Commentary
For almost 25 years, home delivery and autoship options have been available for veterinary hospitals. The recent Q2 report from Chewy shows the importance animal owners place on recurring shipments and online access to healthcare and food products.
Avoiding a decision IS a decision . . . failing to decide IS also a decision.”
Source: Pet Product News, September 6, 2022. Link. A statement from Sumit Singh, CEO of Chewy says “<Chewy> believe our superior customer value proposition, strength in resilient demand categories such as food and healthcare, and the recurring nature of our autoship business enabled us to continue taking market share and extend our leadership position in the recession-resistant pet category.”
Autoship sales increased 17.3 percent and reached 73.1 percent of total net sales. Chewy net sales for the second quarter of fiscal year 2022 ended July 31 improved 12.8 percent year-over-year, totaling $2.43 billion. Autoship customer sales were $1.78 billion.
INSIGHTS: Clients continue to value veterinary guidance. We believe clients will support veterinary clinic online supply options. Consider the opportunity costs if choosing to not offer online ordering and recurring shipment options for clients.