Chewy CEO Sees Online Shopping Rush ‘Here to Stay’ as Sales Boom
As consumers were forced indoors during the lockdown measures instilled across the globe due to the Coronavirus Pandemic, finding deliverable food sources became a priority.
This priority extended beyond the two-legged members of the household to include those with fur, feathers or gills. $CHWY (Chewy), an online pet retailer which operates in North America, has seen its sales volumes surge since the pandemic hit, and the company’s CEO, Sumit Singh, does not see the pickup in demand to lose momentum anytime soon.
$CHWY reported their first-quarter financials on Tuesday, beating both analyst consensus expectations on the Earnings-per-share and Revenue metrics. The share price is already up over 70% year-to-date versus the S&P 500 Index, which is relatively flat. Singh believes that the level of overall sales indicates that the company’s proposition is working and that the aggressive levels of growth can be sustained.
Perhaps the most indicative that the company can continue its success is that a large portion of new consumers returned to make second-round buys and on average spent more than the first time around. New customer behaviour already mirrors that of existing clients. This might mean that customers are adjusting to this new way of shopping and that this could be continued in the future.
$CHWY is part of eToro’s @ShoppingCart CopyPortfolio which looks to invest in a broad range of e-commerce companies who are active in the online retail and market place space. Chewy represents a line of companies that tackle a traditional industry with technological and business model innovation that is based on modern/digital consumer behaviour.
source: finance.yahoo.com/news/chewy-ceo-sees-online-shopping-211709834.html... Show More