Chewy Eyes Healthcare and Private Brands as Growth Areas
Healthcare and private brands are two areas of growth that Chewy is focusing on going forward, said Sumit Singh, CEO of the online retailer during the company’s Q1 2019 results earning call with investors.
“Improving pet health and wellness is a common goal that we share with the vet community,” Singh said. “We also enjoy a deep connection with our customers and are continuing to raise awareness on pet health and preventative care by utilizing our marketing abilities.”
The company recently made strides with Chewy Pharmacy. To accommodate growth, Chewy opened a new pharmacy co-located with the company’s fulfillment center in Phoenix, which is operated under the company’s own licenses.
“As we celebrate our first anniversary, we have been pleased with the customer response thus far,” Singh said. “We are still early in the pharmacy offering and will continue to look for opportunities to deepen our engagement with veterinarians and pet parents as we expand in this area.”
Singh also said the company is focused on growing its private brands, noting that in 2018, private brands accounted for “about 5 percent” of the company’s sales.
Chewy’s net sales grew 45.2 percent year-over-year to $1.1 billion in the company’s first quarter of fiscal year 2019, which ended May 5, 2019.
These results reflect the company’s “focus on customer experience and the strength of our underlying business model, including growth and spending among existing customers,” Singh said. “Q1 marked our second quarter, with greater than $1 billion in sales.”
Active customers grew 3.5 million year-over-year to 11.3 million active customers, and net sales per active customer increased approximately 9 percent from $315 dollars to $343 dollars.
“We are pleased to report strong first quarter 2019 results as a newly public company,” Singh said. “We will continue to innovate with a keen focus on delivering the best customer experience as we execute on our mission to become the most trusted and convenient online destination for pet parents.
Chewy, which was acquired by Phoenix-based PetSmart in 2017, has headquarters in Dania Beach, Fla., and Boston.