Chewy Aims for Scaled Health Platform with Credible Retail Offering
Chewy Inc., a leading pet care company, presented its business strategy at the Goldman Sachs Global Consumer and Retail Conference. The company is shifting its focus from being just a pet retailer to a pet care platform that incorporates health, technology, and services.
According to Sumit Singh, Chief Executive of Chewy, the company has made significant progress since its initial public offering six to seven years ago. Gross margins have expanded from 18% at the IPO to about 30% now, driven by Autoship, health business, and supply chain improvements.
The company's long-term shift towards a pet care platform is gaining traction, with Chewy Health becoming a major growth engine, contributing around $4 billion or 44% of the company's incremental revenue over the past six years. The total addressable market for health is estimated at about $50 billion, and Chewy captures 70 cents of every dollar moving online in the pet pharmacy and products space.
Chewy plans to use artificial intelligence (AI), agentic commerce tools, and its clinic network to support future growth while aiming to self-fund most investments. The company expects $50 million in AI-driven savings in 2027.