Chewy share price up 10% days after IPO debut
The online pet product retailer's share price is rising after a successful IPO launch.
Chewy Inc share price is up days after an impressive initial public offering ( IPO) debut. The online pet supply retailer has performed better than other higher-profile 2019 IPO’s like Uber since its Wall Street debut.
Chewy finds success with dedicated customer service
Chewy was founded by Ryan Cohen, and Michael Day, in 2011. The online pet supply store grew from a struggling start-up to a booming business that was sold to PetSmart in 2017 for $3.4 billion. Sales topped $3.5 billion in 2018, a growth of 68%.
Chewy was valued at $8.7 billion and shares were priced at $22 when it went public. In its first day of trading, shares surged almost 80% above the listed IPO price. Cohen noted that personalised customer service is key to Chewy’s success.
‘I love making customers happy. When people shop at Chewy, they really understand we care about them, we care about their pets, and they want to tell all their friends and family,’ said Cohen.
Phillip Cooper, pet industry advisor, says that Chewy sets itself apart from other online retailers like Amazon by paying meticulous attention to its customers and their pets.
‘Chewy has a tremendous following at the consumer level. These guys know how many dogs people have, what their ages are and if you lose a dog, they send a bouquet of flowers!' said Cooper.
What’s next for Chewy?
Despite strong sales, Chewy is still not profitable with $267.9 million in losses in 2018. US residents spent $72 billion on their pets in 2018, according to the American Pet Products Association. Chewy has tapped into a growing customer base of ‘pet parents’ and hopes to increase its revenue by expanding its pet pharmacy division. Sumit Singh, Chewy's chief executive officer (CEO), is optimistic about Chewy’s future.
‘There’s a lot more growth in front of us. The way we engage and retain customers. The fact that 90% of our revenue comes from repeat customers. There’s a lot more in front of us than behind us at this point,’ said Singh.
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