When Drs. Foster & Smith announced its closure in early 2019, it sent shockwaves through the pet supply world. If you shopped online for pet medications, food, or specialty supplies, chances are you trusted Drs. Foster & Smith at least once. This wasn’t just another e-commerce site it was a pioneer, especially in pet pharmaceuticals and expert advice.
The closure followed its 2015 acquisition by Petco, a move anticipated to spark growth. But by February 2019, Drs. Foster & Smith ended 35 years of service, leaving customers and employees asking what happened. We’ll walk through why this respected brand shut down, what led to its fall, and what small business owners can learn from the experience.
Background: The Rise of Drs. Foster & Smith
Drs. Foster & Smith didn’t start as a sleek e-commerce giant. In fact, it began in 1983 as a mail-order catalog founded by veterinarians Race Foster and Marty Smith in Rhinelander, Wisconsin. The company’s focus was simple: deliver trusted and veterinarian-approved pet products directly to homes.
Pet owners quickly realized they could find specialty medications, hard-to-source foods, and expert-backed advice all in one place. By the late 1990s and early 2000s, Drs. Foster & Smith had grown into the largest pet supply catalog retailer in the United States. Its transition to online sales kept profits strong for years, outpacing many brick-and-mortar stores.
Did you know? At its peak, Drs. Foster & Smith shipped millions of orders annually and operated a respected pharmacy serving pet owners nationwide.
In 2015, Petco one of the “big two” pet retailers in the country acquired Drs. Foster & Smith for an undisclosed sum. The goal was clear: tap into Drs. Foster & Smith’s robust online pharmacy and customer base while strengthening Petco’s digital footprint.
Closure Announcement: A Difficult Email for Customers
On January 28, 2019, loyal customers of Drs. Foster & Smith opened their inboxes to find an unexpected message. The headline was clear: Drs. Foster & Smith would close within weeks. The timing was short orders would only be accepted through the week of February 11, 2019.
For many customers, this email came as a surprise. They’d come to expect consistent service and advice from the brand. Some customers relied on Drs. Foster & Smith not only for supplies but for specialized veterinary products not always available at big-box competitors.
Tip: Always have a transition plan for loyal customers if your business faces changes or closure. Prepare communication early so you don’t catch people off guard.
Impact on Employees: Sudden, Sweeping Changes
The closure wasn’t just a website event it hit real people across Drs. Foster & Smith’s Rhinelander, Wisconsin operations. The same day the announcement went public, Petco began laying off up to 289 employees immediately. Over the next several months, as all local warehouses, call centers, and pharmacy facilities wound down, as many as 500 employees lost their jobs.
For a small town anchored by one of its largest employers, this was a tough blow. Families relying on the steady paychecks faced uncertainty overnight. Wisely, local leaders and workforce agencies quickly stepped in to help with job training sessions and placement services for those affected.
Key takeaway: If you lead a business that’s a major local employer, contingency plans matter when you make big changes. Engage with community partners early and help staff find soft landings.
Reasons for Closure: Petco’s Strategy Shift and Market Realities
Every business that shuts down has a core set of reasons driving that decision. In the case of Drs. Foster & Smith, three main factors led to the end:
1. Streamlining Operations: Petco acquired Drs. Foster & Smith to expand its digital and pharmacy reach. But by 2019, leadership decided to consolidate brands and focus marketing spend and technology investments on petco.com, rather than running two competing e-commerce operations.
2. Changing Consumer Behavior: Over the last decade, more shoppers ordered pet food, medications, and bedding through digital marketplaces. The market shifted toward ultra-fast delivery, subscription plans, and personalized recommendations.
3. Intense Competition: Giants like Chewy.com (itself freshly acquired by PetSmart) and Amazon made it tough for older digital-first brands to keep up. Deep pockets, nationwide warehouses, and high ad budgets allowed them to win customers with convenience and price.
Focus on this lesson: As you scale, always review your market position against current competitors. Yesterday’s advantage can quickly become today’s vulnerability.
Petco’s official statements centered on “core business” and “streamlining,” but the subtext was clear either invest heavily to modernize, or step back and shift resources to where you compete best.
Transition for Customers: Redirects, Offers, and New Routines
A sudden business closure risks leaving loyal customers in limbo. Petco handled the transition in a few steps:
- Website Redirection: Anyone typing drsfostersmith.com after February 2019 landed on petco.com instead, with clear banners explaining the change.
- Incentives for Loyalty: New site visitors received promo codes, coupons, or reminders about special Petco features like online pharmacy services and auto-shipping.
- Customer Service Support: For those with outstanding orders or refills, Petco ramped up its customer service team to address questions and concerns.
If you manage an e-commerce operation, remember this: a smooth transition earns customer trust even when your business model changes. Anticipate likely questions (“Where do I find my old orders?” or “Will my auto-ship continue?”) and give clear, step-by-step answers.
For example, customers who depended on regular pet medication shipments got email reminders to set up new profiles on Petco.com to avoid service gaps. Quick customer outreach preserved good will during a rocky period.
Company Operations After Closure
By June 2019, operations at Rhinelander including all warehouses, offices, and call centers had wound down completely. The pharmacy, previously known for strict quality standards, was also shut. This marked the end of an era no more shipments, no more specialist advice from the original team.
One piece remained for a little while: LiveAquaria, an aquarium livestock business specializing in rare fish and corals, continued operating temporarily. LiveAquaria had originally been a Drs. Foster & Smith brand, later spun off, and operated separately for a transitional period before being sold off entirely. But to be clear, the core pet supply and pharmacy operations of Drs. Foster & Smith were gone for good.
Review regularly: When divesting or shutting down divisions, keep communication flowing to avoid confusion inside and outside your business.
Key Business Lessons: How Other Companies Can Avoid Similar Fates
Seeing a respected business disappear is always sobering. But forward-looking operators see opportunity in every story especially when the lessons are clear.
Stay Obsessed With Customer Needs
Drs. Foster & Smith thrived on expertise and personal service. As digital retail evolved, competitors offered speed, discounting, and broad selections. Focus on the customers you already have before chasing new ones. Find new ways to serve them even if the market changes around you.
Invest in Technology Early and Consistently
Many legacy e-commerce businesses struggle when they don’t keep up with website platforms, automation, or logistics. Don’t become obsolete. Regularly review your systems and invest before your hand is forced.
Know When to Consolidate, Not Just Expand
Petco made a hard call: two online brands meant divided resources and duplicative expenses. Sometimes, consolidating operations (even if it means shutting a respected brand) lets you survive and compete long-term.
Prepare for Employee Impact
A closure always affects people first. As you scale, create plans and partnerships that help workers land on their feet, should downsizing occur. Build a reputation for caring about staff, and your culture will attract top performers even during tough stretches.
Monitor Competitive Risks
Review your place in the market at least quarterly especially in sectors like retail, where disruptors emerge fast. Another way to stay agile: solicit customer feedback early and be willing to pivot your offerings.
Did you know? Harvard research finds that businesses with clear marketplace “reality checks” outperform those that act on gut instinct alone.
For more practical business cases and how to manage risk as you scale, check out Mega Business Journal for expert insights.
Conclusion
Drs. Foster & Smith’s closure in 2019 marked the end of one of the pet industry’s best-known e-commerce pioneers. After 35 years of direct-to-consumer leadership, the combination of digital disruption, aggressive competition, and a shifting retail landscape forced even heritage businesses to evolve or exit.
Key takeaway: No matter your niche, always invest in customer focus, agility, and forward-thinking technology. Even market leaders can fade if they stand still. Review your business rhythm often, prepare for worst case scenarios, and treat transitions as times of reflection as much as reinvention.
For customers, employees, and small business owners, the Drs. Foster & Smith story is more than a cautionary tale it’s a playbook for adaptation. Focus on the core, invest in change early, and have a backup plan. That’s how you stay relevant for the next 35 years and beyond.
