Description
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. The company completed its initial public offering in 2019, raising $1 billion. In 2020, total yearly net sales increased 47% to $7.15 billion from 2019 sales.
History
Chewy was founded under the name "Mr. Chewy" in June 2011 by Ryan Cohen and Michael Day. The company hired former employees and executives from Amazon, PetSmart, Whole Foods Market, and Wayfair. In March 2012, the company estimated a total yearly revenue of $26 million, despite losing money in its first half year. From 2014 to 2015, sales grew from $205 million to $423 million.
By 2017, the company had revenue of approximately $2 billion and 51% of online pet food sales in the US. At that time, Ryan Cohen prepared to take Chewy public as both Petco and PetSmart approached with merger offers. 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. 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. Allen & Co. served as financial advisor to Chewy on the deal.[18] 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.
Between 2017 and 2018, Chewy’s sales increased from $2.1 billion to $3.5 billion, with 66% of sales coming from customers signed up for automatic recurring shipments. Chewy received the Stevie Award for Favorite Customer Service in Retail in 2017 and 2018. In 2018, Chewy created Chewy Pharmacy, an online pharmacy providing pet-targeted prescription medications. Orders placed through the business are completed in coordination with a team of in-house veterinarians.
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. Chewy went public on June 14, 2019, at $22 per share. In the 2019 fiscal year, Chewy earned net sales of $4.85 billion, a 40 percent year-over-year increase on a 52-week to 52-week basis. The company saw increased demand from millions of existing and new customers as the business remained resilient throughout the economic disruption of the COVID-19 era.
After Singh took the company public, doubled revenue, and helped Chewy top a $24 billion market cap, the company launched its first fully automated distribution center in October 2020. The new facility uses robotics to pick, pack, and ship products.
That same month, Chewy launched a free tele-triage service called Connect With a Vet. In November 2020, Chewy announced that it would produce and fulfill orders of customized prescription medications, commonly referred to as compounding, for instances where commercial alternatives are absent. In 2020, it was announced that PetSmart and Chewy would be separated by private equity firm BC Partners Inc. in a recapitalization plan; the process began in early 2021.
In 2019 and 2020, Chewy was included in Built In Boston's best places to work in Boston. The company's other accolades include designation as a "Top 10 Employer Brand" in Boston in both 2019 and 2020, Newsweek's recognition for "America's Best Customer Service" for three consecutive years from 2019 through 2021, Ad Age's distinction as one of "America’s 20 Hottest Brands 2020," and Comparably's 2020 top rankings for Best Company Culture and Best Companies for Women. Chewy was also recognized in Comparably's 2021 top rankings for Best Company Outlook, Best Product & Design and Best Engineering teams.
In March 2021, Chewy reported revenue of $2.04 billion for Q4 of 2020, and net sales of $7.15 billion for the fiscal year. CEO Sumit Singh announced the company reached profitability for the first time since going Public in 2018.
