billion, and the company has since reported mixed results.
Chewy’s main selling point is its wide selection of products, which can be difficult to find elsewhere. However, the company has struggled to keep up with the competition, and its sales have been in decline.
The spinoff was seen as a way to focus Chewy’s efforts on its own strengths and grow the business.
While the spinoff may have been a positive move for Petsmart, it may not be enough to save the company from bankruptcy. The company has reported declining sales for the past several years, and its stock is currently trading at a fraction of its value from a few years ago.
