PetSmart Inc.
(
PETM
) - a provider of products, services, and solutions for the
lifetime needs of pets in North America - plans to open a new
distribution center in Bethel, Pennsylvania to meet the increased
demand for its products. The new facility is expected to be
completed by the first quarter of 2014.
The Phoenix-headquartered company believes that the new
distribution center will aid its growth going forward. Moreover,
management said that the construction of the 870,000-square foot
Bethel distribution center will create further employment
opportunities in the near-eastern Pennsylvania town.
The distribution center is expected to employ about 300
personnel by the end of first quarter of 2015, which could go up to
around 500 employees by year-end 2016.
With a view to reduce transportation cost, management looks to
serve around 170 PetSmart's stores in the fiscal 2014 and more than
260 stores by the end of fiscal 2015 through its new distribution
center. PetSmart considers the new distribution center to be
strategically located and expects it to enhance its supply
chain.
With the opening of the new warehouse in Bethel, PetSmart looks
to close two distribution centers located in Gahanna, Ohio and
Hagerstown, Maryland. Management assured that the personnel
distressed due to the closing of these two centers will be proposed
for further opportunities in other PetSmart's distribution
center.
In a bid to boost employee morale, management affirms that the
efficiency of the distribution centers is the prime driver of the
company's consistent growth. Going forward, PetSmart looks to
upgrade their distribution centers by offering growth opportunities
to existing personnel as well as to the new recruits.
PetSmart has around 50,000 employees working in more than 1,241
pet stores in the United States, Canada and Puerto Rico, and more
than 194 in-store PetSmart PetsHotel cat and dog lodging amenities.
The company is also one of the leading online providers of pet
supplies and information related to pet care.
Based on higher sales and cost containment efforts in the first
quarter of 2012, the company carries a Zacks #1 Rank, which
translates into short-term Strong Buy rating and correlates with
our long-term Outperform recommendation.
PETSMART INC (PETM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment
Research