"There is a lot more growth ahead of us"



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<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Chewy & nbsp;(CHWY)& nbsp; CEO Sumit Singh was very pleased with the investors. In fact, the company's public debut on the New York Stock Exchange rose 77%, exceeding its $ 22 introductory price and its $ 36 opening. Shares in Chewy closed at $ 34.99 on Friday, up 59% from the price of its IPO. Chewy's (CHWY) CEO delighted investors as the company's public debut on the New York Stock Exchange rose to 77% above its introductory price. $ 22 and 36 opening transactions Chewy shares closed at $ 34.99 Friday, up 59% from its introductory price.

"We have a lot more growth ahead of us," Singh told Yahoo Finance. "The way we engage and retain our customers. The fact that 90% of our revenue comes from loyal customers (…), there is much more ahead of us than behind us at this point. "

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Chewy generated $ 3.5 billion in sales l & Last year but lost $ 268 million Under Singh's leadership for the last two years, the company has captured more than 50% of the $ 6 billion online pet care market, according to Singh. & nbsp;American Association of Pet Products, APPA. "data-reactid =" 17 "> Chewy generated sales of $ 3.5 billion last year, but lost $ 268 million under Singh's leadership for the past two years, the company has captured more than 50% of the online pet care market, which totals $ 6 billion, according to the American Pet Products Association, APPA.

In the United States, the pet product market is worth $ 70 billion and Singh expects the online share to reach 25% by 2022. He encourages Chewy to take it. a good part. "We are investing in building our own brands. We have entered the health sector where we really want to associate with veterinary practices and parents of pets, "he explained.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Catch up with Amazon"data-reactid =" 19 ">Catch up with Amazon

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Singh's vision for Chewy is to extend stop her from gaining an experience in an animal shop that, in her opinion, makes more sense to "pet parents." Data from & nbsp;SimilarWeb, a global leader in web analytics shows that Chewy is about to tackle the right tree. "data-reactid =" 20 "> Singh's vision for Chewy is to broaden the one-stop shop experience, which he says makes more sense for" pet parents. "" SimilarWeb data , a global leader in web analytics, show that Chewy is addressing the right tree.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Chewy manages to reach more people and at the same time, their competitors are not growing at the same pace, "said Pascal Cohen, head of Engineering and Solutions Implementation for SimilarWeb in North America. He compared visits to the Chewy site with competitors such as Amazon & nbsp;(AMZN)Petco (which is a private company) and PetSmart (the private company that owned Chewy and remains its majority shareholder). According to SimilarWeb, Chewy has doubled its desktop penetration rate, outpacing the others. "Data-reactid =" 21 ">" Chewy manages to reach more people and, at the same time, their competitors do not grow at the same pace ", Pascal Cohen, Chief of Engineering and Implementation SimilarWeb solutions in North America compared its visits to the Chewy site to competitors such as Amazon (AMZN), Petco (limited liability company) and PetSmart (private company holding Chewy and remaining its majority shareholder) According to SimilarWeb, Chewy doubled its desktop penetration, outstripping that of others.

Compared to Amazon's pet category, Chewy has a 9% conversion rate among visitors to its website, but Amazon is still leading with a conversion rate of 13%. "The fact is that Chewy is caught up by Amazon and based on our data, it generates more traffic than the Amazon pet category," Cohen said.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Price wars are coming"data-reactid =" 23 ">Price wars are coming

Local dog Frankie poses for photos in front of the New York Stock Exchange, decorated for the IPO of Chewy, on Friday, June 14, 2019. Chewy, the online salesman of pet food and grumpy toys, was released on Friday and its shares soared 71%. (AP Photo / Richard Drew)

But a potential problem for Chewy is the overlapping of visitors that threatens to attract customers to other online retailers. SimilarWeb data indicate that about 40% of consumers who viewed Chewy on a desktop computer also viewed other online retailers to compare prices.

"Chewy is gaining market share and growing, but Amazon remains a giant in price comparison," Cohen said. "They (Chewy) must be more competitive in price."

Singh said Chewy is already competitive. "Our portfolio share is constantly increasing. In 2018, our cohorts averaged $ 334 in portfolio, but we showed that when clients stay with us for five, six, or seven years, that number goes from $ 700 to $ 800. "

Singh pointed out that two-thirds of Chewy's revenue comes from its self-shipping subscription program. "The fact that 90% of our revenue comes from repeat purchases allows us to say that the commitment we develop fosters loyalty. Loyalty is fueling repeat purchases and we simply need to do more. "Did he declare.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The personal touch counts"data-reactid =" 39 ">The personal touch counts

But Singh, who has a four-year-old boy named Shih Tzu, Dee, whom his three-year-old daughter considers to be his brother, believes that the personal experience of a Chewy client will make him come back.

"We send you welcome cards, holiday cards. We send portraits of animals. Thousands of local artists across the country who have partnered with us to send you animal portraits in hand. You can not buy them, "he said. "It's a total surprise and a pleasure."

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Adam Shapiro is co-presenter of Yahoo Finance On the Move."data-reactid =" 42 ">Adam Shapiro is co-presenter of Yahoo Finance On the Move.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Read the latest financial and commercial news from Yahoo Finance"data-reactid =" 43 ">Read the latest financial and commercial news from Yahoo Finance

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