Amazon.com, Inc. (NASDAQ:AMZN) has an unexpected competitor, but you wouldn’t tell it by the AMZN stock price today — up nearly 4% as the market rallies hours before Election Day.
That unexpected competitor is none other than PetSmart, Inc. (NASDAQ:PETM), which on Monday announced a mobile-friendly redesign offering same-day, scheduled deliveries and subscriptions like, well, Amazon Prime.
The redesigned PetSmart.com is described as a “commerce-meets-content experience,” aimed at luring in the ever-expanding crowd who prefer to spend online rather than in traditional brick-and-mortar stores.
In addition to same-day and subscription-based shipping, other new features include one-page checkout and scheduled delivery, effectively transitioning PetSmart retail stores into “fulfillment resources.”
Brendan Witcher, a principal analyst with Forrester Research, was quoted in the press release as saying the following:
“Leading retailers are strategically differentiating themselves through customer-centric user experiences that both define the brand and meet the dynamic expectations of today’s digitally savvy consumers. PetSmart’s move to better align the commerce experience with each individual’s unique shopping journey shows they are putting the customer at the center of their strategy.”
Much like Amazon Prime, with scheduled delivery, customers can set delivery anywhere from two hours to several days later, after which the items are picked up from the nearest PetSmart location by Deliv, which is backed in part by United Parcel Service, Inc. (NYSE:UPS).
What This Means for AMZN Stock
With AMZN stock sitting on a year-to-date gain of nearly 16%, Amazon stock holders aren’t too threatened.
But remember, Amazon recently forayed into the grocery ring, attempting to become a one-stop shop for local delivery of everyday products, from groceries to, yes, pet food.
PetSmart’s same-day delivery will be available at launch in 17 markets covering 2,500 zip codes using the same-day delivery service Deliv. The service costs $7.99, and is currently available in Chicago, Seattle, Los Angeles, Orange Country, San Francisco, San Jose, Atlanta, Miami and Las Vegas. It’ll be available in Washington, D.C., Houston, Dallas, Philadelphia, Northern New Jersey, New York City, Yonkers and Boston before the holiday selling season.
Previously, PETM used Google Express from Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG), so it wasn’t exactly in the stone age when it came to modern delivery.
AMZN currently offers same-day delivery in 27 markets across the nation, but PetSmart’s own initiatives can be nothing less than a thorn in Amazon’s side.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
