Kibbles ‘n’ miss... Chewy was a pandemic go-to for pet goodies as 1 in 5 Americans welcomed new WFH companions into their homes. The online pet-supply deliverer even turned its first profit last year, after going public. But its fortunes have stalled. Chewy shares sank 16% yesterday after it unboxed a $63M quarterly loss — its third in row, and nearly double what investors were expecting.
- Empty digi-cart: Sales jumped 17% from a year earlier, but Chewy expects growth to slow this year as supply setbacks create a “highly challenging operating environment.”
The golden (retriever) era… Chewy makes most of its $$ through autoship (think: weekly cat-litter deliveries). Over the past two years, the company has raked in 7M+ new customers, but as the puppy-palooza fades so has Chewy’s growth. To win pet parents back:
- Chewy Loyalty: Chewy will launch its first membership program next year. While the perk details are still TBD, it may help engage regular shoppers, who tend to splurge more on their fur babies.
You can’t buy loyalty, but you can reward it… Chewy gained popularity — while differentiating itself from Amazon — with a relentless customer-centric approach. The company’s known for sending customers handwritten notes and even custom pet portraits and flowers when their pets die. But not even above-and-beyond customer service is a match for persistent supply shortages. If your kitty’s favorite wet food isn't in stock, you’ll click it on Amazon or grab it during your grocery run. Chewy’s planned loyalty program could keep pet parents from straying — if the perks are worth it.