Chewy has been one of the enduring winners of the pandemic era, having been particularly well suited to ride out some of the major trends in both shopping habits and life during lockdown — namely, the rise in e-commerce shopping and the turn to pets as consumers turned inward to their own homes.
In Q2, Chewy posted strong growth on top of last year’s blazing sales, which grew by nearly half during the same period. It bodes well for the business that much of Q2’s growth this year is based both on customer acquisition and rising sales per customer.
“We have increased share of wallet from every cohort we’ve added to our platform over the past 10 years, and our long-term revenue retention levels from each cohort remain well above 100%,” Singh told analysts on a conference call Wednesday, according to a Seeking Alpha transcript. “As a result, our base of recurring revenues grows over time as the revenue produced by each cohort stacks on top of one another, like the layers of a cake.”Retail Dive