Shares of Chewy Inc. rocketed in their public debut Friday, as investors looked to buy into the rapidly growing online seller that says it is feeding on a...
Shares of Chewy Inc. rocketed in their public debut Friday, as investors looked to buy into the rapidly growing online seller that says it is feeding on a “pet humanization” trend.
The company, which was launched in 2011, boasts that it is the largest “pure-play pet e-tailer” in the U.S., with a broad selection of more than 1,600 brands and the delivery of more than 100 million orders since inception. Chewy operates as an independent subsidiary of PetSmart, which acquired Chewy.com in May 2017.
The company has been led by Chief Executive Sumit Singh since March 2018. More than just a pet lover, Singh knows the e-commerce industry well. Before Chewy, Singh was director of Amazon.com Inc.’s consumables business from 2015 to 2017, and was general manager of Amazon’s North American merchant fulfillment and third-party businesses from 2013 to 2015.
And 2018 was the first year revenue didn’t more than double, as it grew 13-fold in 2012, nearly tripled in 2013 and 2014, and increased 107% in 2015, 113% in 2016 and 133% in 2017. The dual-class structure means Chewy can’t be included in the S&P 500, S&P MidCap 400 MID, -0.71% the S&P SmallCap 600 SML, -0.82% or the Russell 2000 RUT, -0.77% indexes, since those indexes exclude companies with multiple classes of shares.
‘High-touch’ service is key for the e-tailer Because one of Chewy’s missions to offer “personalized, high-touch customer service to every customer, every day and in every interaction,” the company needs inventory space to ship products quickly and customer-service centers. The company currently has seven fulfillment centers across seven states, three customer-service centers and two co-headquarters, in Florida and Boston.
People are spending more on pets, and for a long time Chewy said it believes it is well positioned to reap the benefits of continued growth in the “highly attractive” pet industry. One reason the pet market is attractive is growth has continued unabated, even through the last recession from 2008 to 2010.
Chewy said it believes the “pet humanization” trend is what is driving the increased spending per pet. There are three areas the company believes the trend manifests itself:
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chewy Shares Soar 70% After IPOPet food retailer’s launch surprises market.
Read more »
Chewy IPO is no dog: More shares to sell at higher price, total raise tops $1 billionChewy Inc. said Thursday that it will sell more shares at a higher price than it originally expected in an initial public offering. The online pet-products...
Read more »
Chewy Shares Soar 70% After IPOChewy saw shares jump 70% in the early hours of its market debut by lisettevoytko
Read more »
PetSmart's Chewy prices IPO at $22 per share, above target -sourceNEW YORK, June 13- Chewy Inc on Thursday priced its initial public offering at $22 per share, above its target, and sold more stock than originally planned, according to a person familiar with the matter, valuing the online pet products retailer at $8.77 billion. Chewy, controlled by private equity-owned PetSmart Inc, had set a price range of $19 to $21 per share, which...
Read more »
PetSmart's Chewy gets Wall Street tails wagging with $1 billion IPOChewy Inc said on Thursday it priced its initial public offering at $22 per shar...
Read more »