The move was confirmed in a brief statement from the Petco corporate office in San Diego on Jan. 16.
"Since we acquired it in early 2015, Doctors Foster & Smith (DFS) has been challenged to meet our growth expectations, which has prompted us to make some changes that will drive improved results and allow us to expand key operational areas here in Rhinelander," the statement reads. "Over the first half of 2018, we'll transition most DFS front office functions to our National Support Center in San Diego, which eliminates approximately 55 positions in the areas of marketing, merchandising and ecommerce support. We'll continue to employ more than 450 people here in Rhinelander to support our ongoing operations and the future growth of our pharmacy, customer care, and Live Aquaria businesses along with our distribution center, and retail store. Affected individuals have been notified and will be provided severance and transition support, and will be eligible for consideration for positions in other expansion areas where they are qualified."
The memo, signed by Petco executive vice president of innovation and digital Brock Weatherup, states Doctors Foster & Smith president Spencer Insolia will be leaving the company "immediately."
"I want to thank Spencer for his contributions and support during his time here," Weatherup wrote in the memo to employees.
According to the memo, the upcoming transition will better position DFS for the future.
"It will drive growth while better managing our costs," Weatherup wrote. "In an increasingly competitive omni-channel retail environment, shifting these helps position our business for future success, while further prioritizing, investing and focusing on key growth areas. Functions that directly support LiveAquaria and (the) pharmacy will remain in Wisconsin."
Some of the local jobs will be eliminated immediately while others will occur over the next several months to support the transition, according to the memo.
"While it is always hard to make decisions that impact people it is the right thing to do," Weatherup wrote in the memo. "The affected partners are being provided severance and transition support, and will be eligible for consideration for local opportunities in other expansion areas where they are qualified. We are grateful for their contributions, both past and present."
The memo identifies Liz Strohen of DFS commercial operations as the person who will lead the transition to San Diego.
Others identified in Weatherup's memo include Jason Bellile, who will continue to lead warehouse and general facility needs, Mary Langford, who will serve as director customer care, and Tanya Tischendorf, who will handle customer service in Rhinelander.
Jon Roberts will be the head of pharmacy operations, Kevin Kohen will continue to lead the LiveAquaria, reporting to Jon Williamson. Tischendorf will be in charge of the local retail store and Patrick McCormack will continue to lead DFS IT operations, according to the memo.
A press spokeswoman at the Petco media center in San Diego would not comment on the changes beyond the brief statement issued by the company.
Coming together
In a press release announcing the sale of DFS to Petco on Nov. 12, 2014, it was said the purchase would unite one of the largest pet specialty retailers with one of the largest online pet retailers in the country.
The purchase was finalized on Feb. 2, 2015.
"This move underscores our commitment to nurturing the complete health and well-being of animals and further allows Petco to meet the diverse and expansive needs of pet parents," Petco CEO Jim Myer said in the November 2014 release. "As pet lovers first and foremost, our values are perfectly aligned with Drs. Foster and Smith, and we're confident this new addition to our business will help us continue to offer the very best in products and services to pets and pet parents."
DFS was founded in 1983 as a group of four veterinary clinics with the goal of helping pets live healthier, happier lives by providing the highest quality veterinary care available. Dr. Race Foster, Dr. Rory Foster and Dr. Marty Smith's Animal hospitals in Northern Wisconsin were the first in the nation to offer free rabies vaccinations and free spay/neutering services.
"Since its beginnings, Drs. Foster and Smith has developed a sterling reputation on the strengths of its top-level customer service, consumer education and competitive pricing, evidenced by tremendous customer loyalty and satisfaction. In 2003, the company began offering a full-service pharmacy that enables customers to fill prescriptions online and by mail-order," the press release said.
As part of the purchase, Petco acquired DFS's prescription services and its popular branded products, including joint care supplements, dog and cat foods, dog beds, cat furniture, horse supplies, equine equipment and other pet care essentials.
"At our founding, our intent with Drs. Foster and Smith was to provide pet owners with veterinary advice and quality pet supplies at affordable prices," said Dr. Race Foster, DVM, co-founder of Drs. Foster and Smith. "We believe Petco shares those same values, and we look forward to building on our original mission."
In the press release announcing the acquisition, Petco said it provides customers with high-quality pet food, supplies and services, driven by the understanding that pet health goes beyond basic needs to include support of the physical, mental, social and emotional needs of pets.
"The acquisition will complement Petco's existing capabilities in pet health to include prescription services, including prescription diets, preventive care and a broad base of products created by licensed veterinarians," the release said.
In a May 26, 2015 story published in The Lakeland Times, a DFS spokesman said the company, with over 500 employees, was the largest employer in Oneida County and the adjustment to being part of Petco was going well.
That story also reported that Petco had upgraded the company's IT department and improved the systems and technology in the warehouse operations. A state-of-the art video conferencing was also added to keep the Rhinelander offices in touch with the corporate headquarters in California.
Jamie Taylor may be reached via email at jamie@rivernewsonline.com.
