Chewy (company)

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Chewy, Inc.
Public
Traded asNYSECHWY (Class A)
IndustryRetail
GenrePet supplies
Founded2011
Founders
Headquarters,
U.S.
Area served
United States
ProductsPet food and products
OwnerPetSmart (63.5%)
Number of employees
9,833 (2019)
Websitechewy.com

Chewy, Inc., a subsidiary of PetSmart based in Dania Beach, Florida, is an online retailer of pet food and other pet-related products.[1]

Description[edit]

It was founded under the name "Mr. Chewy" in September 2011 by Ryan Cohen and Michael Day.[2][3] [4][5][6] The company hired former employees and executives from Amazon, PetSmart, Whole Foods Market, and Wayfair.[4]

In March 2012, the company estimated a total yearly revenue of $26 million, despite losing money in its first half year.[5][2]

By 2016 it had received $236 million in venture capital financing over 5 rounds[7] from Volition Capital,[8] Mark Vadon, T. Rowe Price, New Horizons Fund, BlackRock, Allen & Co, Verlinvest and Greenspring Associates.[7][9]

By 2017, the company had revenue of approximately $2 billion and 51% of online pet food and litter sales in the US.[10][11] It spent heavily on customer acquisition and retention; in 2017 Forbes reported that its profitability was unclear, and quoted an unnamed competitor who that its customer acquisition costs might be as high as $200 per customer and who said: "The bottom line is that Chewy is incredibly predatory, and they're willing to lose money to grow their volume."[12]

In March 2018, Cohen stepped down as Chewy's CEO, and Sumit Singh was named the company's new CEO.[13]

In February 2018, Chewy opened a new 100,000 square foot customer service center in Hollywood, Florida, which houses over 1,000 employees.[14] Also in 2018, Chewy.com opened a new 802,671 sq. ft. distribution facility in Goodyear, Arizona, adding 700 new jobs to the Phoenix West Valley Metro Area.

On April 29, 2019, Chewy filed an S-1 for an initial public offering, intending to trade under the ticker symbol CHWY. In its filing, Chewy reported a net loss of $268 million on total sales of $3.5 billion for its 2018 fiscal year.[15] Chewy went public on June 14, 2019, at $22 per share.[16]

Acquisition[edit]

Chewy was acquired by PetSmart in May 2017 for $3.35 billion, which at the time was the largest ever acquisition of an e-commerce business.[17][18] Allen & Co. served as financial advisor to Chewy on the deal.[19] PetSmart later transferred 20% of its ownership stake in Chewy to private equity firm BC Partners, which has owned PetSmart since 2014, and also spun off an additional 16.5% of Chewy to an unrestricted subsidiary in 2018.[20]

References[edit]

  1. ^ "about chewy.com". www.chewy.com. Retrieved 26 November 2018.
  2. ^ a b Woo, Stu (6 March 2012). "Pets.com 2.0". The Wall Street Journal. Retrieved 2 August 2016.
  3. ^ C., Piers (15 January 2015). "Emerging startup: Chewy.com". Varyonic. Retrieved 2 August 2016.
  4. ^ a b Valverde, Miriam (6 November 2015). "Pet retailer Chewy.com is part of a growing breed". Sun-Sentinel. Retrieved 2 August 2016.
  5. ^ a b Miller, Susan R. (30 March 2012). "Pet product online retailer sees growth in a bullish market". South Florida Business Journal. Retrieved 2 August 2016.
  6. ^ "Company Overview of Chewy, Inc". Bloomberg. Retrieved 2 August 2016.
  7. ^ a b "Pet food retailer Chewy.com has seen fantastic growth. But can it keep up the pace?". Miami Herald. Retrieved 2017-04-19.
  8. ^ Loizos, Connie (26 July 2016). "Volition Capital has rounded up $250 million for its third fund". TechCrunch. Retrieved 2 August 2016.
  9. ^ "Chewy Funding & Chewy Investors - CB Insights". Retrieved 2017-04-19.
  10. ^ Marcia Heroux, "Why has Chewy.com succeeded? Co-founder points to its customer service and changing times," Sun-Sentinel, January 29, 2018.
  11. ^ Nancy Dahlberg, "PetSmart is buying Chewy.com in possibly the biggest e-commerce acquisition ever," Los Angeles Times, April 19, 2017.
  12. ^ Susan Adams, "The Man Who Found Gold in Dog Food," Forbes, January 24, 2017.
  13. ^ Stephanie Crets, "Roundup: Chewy CEO steps down and other personnel news," Internet Retailer, March 16, 2018.
  14. ^ Debora Lima, "Chewy.com opens its new call center in South Florida," South Florida Business Journal, February 13, 2018.
  15. ^ GmbH, finanzen net. "Online pet-food retailer Chewy.com files to go public (CHWY) | Markets Insider". markets.businessinsider.com. Retrieved 2019-05-01.
  16. ^ Verdon, Joan. "Don't Bet Against Pets: Retail Lessons From The Chewy IPO". Forbes. Retrieved 2019-06-18.
  17. ^ Emily Canal, "Meet the Young Founders of Chewy.com, Which PetSmart Just Bought for $3.35 Billion," Inc., April 19, 2017.
  18. ^ Jason Del Ray, "Ryan Cohen kept Chewy under the radar until it sold for more than $3 billion," Recode, December 6, 2017.
  19. ^ Jessica Dye, "PetSmart makes online push with Chewy.com deal," Financial Times, April 18, 2017.
  20. ^ Reuters. "PetSmart taps advisers to trim $8 billion debt pile: sources". Business Insider. Retrieved 2019-05-01.

External links[edit]