Pet Supplies Company Chewy Sees Strong Growth from Subscriptions

June 12, 2020

What is Happening?


US-based online pet supplies retailer Chewy exceeds $1 billion for the first time in a quarter on subscription purchases and also hits new profit milestone.

With many local bricks-and-mortar pet stores closed due to the coronavirus, US-based online-only pet supplies retailer Chewy saw sales increased 46.2% to $1.62 billion, and for the first time, the company sold more than $1 billion through its auto-ship (subscription) program to pet owners who sign up for automatic replenishment of pet food and supplies.

What Does it Mean?


😇 Subscriptions and pet-food are a match made in heaven.

Chewy also estimated that it gained about $70 million in additional sales from customers stocking up on pet supplies as shelter-at-home orders took effect. The online retailer hired 4,600 new employees in the first quarter, in part to handle the surge in sales as well as for its new fulfilment centre.

Drawing the subscription trend forward, we feel that there are countless other products that make sense to be delivered by a subscription model.