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Summary
- BarkBox is going public after a US$1.6 billion merger with Northern Star Acquisition Corporation.
- The company specially designs boxes of dog toys and treats, and has attracted more than one million subscribers in the US.
BarkBox, the start-up company that became famous for its monthly subscription service for dogs, has announced a significant US$1.6 billion merger with Northern Star Acquisition Corporation. The merger will consequently make BarkBox a public company.
The purchase by Northern Star Acquisition Corporation, a special purpose acquisition company (SPAC), is believed to raise an additional US$454 million and could be announced in the upcoming days.
BarkBox saw a 58 per cent spike in subscriptions in 2020, as it is no secret that Americans spend a fortune on their furry friends. Currently, BarkBox boasts of a subscription count of over a million and wants to expand its product range.
The high demand for boxes full of toys and treats for dogs could also be attributed to a spurt in pet adoptions since the pandemic started.
Source: Shutterstock
Earlier in November, another pet store giant Petco Animal Supplies Inc. applied for an IPO due to the increased demand for pet toys. An online pet-retailer Chewy experienced a 45 per cent boost in business compared to last year. Chewy’s stocks have skyrocketed by 241 per cent this year alone.
Recent investigations have also found that people were buying more presents for pets than for humans. Overall, pet sales rose by 21 per cent compared to 2019.
What could be the reason for BarkBox’s triumph story?
The Northern Star CEO Joanna Coles believes that BarkBox became so successful due to changed shopping habits of many people. Up until recently, buying things online was not everyone’s cup of tea, but COVID-19 ushered in the new trend as many were forced to stay at home and spend hours in front of the screen.
BarkBox’s co-founder Matt Meeker agrees with Ms Coles, saying the online-only business has been instrumental to its success.
America is a massive market for pet-related shopping. Recent findings concluded that Americans spend over US$100 billion annually on their furry companions, with about a quarter of the sum being spent on the pet food.
Image Source: Shutterstock
Personalised care works wonder
BARK Eats, another division that Mr Meeker launched earlier this year, entirely personalises dogs’ food according to their age, size, activity time, breed, among others.
After analysing all elements, a qualified nutritionist comes up with portion size and type of food for the pet, which makes the dog healthy, long-term. Customers seem to love this concept and find themselves attracted enough to stay subscribed.
Mr Meeker thinks that a big part of BARK Eats’ accomplishment comes from the experience their solutions provide, i.e. the feeling of having a personalised plan for their dogs. Once the customers decide to have a tailored diet for their pets, buying giant bags of dog food at the supermarket loses its charm.
What are future ideas for BarkBox?
Even though BarkBox provides tailor-made products for dogs only, it does not rule out expanding its services to cater to other pets as well.
Another plan is to partner up with Amazon in order to reach a broader audience.
Currently, BarkBox sells a box of its products for US$35 monthly, and US$26 if subscribed for six months.
Every month, the pet e-commerce business configures 150,000 different dog parcels and sells some of its products via Target, Petco, and Costco Wholesale.
