Sears, Kmart to close 43 more stores as retail crisis continues

July 10, 2017 in Latest News

Sears Holdings continued its steady drip of store closures Friday with the announcement that it would close 35 more Kmart locations and eight Sears stores.

The department-store chain’s troubles have included several rounds of store closures this year, now totaling more than 300.

Although the iconic American department store chain still has more than 1,000 locations, Sears has buckled under pressure from online competitors, having failed to reinvent its traditional store experience.

“We have fought hard for many years to return unprofitable stores to a competitive position and to preserve jobs and, as a result, we had to absorb corresponding losses in the process,” Sears CEO Eddie Lampert said in a blog post.

“It is obvious that we don’t make decisions to close stores lightly. Our efforts have been, and will continue to be, fact-based, thoughtful and disciplined, with the goal of making Sears Holdings more relevant and more competitive for our members and other constituents.”

The new closures include four Kmarts in Florida and three in Ohio, and three Sears locations in Indiana. (See the full list.)

Sears is one of many retail giants struggling to find its footing, or simply survive, amid a landscape dramatically transformed by a shift to online shopping and rise of Amazon.

J.C. Penney has said it will shutter 138 locations, roughly 14% of its stores, and give buyouts to 6,000 employees. Macy’s plans to shut 68 stores. Radio Shack, which has sought bankruptcy protection twice in two years, has closed more than 1,000 locations since Memorial Day weekend. And one-time mall favorites Bebe, The Limited, and Wet Seal have closed or are in the process of shuttering all of their storefronts.

Sears’ latest round of cuts comes less than a month after the most recent round, in which the company quietly announced plans to close 20 locations.

 Sears acknowledged in March that there was “substantial doubt” it would survive on its own, though the company said its cost-cutting maneuvers and other retail strategies would greatly improve its chances of carrying on. Lampert has blasted critics for treating Sears like it’s dead.

Lampert said Friday in a blog post that the company would add small-format locations, though he did not provide specifics on the plan.

The company is close to meeting its previous target of $1.25 billion in cost cuts for the year, which includes the store closures and corporate layoffs. And it said Friday that it had gotten an agreement that would allow it to borrow up to $500 million more from a current loan, as well as finalized the sale of more than $200 million in properties which allowed it to pay off part of its debt.

“We expect additional real estate sales to pay down even more of our debt and to generate liquidity for the company,” Lampert said in the blog post.

Sears has also raised about $900 million by selling its Craftsman brand.

 

Source: USA TODAY

 

Analyst: Amazon poised to enter drugstore market

July 5, 2017 in Latest News

Dive Brief:

  • Walgreens Boots Alliance’s CEO Stefano Pessina on Thursday shrugged off the idea that Amazon might get into the drugstore business, saying the e-commerce giant was more likely to focus on less complicated retail areas. “Honestly I don’t believe that Amazon will … because they have so many opportunities around world and in many other categories, which are much, much simpler than healthcare, which is a very regulated business,” Pessina told analysts, according to a transcript from Seeking Alpha.
  • Amazon already sells medical devices and employs executives to deal with health care-related regulatory issues, and is said to be exploring how to ramp up its efforts in the pharmacy space.
  • Despite reservations, Pessina did say that Walgreens would be open to partnering with Amazon if it came to that: “If we were wrong and our belief was wrong, I believe that at the end of the day, we could find our goal in the new environment and we wouldn’t exclude to partner with them, we wouldn’t exclude to analyze the new situation of the market and to find our place adapting ourselves.”

Dive Insight:

Sales of prescription drugs provide drugstore chains with a steady stream of customers, but it’s a volatile space. Big-dollar corporate and government contracts are won and lost, generic versions of often-prescribed medicines can ding sales, and the Affordable Care Act has brought some price pressures to the health care sector in general, bringing costs down for consumers but not necessarily for retailers. Added to the instability is the current political environment, where recent actions by Congress and the Trump administration are poised to disrupt the space further.

Amazon’s major foray into brick-and-mortar via its proposed $13.7 billion acquisition of grocer Whole Foods has led to speculation that it could make a similar play in pharmacy.

Although Pessina downplayed Amazon’s ambitions in the segment, Leerink Partners analyst David Larsen said in a note to investors that the segment is primed for an entry by Amazon, considering Rite Aid’s availability and Amazon’s strengths, including its logistical prowess and sticky Prime membership base. Amazon has “the scale, logistical expertise, distribution footprint, and devoted consumer following,” he wrote, according to Barron’s. “What it lacks are relationships with pharmaceutical companies and distributors.”

It’s not just Walgreens, Rite Aid or CVS that would be challenged by such a move; Amazon in the pharmacy space would also challenge Walmart, a major pharmacy player with the advantage of a huge physical store fleet that is increasingly willing to go head-to-head with Amazon in e-commerce. With new features added to its mobile app for pharmacy and money services customers, including new ways for shoppers to skip regular checkout lines, Walmart is looking to differentiate the shopping experience by offering the same level of convenience as Amazon while continuing to leverage its physical footprint, Stephan Schambach, founder and CEO of mobile platform NewStore, told Retail Dive in an email. (Schambach is also the founder of e-commerce platform Demandware, which recently sold to Salesforce).

But Walmart’s new features won’t necessarily stop Amazon from bringing its own strengths to the space, which is highly regulated, but also highly lucrative, he noted. “Though challenges may arise in entering a regulated market, breaking into a multi-billion market opportunity for the e-commerce company can lead to huge success,” he said. “Speedy delivery options and lower drug prices is the next step for Amazon in addressing the massive demand for a simpler, faster, overall more convenient shopping experience.

Source: Retail Dive

The Future Of Retail: How We’ll Be Shopping In 10 Years

June 27, 2017 in Latest News

You’ve probably heard that brick and mortar retail is in trouble. Even industry giants are closing hundreds of stores.

Given retail’s steady migration to mobile and e-commerce, you may be wondering what retail will look like in the future. As predicted by futurist Faith Popcorn, we can continue to expect hyper-customized concierge and on-demand services, and what she calls “consutainment,” the integration of ultra-convenience, consumption, and entertainment.

Are we all going to shop at home in our underwear? Will physical storefronts go away? Move over, Jetsons. Here are a few things you can expect to see based on current technology that’s in the works.

Ultra-Fast Delivery

Today, the norm is two-day delivery. But if you’ve been paying attention, you know that’s changing. In fact, a surprisingly high 25% of consumers said that they would abandon their orders if one-day delivery wasn’t available.

Of course, that’s just the beginning. Two-hour drone delivery is coming in the foreseeable future, and Amazon is already talking about 30-minute drone delivery.

Your Kitchen Will Restock Itself

While Amazon has pioneered the “Dash Button,” in the not-so-distant future, your pantry will literally order your products for you. One stealth startup, WePlenish, is already launching a line of “IoT-powered” smart containers that promise to revolutionize the modern kitchen.

You won’t have to worry about running out of essentials like coffee, pet food or snacks because your containers will sense inventory levels and replenish those items without you having to lift a finger. No more waking up to find your coffee stash is empty or last-minute trips to the grocery store because you forgot to buy pet food.

Know Exactly What’s In Stock Where

Have you ever gone to a store hoping to buy something, only to learn that they were out of stock? A new feature from Google Home allows people to ask Google Assistant to find in-stock products at the closest store.

For example: “Google, where can I find the Nintendo Switch console?” Assistant will tell you how many stores have it right then and how close they are.

Of course, it isn’t currently available for all stores in all locations, but you can already see a future when it has become standard.

Forbes Communications Council is an invitation-only organization for communications, public relations, public affairs and media relations executives.  Do I qualify?

“With the proliferation of mobile devices, smart glass and smart appliances, e-commerce and the marketing associated with it will become more intertwined to our future instant gratification lifestyles,” says Greg Yevich, co-founder and technology director of OperationROI, an e-commerce marketing firm and our client. “Every touchpoint — from digital to TV, radio and social networks — will let shoppers complete immediate purchases on the spot.”

Source: Forbes

The Day That Changed Retail

June 19, 2017 in Latest News

 

It’s the moment Amazon.com investors have been waiting for and everyone else has been dreading. For years, Amazon watchers have wondered when founder and CEO Jeff Bezos would pull the trigger on a broader plan to remake the retail landscape. Friday seems to be the day.

 This morning, Amazon announced it had agreed to buy Whole Foods Market for $13.7 billion.

The idea has been percolating in recent months, but it still caught Wall Street by surprise. Shares of the big grocery chains tumbled on the news. Kroger was down 13% and Sprouts fell 11%. Even more diversified names are feeling the pain, with Target down 9%, Costco down 6%, and Wal-Mart falling 5%. Amazon shares, already on a tear in the last 18 months, were up 3% on the news.

(Wal-Mart made its own purchase Friday, buying online apparel maker Bonobos for $310 million.)

Whole Foods investors were thrilled that Amazon had arrived to save the struggling chain. Its stock soared 27% on the offer, even though the deal, priced at $42 per share, values Whole Foods at 35% less than its 2013 peak.

After reshuffling — some might say ravaging — the bricks-and-mortar landscape from the sidelines, Amazon is now jumping in with both feet. The company was typically demure in its short press release on the deal. “Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades – they’re doing an amazing job and we want that to continue,” Bezos said in a press release. But it would be naive to think Amazon simply wants to nourish organic food customers. Grocery stores are a tough business without much profit to be made.

For Amazon, the deal is likely part of a broader strategy to bring Amazon physically closer to customers. Having a network of bricks-and-mortar stores could shorten delivery windows for all manner of products, whether heirloom tomatoes, batteries, or books.

Amazon has been working on ways to improve its network for years. It’s started AmazonFresh, a grocery delivery service in 2008. And it’s been leasing planes to create its own shipping service. Whole Foods has become the latest piece of the puzzle.

Source: Barrons Next

In the wake of Gymboree’s bankruptcy filing, here are the retailers that could be next

June 15, 2017 in Latest News

It’s only Monday, and the retail sector has already seen a rough start to the week.

Gymboree’s filing for Chapter 11 bankruptcy protection has many retail industry watchers wondering who’s next. With the record pace of bankruptcies in the industry this year, bankruptcy, for some, is becoming an issue of when the company will file, not if they will.

So far this year, specialty retailers Rue21 and Payless Shoesource are among those contributing to the rising default rate in the sector, Fitch explained.

In a research note Monday, Fitch highlighted its so-called loans of concern list, which includes: Sears Holdings, Claire’s Stores, Nine West Holdings, 99 Cent Stores, J. Crew, True Religion Apparel, Charlotte Russe, Charming Charlie, NYDJ Apparels and Vince.

Retailers on the list are considered to have a significant risk of default within the next 12 months.

Taking a look at Fitch’s latest list, “a number of these names have been at the forefront of past restructurings,” Joshua Friedman, a legal analyst for Debtwire, told CNBC in an interview.

“Struggling retailers need to look at near-term triggers, such as debt that’s maturing, interest expense and interest payments coming due,” he went on.

High debt leverage and weak operating trends are what drove Gymboree’s filing specifically, Fitch said in a statement Monday.

In conjunction with its latest filing with the Securities and Exchange Commission, Gymboree said it has secured commitments for up to $308.5 million in additional financing. The Chapter 11 filing should reduce Gymboree’s debts by more than $900 million, the company added.

Gymboree now has plans to shutter some 375 stores, according to court filings. The company currently operates 1,300 stores.

“Fitch’s expectation of increasing retail defaults stems from increased discounter (including off-price and fast-fashion apparel) and online penetration, along with shifts in consumer spending toward services and experiences,” the credit rating agency said. “These factors have created a highly competitive retail environment and accelerated adverse trends in mall-based shopping.”

Just last week, Moody’s also issued an updated report saying the ranks of distressed apparel and specialty retailers are growing.

In February, among Moody’s rated retail and apparel issuers, 19 retailers had ratings of ‘Caa’ or lower. That number has now grown to 22 companies, or about 15 percent of the firm’s retail and apparel category, Moody’s reported.

Among those 22 distressed names are Gymboree — which has now filed for Chapter 11 — Sears, Nine West, Claire’s Store, David’s Bridal and Charming Charlie. In other words, many of the same retail players on Fitch’s watch list.

Moody’s lead retail analyst, Charlie O’Shea, has suggested keeping an eye on those 22 names to track which company might file for bankruptcy sooner rather than later. And there’s a load of retail debt coming due in 2018, too, he added.

“Many retailers don’t have the flexibility to do what they need to do,” O’Shea told CNBC.

 

Source: CNBC

Michael Kors to close up to 125 stores as luxury retail woes deepen

June 7, 2017 in Latest News

 

Michael Kors said Wednesday that it would close 100 to 125 stores as the luxury retailer’s slump deepens.

The luxury retail sector’s struggles are bludgeoning Michael Kors, which also acknowledged that it had delivered an underwhelming store experience for consumers.

The company had 827 full-price or outlet stores and another 133 licensed stores for a total of 960 worldwide when its fiscal year ended April 1.

The move comes amid prolonged turbulence for the luxury retail business. Coach recently announced a deal to acquire upscale retailer Kate Spade, and Jimmy Choo put itself up for sale.

Tourist spending at U.S. stores is hurting because of the strong dollar, Chinese growth has slowed, online competition is undermining physical retailers and sales at department stores are lagging.

A Michael Kors spokesperson declined to disclose a list of store closures or number of job cuts. The company is expected to open new stores in certain strategic locations.

Sales at stores open at least a year tumbled 14.1% in the company’s fourth quarter. Total revenue fell 11.2% to $1.06 billion, compared to a year earlier, despite opening 159 net new locations.

The company faces “a difficult retail environment with elevated promotional levels,” Michael Kors CEO John Idol said in a statement.

“In addition, our product and store experience did not sufficiently engage and excite consumers,” Idol said. “We acknowledge that we need to take further steps to elevate the level of fashion innovation in our accessories assortments and enhance our store experience in order to deepen consumer desire and demand for our products.”

Despite the challenges facing the luxury industry, the sector is stabilizing, Moody’s Investor Service said Wednesday in a report.

“A return to double-digit growth for the global luxury retail segment is unlikely until at least 2020 as the Chinese consumer boom has slowed, value-conscious consumers are now less likely to stand for price hikes, and competition from other sectors like travel and fine dining remains elevated,” Moody’s analyst Vincent Gusdorf said.

Michael Kors said the store closures would help save $60 million in annual costs.

Still, the company projected that its sales slump would continue, with first-quarter revenue and same-store sales each falling in the “high-single-digit range.”

The retailer swung from a $177 million profit in last year’s fourth quarter to a $26.8 million loss in the latest period. For the full year it recorded net income of $552.5 million, down from $839.1 million a year earlier.

Michael Kors stock fell 8% to $33.38 shortly after the opening bell.

 

Source: USA TODAY

Sears is quietly closing more stores than it said it would — here’s the list

May 15, 2017 in Latest News

Sears Holdings announced in January that it would shut down 150 stores this year, with most locations closing by April. Now the company is closing even more stores. Sears, which owns both Sears and Kmart stores, has been notifying local media of the additional closures over the last several weeks. Most of the stores on the new list will start liquidation sales in April and close in July, though some will shut down in August. Over the last month, the list of additional closures has grown from about five stores to more than two dozen. Seritage Growth Properties, a company that owns more than 235 Sears and Kmart stores, is behind several of the closures, as Business Insider reported Sunday. Sears CEO Eddie Lampert is chairman of Seritage Growth Properties.

 

We compiled a list of the additional closures that the company has revealed so far, and will update this list as we learn of more locations that will shut down.

Kmart

  • 803 Martin Street S., Pell City, Alabama
  • 2222 E. Lincoln Ave., Anaheim, California
  • 1460 W. 49th St., Hialeah, Florida
  • 424 Dairy Road, Kahului, Hawaii
  • 33400 W. Seven Mile Road, Livonia, Michigan
  • 2660 Hylan Blvd., Staten Island, New York
  • 950 Ridge Road, Webster, New York
  • 4480 Indian Ripple Road, Dayton, Ohio
  • 1837 Street Road, Bensalem, Pennsylvania
  • 16881 Conneaut Lake Road, Meadville, Pennsylvania
  • 1 Millbrook Plaza Lane, Mill Hall, Pennsylvania
  • 300 Lincoln Ave, East Stroudsburg, Pennsylvania
  • 176 W Street Road, Feasterville, Pennsylvania
  • 1011 Scranton Carbondale Hwy., Scranton, Pennsylvania
  • 1801 Hydraulic Rd, Charlottesville, Virginia
  • 494 Elden St., Herndon, Virginia
  • 17911 Pacific Ave., S. Spanaway, Washington

Sears

  • 273 Madonna Road, San Luis Obispo, California
  • Westfield UTC, 4575 La Jolla Village Dr, San Diego, California
  • Southbay Pavilion, 20700 S. Avalon Blvd., Carson, California
  • 290 Providence Highway, Dedham, Massachusetts
  • Aventura Mall, 19505 Biscayne Blvd., Miami, Florida
  • 4250 Cerrillos Road, Santa Fe, New Mexico
  • 3199 N White Sands Blvd., Alamogordo, New Mexico
  • Monroe Crossing Mall, 2115 W Roosevelt Blvd., Monroe, North Carolina
  • Northwoods Mall, 7801 Rivers Ave., North Charleston, South Carolina
  • Valley View Mall, 13131 Preston Road, Dallas, Texas
  • Provo Towne Centre, 1200 Towne Centre Blvd., Provo, Utah

Sears now has fewer than 1,500 stores, down from 2,073 five years ago.

The company is under pressure from years of plunging sales and last month lost its second chief financial officer in six months, just as it began talks with lenders over a looming debt payment from a $500 million loan facility that’s maturing in July.

In a rare interview last week, Lampert spoke about the retailer’s troubles and said “the reality is better than the perception.”

He told the Chicago Tribune that Sears is “fighting like hell” to stay afloat but that unfair media coverage was making it difficult for the company to turn business around.

Regarding the potential for a Sears bankruptcy, he said, “We have as much time as our vendors and our lenders and our shareholders are willing to give us. We’re trying to be proactive with our vendors, we’re trying to be proactive with our members, with our employees, associates, etc., to explain that the reality is a lot better than the perception. The reality needs to be better than it is for us to really demonstrate to people that the transition is starting to take hold.”

Source: Business Insider

Landlords Are Re-Leasing Sluggish Department Store Spaces At Four Times The Rent

May 11, 2017 in Latest News

Mall owners are making the best out of a bad situation. The seismic shift in consumer preferences has rocked the retail industry to its core, resulting in more than 36M SF of department store space that will be vacated this year. But department stores’ loss is mall owners’ gain. Landlords are profiting off the closures by bringing in entertainment, fast-fashion, and food and beverage tenants to fill the space — and they are getting quadruple the rental income.

In addition to finding more experiential (and thus more appealing) tenants to take the place of department stores like Sears, Kmart and Macy’s — which will close a collective 300-plus stores by the end of the year — mall owners are charging replacement tenants three to four times the amount of rent they were receiving from department stores, according to a recent JLL report.

“The way it works when developers build a center is department store anchors are a must-have,” JLL director of retail research James Cook said, adding that these anchors tend to pay cheaper rents because they are in such short supply. “Rent is low compared to what a new retailer will pay.”

Cashing In

Such is the case for Seritage Growth Properties. The REIT, which owns 266 properties formerly held by Sears Holdings, is monetizing vacant boxes by redeveloping and re-leasing the spaces to new tenants. On average the REIT is receiving 4.4 times the previous rental rate from these new occupiers. Where Sears Holdings was paying $4.40/SF, in-place third-party tenants are paying $12.74/SF and soon-to-occupy tenants will be paying an average of $18.55/SF, JLL reports. As of March, 57% of Seritage’s portfolio was leased by apparel, restaurant and entertainment tenants.

Retail trust PREIT had three Sears in its mall portfolio close, and has leased all of the vacated space, close to 400K SF. CEO Joe Coradino said the tenants that are moving in, like the Dick’s Sporting Goods and Field & Stream that replaced the Sears in Capital City Mall in Pennsylvania, will pay more in rent and drive more interest than Sears.

General Growth Properties is also unlocking value in locations vacated by department stores. In 46 of the REIT’s 127 properties, about one-quarter of the vacancies (23%) were replaced with food and dining tenants, 18% became department stores and 14% were entertainment venues.

“We’re seeing a shift in consumer tastes. The things that department stores have traditionally sold people, now the new generation, especially Millennials, are more interested in buying those things at discounters like Ross or TJ Maxx,” Cook said.

Source:  BISNOW

How Amazon, Walmart And Whole Foods Are Losing To Mom-And-Pop Grocers

May 1, 2017 in Latest News

Once upon a time, mom-and-pop grocers could succeed with the basics: standard product offerings, a good location and decent customer service. But as leading grocery chains and e-retailers like Whole Foods, Walmart and Amazon continue to innovate, they are rendering many independent grocery stores obsolete. To survive, these local players within small markets are stepping up their game to compete.

“For truly independent grocers, there’s so much great competition from existing grocers,” Weitzman executive managing director Bob Young said. “Small format grocers used to be able to offer better levels of service.”

Weitzman leases more than 44M SF and manages more than 22M SF of retail space throughout Texas with a focus on grocery-anchored centers. Across that space, Young has seen many chains offer new services aimed at customer convenience and many small operators struggle to keep up.

Grocery shoppers have never had such an abundance of options from which to fill their pantries and refrigerators. Busy consumers can order groceries online from e-commerce retailers like Amazon Fresh and Thrive Market, or opt for delivery from local grocers using Instacart or Shipt. Then there are the big-box chains like Walmart that have a pool of shipping and distribution resources, usually resulting in cheaper products.

This shift in customer preference toward online convenience is a costly expense that forces independent grocers to charge higher prices than the big chains, decreaing their appeal and ability to compete.

Competing With A Niche Concept 

It is for this reason that local staples like Ann Arbor, Michigan-based Zingerman’s are carving out a space for themselves in the market.

“Strengths lead to weaknesses,” Zingerman’s Community of Businesses co-founding partner Ari Weinzweig said. “Every grocery store now has high-quality olive oils and goat cheese, and when that’s more widely available, [we’re forced to] compete with everyone.”

When Zingerman’s first opened its doors as a corner grocery in 1982, many of its specialty foods were novel. Since then, Zingerman’s has turned into a community of businesses that includes a creamery, a bakery, a deli, a coffee company and several other concept locations throughout Ann Arbor.

“If a grocer goes in a neighborhood where large grocers already are, they have to have a merchandising niche that’s specific to their area, and then they must have the wherewithal to operate the store well,” Weitzman’s Young said.

For example, Young has seen concepts linked to a cultural group, such as an Asian market with fresh fish and imported goods, succeed in a trade area matching its demographics.

The Definition Of Great Shopping

Sevananda Natural Foods Market general manager Ahzjah Simons said that though her Atlanta store competes with chains like Whole Foods and Sprouts, they also have somewhat of a symbiotic relationship.

“Now that some of the major stores carry some specialty items we’ve been carrying for years, it’s more competitive,” she said. “But we sometimes tell customers to look at the chains for things we don’t have, and Whole Foods does the same for us.”

Sevananda and Zingerman’s focus on things that set them apart.

“If your definition of great [grocery shopping] means free delivery, then there’s Amazon for you,” Weinzweig said. “If your definition of great [grocery shopping] is having a conversation with a store owner, tasting the product and learning where it came from, that’s us.”

A renewed interest in healthy eating has simultaneously revitalized interest in many small natural grocers, spurring the creation of more healthy options from national grocers.

A Sense Of Community

Both Sevananda and Zingerman’s have worked hard to attain something most big grocers lack: a sense of community. Sevananda’s distributes a magazine for co-op owners and hosts public programming and workshops for the community, while Zingerman’s hosts events such as food tours and baking classes through sister businesses for local residents.

Despite troubling retail trends, Sevananda is on the upswing. The consumer-owned store has been around for more than 40 years and has about 3,800 member owners. In addition to other perks, a board can vote to pay owners returns.

“Over the last five or six years, we weren’t profitable and did not pay our owners,” Simons said. “We’ll be back in a position do to that soon. Sales have returned to where they were and are starting to surpass that.”

Source: BISNOW

PetSmart To Acquire Chewy

April 24, 2017 in Latest News

Looks like online pet product retailer Chewy.com isn’t headed for an IPO after all.

Phoenix-based PetSmart Inc. announced last Tuesday it struck a deal to acquire the fast-growing Dania Beach company. Terms of the transaction were not disclosed. The acquisition is subject to regulatory approval and is expected to close at the end of PetSmart’s second fiscal quarter.

Chewy employs more than 1,000 people in South Florida alone and over 5,000 total nationwide. Revenues were projected to explode past the billion-dollar mark this year as the company worked to open three new fulfillment centers in the next 18 months, bringing the company’s number of warehouses to six.

Founded in 2011, Chewy.com earned a gleaming reputation for offering a variety of perks to its more than 3 million customers. The company was rumored to be going public in 2017.

“Since we started Chewy, we have been dedicated to understanding and satisfying the evolving needs of our customers to deliver the highest quality pet products and customer service,” said Ryan Cohen, co- founder and CEO of Chewy. “Combining our strong e-commerce expertise with PetSmart’s best-in-class infrastructure, footprint and breadth of offerings including services will help us ‘wow’ our customers even more.”

Cohen will stay on as CEO of Chewy, which PetSmart said will operate “largely as an independent subsidiary.”

Source:  SFBJ