Consumers decreasing non-essential expenditures; Chewy prioritizes healthcare sector
Freshen up Your Furry Companion's Healthcare at Chewy
NEW YORK - Chewy's upcoming ventures in healthcare aim to revolutionize pet parenting.
During the National Retail Federation's Big Show in NY, Chewy CEO Sumit Singh announced their ambition to conquer the animal health sector, stating, "Animal health is the next frontier. That much has been clear." The $40 billion market of vet health, growing faster than pet food, supplies, or retail, represents a colossal opportunity for Chewy.
One of their groundbreaking initiatives includes the launch of Chewy Vet Care, their first veterinary clinic due this year. By 2024, Chewy plans to establish vet practices, offering services like surgery, urgent care, and routine check-ups. Employing Chewy's open platform technology, their vet clinics will cater to Chewy Vet Care as well as third-party partner practices.
Chewy aims to streamline veterinarian services, addressing concerns like limited after-hours and holiday appointments, and overhauling traditional clinics' less desirable aspects, such as unpleasant odors and sterile aesthetics. As Singh mentioned, "More than the humans, pets immediately recognize that."
Chewy's medicinal missions don't stop at the clinic - they also offer the telehealth Connect with a Vet service and the veterinarian-exclusive marketplace Practice Hub. The booming humanization of pets drives demand for health and wellness offerings, making pet healthcare a top priority for pet parents.
Petco and PetSmart also recognize the burgeoning pet health market. In 2020, Petco transformed into a health-focused company, offering wellness-centric food options, pet hospitals, and Vital Care, its annual membership program. Meanwhile, PetSmart unveiled an online pharmacy for pet medications in 2021.
The pet sector, particularly pet health, remains a strong and stable force in an uncertain economy. Chewy cited resilient customer spending on pet health as a key factor in their recent successes.
Recent Financial Performance
Chewy's third quarter hallmarked a net revenue increase of 8.2% year over year, reaching $2.7 billion. Despite posting a net loss of $35.8 million, compared to a profit of $2.3 million the year prior, and an operating loss of $10.2 million, rising from $434,000 in the previous quarter, Singh remains optimistic. The introduction of new health and wellness services like Chewy Vet Care may draw additional customers to Chewy's ecosystem. "Pet parents are still very resilient," Singh said. "We've remained fairly resilient."
- Chewy's upcoming ventures in pet healthcare seek to revolutionize the lifestyle of pet parents, targeting the $40 billion veterinary health market.
- Chewy Vet Care, due to launch this year, will be their first veterinary clinic offering services like surgery, urgent care, and routine check-ups.
- Employing Chewy's open platform technology, their vet clinics will cater not only to Chewy Vet Care but also to third-party partner practices.
- The booming humanization of pets drives demand for health and wellness offerings, making pet healthcare a top priority for Chewy.
- In an effort to address concerns such as limited after-hours and holiday appointments, Chewy aims to streamline veterinarian services and overhaul traditional clinics' less desirable aspects.
- Echoing the moves of competitors like Petco and PetSmart, Chewy also offers telehealth services like Connect with a Vet and the veterinarian-exclusive marketplace Practice Hub.
- The pet sector, particularly pet health, remains a strong and stable force in an uncertain economy, with Chewy citing resilient customer spending on pet health as a key factor in their recent successes.
