Chewy (company)

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Chewy, Inc.
TypePublic
NYSECHWY (Class A)
IndustryE-commerce
GenrePet supplies
Founded2011
Founders
Headquarters,
U.S.
Area served
United States
Key people
  • Sumit Singh (CEO)
  • Mario Marte (CFO)
  • Satish Mehta (CTO)
[1]
ProductsPet food and pet-related products
RevenueIncrease US$ 6.5 billion (2020)[2]
Increase US$ -252.37 million (2019)
Total assetsIncrease US$ 932.32 million (2019)
OwnerPetSmart (63.5%)
Number of employees
12,000 (2020)[3]
Websitechewy.com

Chewy, Inc. is an American online retailer of pet food and other pet-related products based in Dania Beach, Florida. In 2017, Chewy was acquired by PetSmart for $3.35 billion, which was the largest ever acquisition of an e-commerce business at the time.[4] The company completed its initial public offering in 2019, raising $1 billion.[3]

History[edit]

Chewy was founded under the name "Mr. Chewy" in June 2011 by Ryan Cohen and Michael Day.[5][6][7][8][9] The company hired former employees and executives from Amazon, PetSmart, Whole Foods Market, and Wayfair.[7] In March 2012, the company estimated a total yearly revenue of $26 million, despite losing money in its first half year.[8][5] From 2014 to 2015, sales grew from $205 million to $423 million.[10]

By 2017, the company had revenue of approximately $2 billion and 51% of online pet food sales in the US.[11][12] At that time, Ryan Cohen prepared to take Chewy public as both Petco and PetSmart approached with merger offers.[13] Petco's offer would be paid for in part using stock, whereas PetSmart offered an all-cash bid that would also allow Chewy to remain a completely separate business.[14] 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.[15] Allen & Co. served as financial advisor to Chewy on the deal.[16] 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.[17]

Between 2017 and 2018, Chewy’s sales increased from $2.1 billion to $3.5 billion,[18] with 66% of sales coming from customers signed up for automatic recurring shipments.[14] Chewy received the Stevie Award for Favorite Customer Service in Retail in 2017[19] and 2018.[20] In 2018, Chewy created Chewy Pharmacy, an online pharmacy providing pet-targeted prescription medications.[21] Orders placed through the business are completed in coordination with a team of in-house veterinarians.[22]

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.[23] Chewy went public on June 14, 2019, at $22 per share.[24]

Corporate affairs[edit]

The company's founder and first CEO, Ryan Cohen, stated that he used Jeff Bezos's 1997 letter to shareholders as a roadmap for how to grow Chewy by using Amazon's guidelines on the convenience of shopping online and customer service.[25] Sumit Singh was named the company's CEO in March 2018 after working as its COO since 2017 and as an executive at Dell and Amazon.[26][27][28][29] The company reported to have employed around 7,000 people in the United States in 2018 and more than 12,000 by 2019.[3][30]

Locations[edit]

In June 2011, Chewy was founded in Dania Beach, Florida outside Fort Lauderdale.[3] It opened a 400,000-square-foot facility in Mechanicsburg, Pennsylvania to allow for overnight delivery in the Northeast in 2014.[10] In 2017, Chewy announced that it would open an office in Boston, Massachusetts, which the company called its second headquarters.[31] In February 2018, Chewy opened a new 100,000 square foot customer service center in Hollywood, Florida, which houses over 1,000 employees.[32] Also in 2018, Chewy.com opened a new 802,671 sq. ft. distribution facility in Goodyear, Arizona.[33] It has 12 fulfillment centers and three customer service centers.[34]

Funding[edit]

In 2016, Chewy received $236 million in venture capital financing over 5 rounds[35] from Volition Capital,[36] Mark Vadon, T. Rowe Price, New Horizons Fund, BlackRock, Allen & Co, Verlinvest and Greenspring Associates.[35][37] As of 2019 the company was valued at $10.2 billion.[38]

References[edit]

  1. ^ "Chewy Inc". Bloomberg. Retrieved July 26, 2020.
  2. ^ "Q4 and Fiscal Year 2019 (PDF)" (PDF). April 2, 2020.
  3. ^ a b c d Chesto, Jon (December 25, 2019). "Chewy CEO sees big job growth in Boston". Boston Globe.
  4. ^ Emily Canal, "Meet the Young Founders of Chewy.com, Which PetSmart Just Bought for $3.35 Billion," Inc., April 19, 2017.
  5. ^ a b Woo, Stu (March 6, 2012). "Pets.com 2.0". The Wall Street Journal. Retrieved August 2, 2016.
  6. ^ C., Piers (January 15, 2015). "Emerging startup: Chewy.com". Varyonic. Retrieved August 2, 2016.
  7. ^ a b Valverde, Miriam (November 6, 2015). "Pet retailer Chewy.com is part of a growing breed". Sun-Sentinel. Retrieved August 2, 2016.
  8. ^ a b Miller, Susan R. (March 30, 2012). "Pet product online retailer sees growth in a bullish market". South Florida Business Journal. Retrieved August 2, 2016.
  9. ^ "Company Overview of Chewy, Inc". Bloomberg. Retrieved August 2, 2016.
  10. ^ a b Cohen, Ryan (January–February 2020). "The Founder of Chewy.com on Finding the Financing to Achieve Scale". Harvard Business Review. Retrieved January 4, 2020.
  11. ^ Marcia Heroux, "Why has Chewy.com succeeded? Co-founder points to its customer service and changing times," Sun-Sentinel, January 29, 2018.
  12. ^ Nancy Dahlberg, "PetSmart is buying Chewy.com in possibly the biggest e-commerce acquisition ever," Los Angeles Times, April 19, 2017.
  13. ^ Susan Adams, "The Man Who Found Gold in Dog Food," Forbes, January 24, 2017.
  14. ^ a b Gottfried, Miriam (October 1, 2019). "How PetSmart Swallowed Chewy—and Proved the Doubters Wrong". The Wall Street Journal. Retrieved January 26, 2020.
  15. ^ Jason Del Ray, "Ryan Cohen kept Chewy under the radar until it sold for more than $3 billion," Recode, December 6, 2017.
  16. ^ Jessica Dye, "PetSmart makes online push with Chewy.com deal," Financial Times, April 18, 2017.
  17. ^ Reuters. "PetSmart taps advisers to trim $8 billion debt pile: sources". Business Insider. Retrieved May 1, 2019.
  18. ^ Hirsch, Lauren; Picker, Leslie (June 13, 2019). "Chewy.com, PetSmart's online business, prices IPO at $22 a share, above expected range". CNBC. Retrieved January 26, 2020.
  19. ^ "How Chewy Built a Billion Dollar Company Based on Customer Experience | CustomerThink".
  20. ^ "2018 Stevie Award Winners | Stevie Awards". stevieawards.com.
  21. ^ "Chewy posts 40% net sales growth". Retail Dive.
  22. ^ Hurtibise, Ron. "Chewy.com enters online pet pharmacy market". sun-sentinel.com.
  23. ^ GmbH, finanzen net. "Online pet-food retailer Chewy.com files to go public (CHWY) | Markets Insider". markets.businessinsider.com. Retrieved May 1, 2019.
  24. ^ Verdon, Joan. "Don't Bet Against Pets: Retail Lessons From The Chewy IPO". Forbes. Retrieved June 18, 2019.
  25. ^ Verdon, Joan (January 26, 2020). "Ryan Cohen Started A Company That Took On Amazon, And Sold It For $3 Billion. Now He's Thinking About What's Next". Forbes. Retrieved July 14, 2020.
  26. ^ Stephanie Crets, "Roundup: Chewy CEO steps down and other personnel news," Internet Retailer, March 16, 2018.
  27. ^ Chesto, Jon (December 25, 2019). "Chewy CEO sees big job growth in Boston". Boston Globe. Retrieved June 8, 2020.
  28. ^ Hirsch, Lauren (April 29, 2019). "PetSmart's online business, Chewy.com, files to go public". CNBC.
  29. ^ "Chewy founder leaves as former Amazon exec takes over". Retail Dive.
  30. ^ Pounds, Marcia Heroux. "Why has Chewy.com succeeded? Co-founder points to its customer service and changing times". sun-sentinel.com.
  31. ^ Kirsner, Scott (January 17, 2017). "Chewy.com bounds into Boston". Boston Globe.
  32. ^ Debora Lima, "Chewy.com opens its new call center in South Florida," South Florida Business Journal, February 13, 2018.
  33. ^ Brown, Brandon (August 17, 2018). "Look inside Chewy's massive distribution center in Goodyear". Phoenix Business Journal.
  34. ^ Elkins, Ken (April 17, 2019). "Chewy to build $55M, 1,200-job distribution center outside of Salisbury". Charlotte Business Journal.
  35. ^ a b "Pet food retailer Chewy.com has seen fantastic growth. But can it keep up the pace?". Miami Herald. Retrieved April 19, 2017.
  36. ^ Loizos, Connie (July 26, 2016). "Volition Capital has rounded up $250 million for its third fund". TechCrunch. Retrieved August 2, 2016.
  37. ^ "Chewy Funding & Chewy Investors - CB Insights". Retrieved April 19, 2017.
  38. ^ Hanbury, Mary. "The cofounder of Chewy explains how he created a $10.2 billion empire selling pet food to millennials who treat their animals like their firstborn child". Business Insider.

External links[edit]