Chewy is prioritizing U.S. health services, customer spending expansion and artificial intelligence as its next growth phase, CEO Sumit Singh said during a Goldman Sachs conference fireside chat. Singh characterized pet health as a roughly $50 billion total addressable market, including an estimated $12 billion to $15 billion in products such as medications, prescription diets, supplements and flea-and-tick treatments, and said Chewy has become the country's largest pet pharmacy since entering the category in 2018, capturing about $0.70 of every dollar moving online in pet medications and related products. Over the past six years Chewy added approximately $9 billion in incremental revenue, with about $4 billion coming from Chewy Health, and each existing customer who becomes a pharmacy customer adds approximately $300 to $500 in net sales per active customer. The company operates 60 veterinary clinics that Singh said are outperforming expectations, with a Chewy Vet Care clinic expected to generate about $3.5 million in revenue plus roughly $800,000 in additional website sales for approximately $4.3 million combined, reaching break-even in about 20 months, and it acquired Modern Animal to immediately double its clinic base. Chewy continues to target 150,000 to 250,000 net active-customer additions and aims for long-term high-single-digit to low-double-digit revenue growth, self-funding most initiatives through its base business, clinic margins and an expected $50 million in AI savings in 2027, with health acquisitions the next capital-allocation priority after reinvestment and international expansion remaining a lower priority.
Chewy IncChewy expects $50M in AI savings in 2027 and names health acquisitions as next capital-allocation priority.
Goldman Sachs Group Inc