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PetSmart


PetSmart, Inc. is a privately held American chain of pet superstores that retails pet food, supplies, accessories, and small animals, while also providing services such as grooming, training, boarding, and veterinary care through partnerships like Banfield Pet Hospital.
Headquartered in Phoenix, Arizona, the company was incorporated in 1986 as The Pet Food Warehouse and opened its first stores in 1987, expanding to over 1,660 locations across the United States and Canada by the 2020s.
As one of the largest pet retailers in North America, PetSmart holds significant market share in the pet stores industry and operates under private equity ownership led by BC Partners since 2015, with additional investment from Apollo Global Management. The company has achieved prominence through its PetSmart Charities, which has granted over $500 million to animal welfare organizations since 1994, positioning it as a leading funder in the sector. However, PetSmart has encountered controversies, including allegations of animal mistreatment during grooming services leading to pet deaths and lawsuits over predatory training repayment agreements for groomers.

History

Founding and early expansion (1986–1993)

PetSmart was founded in August 1986 by Jim Dougherty, a former executive at , and his wife Janice Dougherty, who incorporated the company as , initially operating under the name The Pet Food Warehouse. The venture secured $1 million in startup capital from investors including Phillips-Van Heusen Corporation, aiming to introduce large-format, warehouse-style stores focused on bulk and supplies to capitalize on the growing demand for affordable pet products amid rising pet ownership in the U.S. The first two stores opened in August 1987 in the metropolitan area, each featuring expansive layouts to stock high volumes of dry at discounted prices compared to traditional pet shops. By 1988, the company had expanded to seven stores across , , and , achieving annual sales of nearly $16 million but operating at a loss due to aggressive growth and operational scaling challenges. In 1989, the Doughertys rebranded the chain as PETsMART to emphasize a broader "smart" shopping experience beyond mere warehousing, while introducing the first full-service grooming salon and dedicated sections for birds, fish, and small pets in select locations. That year, Samuel J. Parker joined as chairman amid internal restructuring, leading to the Doughertys' departure from day-to-day leadership; five additional stores opened, bringing the total to 12, though sales stagnated at $15.9 million with a $1.8 million net loss reflecting ongoing profitability hurdles. Expansion accelerated in the early as stores standardized at around 25,000 square feet stocking approximately 7,500 SKUs, reaching 29 locations by 1990 with sales climbing to $29.3 million. By 1991, the chain operated 48 stores and posted its first annual profit of $400,000 on $106.6 million in revenue, bolstered by refined merchandising and regional . In 1992, PETsMART opened its 50th store, launched the first permanent in-store centers in partnership with local organizations, and introduced clinics to diversify beyond . The year ended with sales steady at approximately $106.6 million and of $400,000, setting the stage for further scaling. By mid-1993, with 71 stores in 13 states, the company pursued an on (ticker: PETM) in July, raising $125 million to fuel growth; it opened 41 new stores that year, acquired Phoenix-based & Supply adding five locations, and targeted 106 stores across 20 states by year-end, driving sales to $187.9 million.

Public offering and national growth (1993–2005)

PetSmart completed its on July 23, 1993, listing shares on the under the ticker symbol PETM at an initial price of $18 per share, with the stock closing at $25 on the first trading day amid strong demand for pet retail investments. The IPO enabled the company to access public capital markets, shifting from reliance on private investors to fund operations and facilitating accelerated domestic expansion through new store openings and selective acquisitions. By 1994, PetSmart had grown to 100 stores across the , leveraging a model of vacant big-box grocery spaces into warehouse-style pet superstores to offer assortments of , supplies, and services at competitive prices. The company pursued national penetration by targeting underserved markets, acquiring regional chains such as PetZazz to consolidate presence, and introducing in-store services like grooming and veterinary partnerships to differentiate from traditional outlets and general retailers. This period marked a shift toward category dominance, capitalizing on rising U.S. ownership and spending, which reached $8.5 billion annually on and supplies by mid-1993. Through the late 1990s and early 2000s, expansion intensified, with store counts surpassing 500 by 1998 and extending into Canada in 1996 while prioritizing U.S. growth; revenues from ancillary services like grooming and training increased nearly 21% from fiscal 1999 to 2000, reflecting operational maturation. By fiscal 2004, PetSmart operated over 725 stores in the United States and Canada, achieving $3.4 billion in total sales through consistent unit economics and market share gains against competitors including mass merchants. This trajectory positioned the retailer as a leading specialty chain, though it faced pressures from slowing same-store sales growth amid economic cycles and intensifying competition.

Strategic challenges and rebranding (2005–2014)

In 2005, PetSmart underwent a significant effort, officially changing its name from PETsMART to PetSmart in August to shift emphasis from a discount "mart" perception to one of specialized expertise and comprehensive pet care services, including grooming, , and veterinary partnerships. This repositioning targeted "pet parents" who viewed animals as family members, aiming to differentiate the retailer from mass-market competitors like by highlighting value-added services amid intensifying price competition in basic pet supplies. The rebranding coincided with operational tweaks, such as enhanced in-store service integrations, to bolster customer loyalty and counter commoditization of core products like . Throughout the period, PetSmart faced strategic pressures from its primary rival, , which was acquired by in 2006, enabling more aggressive pricing and expansion tactics that eroded in select regions. Comparable store sales growth, while positive, moderated from 4.2% in fiscal 2005 amid broader retail sector headwinds, prompting investments in efficiencies and private-label brands to improve margins squeezed by rising input costs and promotional demands. The posed additional challenges, as discretionary pet spending faced scrutiny despite the industry's overall resilience—households increased pet ownership for companionship during economic stress, sustaining PetSmart's revenue trajectory but highlighting vulnerabilities in non-essential services like boarding. Net sales rose steadily from $3.76 billion in fiscal 2005 to over $7 billion by fiscal 2014, supported by annual store openings averaging 80-100 locations, yet internal issues such as warehouse inefficiencies and labor constraints occasionally hampered scalability. Leadership transitions underscored these tensions; in 2013, Chairman and CEO stepped down amid board changes, with executive realignments in eliminating the COO role to streamline operations and refocus on capabilities amid emerging threats. These moves reflected a broader toward and digital integration to sustain growth in a maturing market, where mass retailers captured low-end volume and specialty competitors vied for premium segments. By , activist investor pressure for strategic alternatives highlighted the need for accelerated to address decelerating comparable sales and competitive intensification.

Private equity acquisition and operational shifts (2014–present)

In December 2014, PetSmart entered into a definitive agreement to be acquired by a consortium led by BC Partners for $8.7 billion, or $83 per share in cash, marking one of the largest leveraged buyouts of a retail company at the time. The transaction, which took PetSmart private and delisted it from public trading, closed on March 11, 2015, with shareholders receiving the agreed price. Immediately following the closure, PetSmart underwent leadership transitions, including the departure of president and CEO David Lenhardt, replaced by Michael Massey as CEO, alongside additions to the senior team focused on customer experience, merchandise planning, and strategy. Post-privatization, PetSmart shifted toward enhancing its digital capabilities and presence amid competition. In April 2017, it announced the $3.35 billion acquisition of , the leading online pet retailer, completed in May 2017 and representing the largest deal to date, aimed at integrating physical stores with online sales. This move supported revenue growth, with annual sales rising from $7.1 billion in 2014 to $10.3 billion by 2023 and EBITDA expanding from $1 billion to approximately $1.6 billion, driven by investments in store expansions—reaching the 1,600th North American location in 2017—and operational efficiencies. The company distributed an $800 million to investors in early 2016, reflecting early cash flow generation from the leveraged structure. Subsequent leadership evolved with Massey departing in 2017 amid strategic reviews, followed by interim arrangements and the appointment of J.K. Symancyk as CEO in June 2018. Chewy's 2019 allowed to realize gains while PetSmart retained operational focus on brick-and-mortar services like grooming and veterinary partnerships, without mass store closures. In July 2023, made a strategic minority in PetSmart, with maintaining majority control and board oversight, supporting further revenue growth exceeding 40% since the acquisition. The high-debt structure from the buyout drew scrutiny, including a 2021 inquiry from U.S. Senator regarding workplace conditions and pet incidents, though financial metrics indicated sustained performance in the pet retail sector.

Business Model and Operations

Retail format and store network

PetSmart operates a network of over 1,660 specialty retail stores across , primarily in the United States and . As of late 2024, the company maintained 1,665 locations, with presence in all 50 U.S. states and . The store network focuses on urban and suburban areas, often situated in strip malls or standalone buildings to accommodate drive-up traffic and parking for pet owners. The retail format emphasizes a large-format big-box , with prototypical stores ranging from 16,000 to over 25,000 square feet. Interiors feature wide aisles organized by pet type and product category, including sections for food, aquatics, birds, reptiles, and small animals. Additional areas include grooming salons, veterinary services via partnerships, and adoption centers for partnering shelters. Live pet sales are limited to fish, , reptiles, and small mammals, with dogs and cats available only through adoption events. Store designs incorporate functional elements such as bathing stations, meet-and-greet zones for adoptions, and merchandise displays optimized for high-volume sales. PetSmart has tested smaller-format concepts, such as Pet Spa locations averaging 5,000 to 8,000 square feet focused on services, but the majority of the network adheres to the expansive prototype supporting comprehensive one-stop shopping. This structure enables efficient inventory management and fulfillment, including in-store pickup for online orders.

Product assortment and supply chain

PetSmart's product assortment encompasses supplies for , , , birds, reptiles, and small animals, including food, treats, toys, bedding, grooming products, collars, leashes, aquariums, enclosures, and live small pets such as , guinea pigs, mice, rats, and gerbils. Specific categories feature supplies like replacers and pads, litter boxes, dog flea and tick treatments, and vitamins and supplements across pet types. The retailer stocks both national brands and private-label items, with inventory managed to support in-stock availability for most products, though some items may vary by location or require shipping. PetSmart's supply chain relies on a network of vendors and suppliers adhering to a Supplier Code of Conduct that mandates compliance with labor, environmental, and ethical standards, including social responsibility in global operations. Suppliers utilize Electronic Data Interchange (EDI) for transactions and must meet onboarding and compliance requirements to support inventory replenishment. The company operates distribution centers to serve its approximately 1,700 stores and e-commerce fulfillment, augmented by third-party logistics providers for shipping and marketplace integrations. Since 2019, PetSmart has employed RELEX Solutions for automated demand planning and replenishment across stores, distribution centers, and online channels, later expanding to markdown optimization for perishable and seasonal items. In 2024, it integrated federal Freight Logistics Optimization Works (FLOW) data to enhance efficiencies, and by January 2025, deployed GreyOrange's gStore platform for 3D inventory tracking, SKU management, and faster order fulfillment in stores. These technologies aim to improve location accuracy and operational speed amid varying product availability.

In-store services and partnerships

PetSmart operates in-store grooming salons staffed by trained pet stylists who provide services including baths, haircuts, nail trims, ear cleanings, and teeth brushing for dogs and cats, available in most of its locations with options for appointments or walk-ins. These salons emphasize safety protocols and offer promotional discounts, such as $20 off first-time services, to encourage customer utilization. Dog training programs, led by certified trainers, include group classes for puppies and adult dogs focusing on obedience, socialization, leash manners, and behavior correction, with session packages typically spanning 6 weeks and virtual options available. Training is conducted in designated in-store areas, with discounts like $60 off multi-class enrollments periodically promoted to expand access. The PetsHotel boarding service offers overnight accommodations for dogs and cats in climate-controlled suites, complete with supervised playtime, treats, and enrichment activities, while Doggie Day Camp provides daytime socialization and exercise for dogs under the care of certified counselors. These services, available in select stores, include amenities like webcams for owners and require pre-screening for pet health and temperament to ensure safety. Veterinary care is provided through co-located, independently operated clinics in many stores, primarily via a longstanding partnership with , which PetSmart helped establish in 1994 through collaboration with Medical Management International. Banfield operates over 1,000 hospitals, with more than half integrated into PetSmart locations, offering preventive wellness plans, vaccinations, diagnostics, and surgery alongside other independent providers. PetSmart facilitates pet adoptions in nearly all of its 1,500+ U.S. and Canadian stores through partnerships coordinated by with approximately 4,000 shelters and rescue organizations, enabling on-site events where adoptable dogs, cats, and other animals meet potential owners. This network has supported over 8.5 million adoptions since inception, emphasizing spay/neuter requirements and post-adoption resources to reduce shelter returns.

Digital Strategy and E-Commerce

Online platform development

PetSmart launched its initial platform, PETsMART.com, in June through a involving the company, idealab! Partners, and Global Retail Partners, marking an early entry into online pet retail amid competition from ventures like . This site focused on sales of pet supplies, leveraging the dot-com boom to expand beyond physical stores. In 2014, PetSmart acquired Pet360, an online pet specialty retailer, for $130 million plus potential performance-based payments, integrating its digital assets to enhance content, community features, and capabilities. The 2017 acquisition of .com for approximately $3 billion further accelerated online growth by incorporating a high-performing engine, though Chewy operated as a distinct focused on subscription models and rapid delivery. By 2016, PetSmart selected the Demandware Commerce Cloud (now Commerce Cloud) as its global platform to unify customer data across channels, enabling personalized shopping and features like buy-online-pickup-in-store. That year, the company relaunched PetSmart.com with streamlined ordering and introduced same-day delivery in select markets via partnerships like Deliv, expanding to areas including by mid-November. In September 2021, PetSmart debuted The Pharmacy at PetSmart, an platform for prescription medications and supplements, requiring veterinary to comply with regulations while broadening offerings. Recent advancements include adopting composable commerce architectures for modular and AI-driven , as implemented under Greg Fancher, who joined in 2023 to oversee and fraud detection via . In January 2025, deployment of GreyOrange's gStore across nearly 1,700 stores improved visibility, supporting faster fulfillment from in-store stock. By 2025, store-based shipping accounted for 90% of orders, reflecting a shift from centralized distribution to localized micro-fulfillment.

Omnichannel integration and customer experience

PetSmart's omnichannel strategy emphasizes seamless integration across digital and physical channels to enhance customer convenience and loyalty. In 2016, the company adopted the Demandware Commerce Cloud platform to unify the shopping experience, enabling customers to browse, purchase, and engage through preferred methods including online, mobile, and in-store options. This infrastructure supports features such as real-time inventory visibility and cross-channel order fulfillment, reducing friction in pet supply procurement. A of this is the Buy Online, Pick Up In-Store () service, offered free on select online orders, where customers select items via the website or app and retrieve them at local stores, often within hours. PetSmart complements BOPIS with curbside pickup, introduced prominently during the period in 2020, allowing contactless trunk delivery to maintain safety while fulfilling demand. These options have optimized fulfillment efficiency, with -powered search enhancements providing inventory-aware results to minimize stockouts and improve BOPIS accuracy. The Treats Rewards , relaunched in 2024 with over 70 million members, further bridges channels by allowing points accumulation and redemption uniformly across in-store purchases, online orders, app transactions, and services like grooming. AI-driven within the program delivers tailored recommendations and exclusive perks based on purchase history and data, fostering repeat engagement and deepening customer relationships. The PetSmart integrates these elements, enabling users to track rewards, book appointments, and access personalized deals, while dashboards monitor experience metrics to identify and replicate successful interactions. Under Chief Digital and Technology Officer Greg Fancher, appointed in recent years, PetSmart has accelerated data-informed initiatives to refine touchpoints, including Salesforce-powered tools that prioritize empirical feedback over assumptions. This approach has contributed to measurable gains in , though challenges persist in balancing with data privacy amid competitive pressures from pure-play e-tailers.

Leadership and Governance

Executive team evolution

PetSmart was founded in 1986 by Jim and Janice Dougherty as Pet Food Warehouse, with the couple serving as initial leaders until early 1989, when they were removed amid operational losses totaling $1.8 million. Samuel J. Parker joined that year as president and , assuming the chairman role by 1993 and guiding the company through its rebranding to PetSmart, national expansion, and on in 1993. Parker's tenure emphasized warehouse-style evolution into a broader pet superstore model, though he retired as CEO in 1995 while retaining the chairmanship. Mark Hansen succeeded as CEO in 1995 but departed in 1997 following a $34.4 million net loss attributed to acquisition costs and strategic missteps. briefly returned as interim CEO before assumed the role in 1998, becoming chairman in 1999 upon full retirement. , who held leadership through a period of steady growth and service diversification, transitioned to executive chairman in 2009 as Robert F. Moran—previously president of North American stores since 1999—took over as CEO. Moran's four-year tenure focused on operational efficiencies until his retirement in 2013. David K. Lenhardt, an internal executive since 2000, became CEO in June 2013 and president in 2014, leading the strategic review that culminated in the 2015 privatization by for $8.7 billion. Lenhardt stepped down upon deal closure in March 2015, receiving a $24 million exit package, with Michael J. Massey appointed as the new CEO to navigate the era. Massey's leadership emphasized post-acquisition integration but ended abruptly with his resignation in August 2017. BC Partners managing partner Raymond S. Svider served as executive chairman during the interim period, overseeing a nine-month search that resulted in J.K. Symancyk's appointment as CEO in June 2018. Symancyk, drawing from prior roles at and other retailers, prioritized digital and strategies amid competitive pressures from rivals. He stepped down effective September 30, 2024, to pursue other opportunities, with Ken Hicks—former CEO—named president and CEO starting October 31, 2024, to address ongoing retail challenges. This succession reflects heightened executive turnover under private ownership, contrasting the relative stability of the phase under Francis and Moran.

Current leadership under private equity

Since its acquisition in March 2015 by a consortium led by BC Partners for approximately $8.7 billion, PetSmart has operated as a private company under private equity oversight, with BC Partners retaining majority ownership and control of the board of directors. In July 2023, Apollo Global Management acquired a minority equity stake, but BC Partners maintained its position as the controlling shareholder and board majority. This structure has emphasized revenue growth, with company revenues increasing over 40% during BC Partners' tenure through investments in operations and omnichannel capabilities. The board is chaired by Raymond Svider, a partner and chairman of ' management committee, who assumed the non-executive chairman role upon the 2015 acquisition and continues to guide strategic direction under priorities such as cost optimization and expansion. ' influence extends to executive appointments, prioritizing leaders with retail turnaround experience to navigate competitive pressures in the pet sector. Ken Hicks serves as president and , appointed on October 23, 2024, and effective October 31, 2024, succeeding J.K. Symancyk who departed on September 30, 2024, after over six years in the role. Hicks brings nearly 40 years of retail leadership, including as CEO of from 2018 to 2023, where he oversaw expansion and digital enhancements, and previously at , Inc., focusing on and strategies. A West Point graduate with an MBA from , Hicks is tasked with driving PetSmart's next growth phase amid private equity-backed operational shifts. Key supporting executives include Alan Schnaid, executive vice president and chief financial officer since 2017, who served as interim CEO during the 2024 transition and has managed financial restructuring post-acquisition, drawing from over 20 years in hospitality finance at Starwood Hotels & Resorts. Lacey Bundy, executive vice president, chief legal officer, and secretary since 2018, oversees governance and compliance, with prior experience at Express, Inc., ensuring alignment with private equity demands for risk mitigation and regulatory adherence. This leadership configuration reflects private equity's emphasis on experienced operators to enhance profitability and market positioning in a consolidating industry.

Financial Performance

Revenue growth and market position

PetSmart holds the largest in the U.S. pet stores industry, accounting for nearly 25% of sector revenue in 2023, ahead of competitors like . The company operates approximately 1,669 stores nationwide, making it the most-visited pet retail chain by foot traffic, with 62.1% of visits to the top two chains (PetSmart and ) occurring at its locations from January to May 2024. This dominance stems from its extensive brick-and-mortar network and , though it faces intensifying competition from online pure-plays like and general retailers such as and , which captured smaller but growing shares of pet supply searches in 2025. Annual revenue reached $10 billion in , positioning PetSmart as the revenue leader in a pet stores industry projected to generate $33.2 billion in , growing at a compound annual rate of 1.3% over the prior five years. Since its acquisition by in 2015, the company has expanded revenues by more than 40%, driven by store optimizations, service enhancements, and modest integration, though exact pre- and post-acquisition figures remain limited due to its private status. U.S. retail sales grew 1% in 2024 compared to , reaching $7.74 billion, but full-year performance has softened amid broader economic pressures on discretionary pet spending. Recent indicators reveal decelerating growth, with comparable store sales declining 4.7% year-to-date through October 27, 2024, and a 4.4% drop in the latest quarter, reflecting challenges in maintaining momentum against rivals and inflationary headwinds in the pet sector. Despite this, PetSmart's scale and efforts sustain its top position, though sustained revenue expansion will depend on countering online erosion and stabilizing in-store traffic.

Ownership transitions and debt management

In March 2015, PetSmart transitioned from public ownership to control through a led by a consortium of investors advised by , acquiring the company for approximately $8.7 billion at $83 per share. This deal, announced in December 2014, marked the largest in history at the time and saddled PetSmart with substantial to finance the transaction. Following the acquisition, PetSmart's owners extracted value early, distributing about $800 million in dividends to investors roughly ten months after the deal closed in , funded partly by additional borrowings amid the company's operational cash flows. By 2018, however, the heavy load—exacerbated by the 2017 acquisition of for $3.35 billion—contributed to financial strain, with PetSmart's bonds trading at yields exceeding 20%, signaling market concerns over its ability to service obligations in a challenging environment. retained majority ownership post-buyout, recapitalizing the business in subsequent years, including a 2019 transaction that separated via its IPO while injecting $1.3 billion in and $4.65 billion in new into PetSmart. Ownership evolved further in July 2023 when Apollo Global Management made a strategic equity investment in PetSmart, bolstering its capital structure while BC Partners continued as the primary owner. Debt management remained a focal point, culminating in a major refinancing in August 2025, where PetSmart priced $4.7 billion in high-yield notes and secured a $1.7 billion leveraged loan, alongside $3 billion in other secured and unsecured debt, to retire $5.65 billion in maturing obligations, including a 2028 term loan and bonds due by 2029. The refinancing incorporated enhanced investor protections and involved pledging shares of Chewy Class B common stock as collateral, with PetSmart concurrently distributing its remaining Chewy shares to its direct parent company to streamline its balance sheet.

Philanthropy and Community Impact

Pet adoption initiatives and charities

PetSmart Charities, established in 1994 as a non-profit arm of PetSmart, operates in-store adoption centers across its retail locations in partnership with local animal shelters and rescue organizations, facilitating direct adoptions of dogs, cats, and other pets. These centers, staffed by volunteers from partnering groups, have enabled over 11 million pets to find permanent homes in the United States, Canada, and Puerto Rico since inception, with the milestone of the 11 millionth adoption reached in October 2024 during the organization's 30th anniversary. The initiative emphasizes accessibility by hosting regular adoption events in high-traffic store environments, where potential adopters can interact with animals under supervised conditions before completing paperwork through the partnering . National Adoption Weekends, conducted four times annually, amplify these efforts; for instance, a single event in March 2020 resulted in a record 32,985 nationwide, surpassing prior benchmarks and contributing to cumulative totals exceeding 9 million at that time. On average, these weekends yield over 17,000 each, drawing from data aggregated across PetSmart's network of stores. The program prioritizes animals, with events like the October 2025 National Adoption Week partnering with sponsors such as to waive fees and promote amid annual intakes of approximately 5.8 million animals. Beyond adoptions, PetSmart Charities allocates grants to animal welfare organizations, positioning itself as North America's leading funder in the sector. In March 2025, it distributed $5 million to 150 U.S.-based groups for programs addressing adoption preparation, veterinary access, and pet hunger relief, with 100% of public donations directed to such causes without administrative retention. A 2023 commitment pledged $100 million over five years to expand low-cost veterinary services, exemplified by grants such as $100,000 to the SPCA Serving Erie County in August 2024 for barrier reduction in care access. These efforts target systemic shelter challenges, including overcrowding and euthanasia rates, though outcomes depend on local implementation by grantees.

Economic contributions and industry influence

PetSmart operates approximately 1,669 locations across the and , generating an estimated $10 billion in annual as of 2023 and employing around 50,000 workers, thereby supporting in , , and services sectors. These operations contribute to regional economies through direct payroll, store leasing, and expenditures on , accessories, and veterinary services, which sustain upstream suppliers and providers in the $33.2 billion U.S. pet stores market projected for 2025. As the dominant player with a 29.6% share of U.S. pet store industry revenue, PetSmart exerts substantial influence on pricing dynamics, product assortment, and inventory standards for national brands, compelling competitors like Petco to adapt strategies amid consolidation trends. Its scale enables bulk procurement that lowers costs across the supply chain, benefiting manufacturers while promoting higher-volume distribution of premium pet nutrition and wellness items, which has correlated with overall pet industry expenditure growth to $150.6 billion in 2024. The company's 2017 acquisition of Chewy.com for $3.4 billion further amplified its role in bridging brick-and-mortar and online channels, accelerating e-commerce penetration from 24% of pet product sales in 2019 to 38% in 2024 and setting precedents for hybrid retail models.

Controversies and Criticisms

Grooming and in-store animal welfare incidents

An investigative report documented 47 instances of dogs dying during or shortly after grooming sessions at PetSmart stores across 14 states from 2008 to 2018, with 32 deaths occurring after 2015. Of these, 20 involved brachycephalic breeds prone to respiratory issues, such as English bulldogs. Notable cases include the death of a 7-year-old English bulldog named Capone on February 1, 2017, following a nail trim at a store; a 7-year-old named Pepe on May 4, 2016, after grooming in ; and an 8-year-old English bulldog named Scruffles on December 29, 2017, post-grooming in . In May 2021, a died during a nail trim at a store, with surveillance footage showing its neck hyperextended while restrained by groomers; four employees faced animal cruelty charges. Lawsuits have followed, such as a 2017 suit alleging in the 2016 death of a 14-year-old , a 2020 claim of to an emotional support dog due to inadequate supervision, and a 2022 filing by owner AJ Ross over restraints causing her 's death. In-store animal welfare issues have included violations at a location from February 2017 to December 2019, where state agriculture inspectors cited 23 breaches of the , such as denying veterinary care to sneezing cats with ocular discharge, providing contaminated or absent water, maintaining filthy cages with waste overflow, and failing to clean enclosures during inspections. The state warned of potential $5,000 fines per violation and license revocation. Additional reports highlight a 2024 incident where a 3-year-old Aussiedoodle died after boarding at a store, prompting animal control investigation, and employee accounts of dead animals accumulating in store freezers amid high-volume operations. PetSmart has responded to grooming concerns by implementing pre-grooming assessments, annual recertifications for stylists, quarterly , and camera installations in salons starting in 2018, with full rollout by August 2019. The company maintains that incidents are isolated and not indicative of systemic failure, conducting internal probes and offering settlements with nondisclosure agreements in some cases.

Supplier practices and ethical sourcing allegations

PetSmart requires suppliers to adhere to its Supplier , which mandates compliance with applicable laws, ethical business practices, and humane treatment of , including environments free from distress, , abuse, or neglect. The company conducts audits and reserves the right to terminate relationships for violations, while its Vet Assured program sets standards for pet sourcing, care, and transportation to promote responsible practices. Allegations of unethical sourcing have centered on live animal suppliers, particularly for small mammals, , and reptiles. In August 2021, a U.S. Department of Agriculture inspection of Sun Pet Ltd., an Atlanta-based wholesaler that supplied animals to PetSmart, documented violations of federal regulations, including dead hamsters in 21 enclosures with some partially eaten (one instance involving a live being cannibalized), gerbils denied access to , untreated issues such as eye infections and respiratory distress, and substandard housing like cracked enclosures and moldy food. These findings, released in September 2021, echoed prior PETA undercover investigations at Sun Pet revealing neglect and mistreatment, though 's advocacy role warrants scrutiny of its methods and selective reporting. Similar issues arose with other suppliers. A 2016 USDA inspection of Holmes Farm Inc., alleged by PETA to supply to PetSmart, uncovered over 100 violations, including abuse and poor conditions, prompting criticism from advocates. In December 2024, reported an investigation at a reptile breeder supplying bearded dragons to PetSmart, citing unchecked adenovirus outbreaks leading to deaths and shipments of infected animals, though independent verification beyond PETA's claims remains limited. Historically, prior to PetSmart's policy shift to end sales of and cats in favor of partnerships, the company faced accusations from groups like the of sourcing puppies from high-volume breeders operating in conditions akin to puppy mills, characterized by overcrowding and inadequate care. Post-, focus shifted to non-mammal sourcing, but federal citations at suppliers indicate ongoing challenges in oversight despite stated policies. PetSmart has terminated ties with some problematic vendors following investigations, as in the case of the supplier after repeated USDA violations spanning nearly a decade.

Labor conditions and private equity effects

PetSmart's acquisition by a led by in March 2015 for approximately $8.7 billion marked the largest buyout of a U.S. firm at the time, loading the company with significant debt that necessitated aggressive cost-control measures. These financial pressures, inherent to leveraged buyouts, contributed to reduced staffing levels and heightened workloads for employees, particularly in grooming and operations, as the firm prioritized debt servicing and profitability over operational investments. Independent analyses and employee reports indicate that such strategies often lead to labor intensification, with PetSmart experiencing a documented increase in operational demands post-acquisition. Labor conditions at PetSmart have drawn criticism for inadequate safety protocols and resource shortages, exacerbated during the when employees reported insufficient (PPE) and hazard pay despite frontline exposure risks. Grooming staff, in particular, faced hazardous environments including outdated equipment, lack of climate control in salons, and emotional strain from handling deceased animals, with freezers allegedly accumulating dead pets due to under-resourced veterinary and disposal processes. These issues intensified under ownership, correlating with a reported doubling of in-store pet deaths since 2015, which workers attributed to rushed procedures and insufficient training amid staffing cuts. Legal actions have highlighted systemic labor violations, including a 2022 class-action lawsuit alleging PetSmart's Training Repayment Agreement Provisions (TRAPs) constituted predatory lending by requiring groomers to repay training costs—up to thousands of dollars—if they left within a set period, effectively trapping low-wage workers (often earning near minimum wage) in substandard conditions to avoid debt. The Colorado Attorney General filed suit in 2022 and pursued further enforcement in 2025, claiming the program violated consumer protection laws by misleading employees on debt obligations and mobility restrictions. Additional settlements include a $10 million resolution in 2023 for wage-and-hour violations involving unpaid meal breaks and off-the-clock work for non-exempt staff. Class actions have also targeted final pay delivery via prepaid cards, deemed non-compliant with state labor codes requiring check or cash. In response to deteriorating conditions, PetSmart employees have pursued , achieving the first U.S. store victory in , in October 2024 with a 12-2 vote, followed by successes in and ongoing efforts in amid company opposition including hired consultants at $425 per hour to dissuade workers. These campaigns cite demands for stable scheduling, higher pay, and improved safety, contrasting with pre-2015 public ownership eras and reflecting broader private equity-driven erosion of worker leverage through non-union structures and benefit reductions. Recent 2025 layoffs further strained relations, with non-unionized employees seeking enhanced protections under provincial or federal guidelines. While has defended its tenure by noting additional pandemic-era compensation, critics from labor advocates and U.S. senators argue the firm's extraction of dividends—amid $4 billion in proposed payouts—prioritized investor returns over employee welfare.

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