PetSmart stands as the largest specialty pet retailer in North America, operating stores across the United States, Canada, and Puerto Rico. The company provides pet food, supplies, and accessories alongside services including grooming, training, boarding, and veterinary care through in-store Banfield Pet Hospital clinics.
Founded in Phoenix, Arizona, PetSmart grew from a discount pet food warehouse into a comprehensive pet care destination. The retailer partners with nearly 4,000 animal welfare organizations through PetSmart Charities to facilitate in-store pet adoptions. BC Partners acquired the company in 2015 for $8.7 billion, taking it private after more than two decades on the NASDAQ stock exchange.
PetSmart History
PetSmart Co-founders
PetSmart Competitors
The pet retail industry features strong competition from both brick-and-mortar chains and online retailers. PetSmart competes for market share against specialty pet stores, mass merchandisers, and e-commerce platforms that have expanded their pet product offerings. Major competitors like Amazon and Chewy dominate online sales while Petco remains the primary physical retail rival.
| Competitor | Type | Est. Revenue | Stores |
|---|---|---|---|
| Petco | Specialty Retail | $6.3B | 1,550+ |
| Chewy | E-commerce | $11.9B | Online Only |
| Amazon (Pet Category) | E-commerce | $15B+ | Online Only |
| Walmart (Pet Category) | Mass Merchandiser | $8B+ | 4,700+ |
| Target (Pet Category) | Mass Merchandiser | $3B+ | 1,950+ |
| Tractor Supply | Farm/Pet Retail | $2.5B+ | 2,200+ |
| Pet Supplies Plus | Specialty Retail | $1.5B+ | 700+ |
| Pet Valu | Specialty Retail | $900M+ | 700+ |
| Hollywood Feed | Specialty Retail | $300M+ | 150+ |
| Woof Gang Bakery | Specialty Retail | $200M+ | 200+ |
PetSmart Revenue
PetSmart generates approximately $10 billion in annual revenue, making it the largest pet specialty retailer by sales in the United States. Revenue comes primarily from pet food and supplies sold through physical stores, with growing contributions from e-commerce and in-store services like grooming and boarding.
PetSmart Marketcap
As a privately held company since 2015, PetSmart does not have a public market capitalization. BC Partners acquired the company for $8.7 billion in a leveraged buyout. The Chewy acquisition in 2017 and subsequent IPO provided significant value, though PetSmart’s debt load reached approximately $8.6 billion by 2019.
PetSmart Acquisitions
PetSmart pursued strategic acquisitions to expand services and strengthen market position. The company acquired PetsHotels Plus in 2000, adding pet boarding capabilities to complement retail operations. This acquisition enabled PetSmart to offer overnight stays for dogs and cats with amenities including 24-hour supervision and climate-controlled accommodations.
The partnership with Banfield Pet Hospitals, established in 1994, brought veterinary services into PetSmart stores. While technically a partnership rather than full acquisition, PetSmart held ownership stakes in Banfield’s parent company Medical Management International before divesting in 2015.
The Chewy acquisition in May 2017 marked PetSmart’s largest deal at $3.35 billion. This purchase represented the biggest e-commerce acquisition at the time, surpassing Walmart’s $3.3 billion Jet.com deal. Chewy operated as a largely independent subsidiary, maintaining its own branding and operations while providing PetSmart access to online pet retail expertise.
The PetSmart and Chewy relationship evolved significantly after the acquisition. Chewy went public in June 2019, and by 2020 the companies split into independently operated businesses. Both remain under BC Partners ownership, though they function as separate entities competing in overlapping markets. PetSmart used proceeds from the Chewy IPO to reduce its substantial debt burden accumulated from the 2015 leveraged buyout and subsequent Chewy purchase.
International expansion attempts included acquiring Pet City in the UK in 1996. The overpriced purchase proved unsuccessful financially and operationally. PetSmart sold the UK chain to Pets at Home in late 1999 at a substantial loss, refocusing on North American operations.
FAQs
Who founded PetSmart and when?
Jim and Janice Dougherty founded PetSmart on August 11, 1986, in Phoenix, Arizona. The first two stores opened in 1987 under the name PetFood Warehouse.
How many stores does PetSmart operate?
PetSmart operates approximately 1,660 to 1,700 stores across the United States, Canada, and Puerto Rico, plus over 200 in-store PetsHotel boarding facilities.
Does PetSmart own Chewy?
PetSmart no longer owns Chewy. After acquiring Chewy for $3.35 billion in 2017, the companies split in 2020. Both operate independently under BC Partners ownership.
Is PetSmart publicly traded?
PetSmart is privately held since 2015 when BC Partners completed an $8.7 billion leveraged buyout. The company traded on NASDAQ from 1993 until going private.
How many pets has PetSmart helped adopt?
PetSmart Charities has facilitated over 11 million pet adoptions since 1994 through in-store adoption centers and partnerships with nearly 4,000 animal welfare organizations.