Nearly a dozen smaller companies also joined the race. These days, most online retailers are under pressure, but the situation is particularly dire for pet suppliers. Now a long-awaited shakeout appears to be at hand. During a midmorning visit to the company's Emeryville, Calif., headquarters last week, more than half the desks appeared to have been vacated. Industry executives say Petstore has been shopping itself to other companies.
Petstore executives deny the rumors.
Just weeks earlier, however, he told The Standard that Petstore had been discussing consolidation since January with the three other leading online pet-supply retailers. Its rivals are struggling, too. CEO Julie Wainwright says gross margins should turn positive later this year when a second distribution center becomes fully operational. She has yet to convince investors, though. The companies are quickly depleting their cash reserves.