𝙲𝚑𝚎𝚠𝚢'𝚜 𝙰𝚞𝚝𝚘𝚜𝚑𝚒𝚙 𝙱𝚞𝚜𝚒𝚗𝚎𝚜𝚜 𝙼𝚘𝚍𝚎𝚕 𝙸𝚜 𝙰𝚝𝚝𝚛𝚊𝚌𝚝𝚒𝚟𝚎, 𝙱𝚞𝚝 𝙰𝚛𝚎 𝚂𝚎𝚝 𝚃𝚘 𝚂𝚕𝚘𝚠
As with many "pandemic winners", investors got a bit ahead of themselves, as
$49 billion turned out to be a huge valuation for a company that, at its simplest, just sells pet
stuff online.
Sticky salesInvestors weren't
just feeling fuzzy about their pets. They really liked
Chewy's business model because it doesn't look like a lot of other e-commerce businesses for one simple reason: pets need to eat (and do other things) every day... and unlike us they are usually happy to eat the same thing over and over. That means repeat, predictable, purchases — which investors love.
Indeed, as of its latest quarter, over
70% of Chewy's sales were from "Autoship subscriptions" — repeat subscription purchases for food, treats, cat litter, medicines or other pet supplies.
𝙲𝚑𝚊𝚛𝚝𝚛 | 𝙳𝚊𝚝𝚊 𝚂𝚝𝚘𝚛𝚢𝚝𝚎𝚕𝚕𝚒𝚗𝚐
