Chewy's Growth Is on Autopilot: The Power of Its $9.4 Billion Autoship Customer Sales

Core Insights - The core viewpoint is that Chewy has successfully capitalized on the trend of treating pets as family members, establishing itself as the leading seller of pet food and accessories [1] Revenue Growth - Chewy has more than doubled its revenue over the past five years, reaching $11.9 billion in sales for the latest fiscal year [2] - The company's revenue from customers participating in the Autoship program amounted to$9.4 billion, representing 79.2% of total revenue [5] Autoship Program - The Autoship program is a key component of Chewy's business model, allowing customers to schedule regular deliveries of frequently purchased items like pet food, medications, and kitty litter [3][4] - Autoship sales have consistently outpaced overall revenue growth, increasing from around 70% of sales in fiscal 2021 to just under 80% today [5] - In Q4, Autoship represented 80.6% of net sales, providing predictable revenue streams and enhancing customer loyalty [6] Competitive Advantage - Chewy's Autoship program creates a loyal customer base, offering predictable sales and higher spending per customer, which few other retailers can match [6][7] - The program allows Chewy to better manage rising costs and maintain profitability [6]