Chewy (company)

Chewy
Private
Industry Retail
Founded 2011
Founder Ryan Cohen (CEO)
Michael Day (CTO)
Headquarters Dania Beach, Florida, U.S.
Area served
 United States
Products Pet food and products
Parent PetSmart
Website Official website

Chewy (sometimes referred to as Chewy.com) is an online retailer of pet food and other pet-related products owned by PetSmart and is based in Dania Beach, Florida. The company offers around 30,000 items for dogs and cats. In addition to its headquarters in Florida, Chewy also maintains fulfillment centers in Texas, Nevada, Pennsylvania, and Indiana.[1][2][3] It was founded in 2011[4][5] and has received $236M in venture capital financing over 5 rounds[6] from Volition Capital,[7] Mark Vadon, T. Rowe Price, New Horizons Fund, BlackRock, Allen & Co, Verlinvest and Greenspring Associates.[6][8] On February 1, 2017, the company announced an expanded, five-year $90M secured senior credit facility from Wells Fargo Capital Finance.[9]

On 18 April 2017, PetSmart, Inc. (“PetSmart”) announced that it had entered into a definitive agreement to acquire Chewy. Upon closing, Chewy will continue to be led by CEO Ryan Cohen and operate largely as an independent subsidiary of PetSmart, focusing on its current business strategy, while PetSmart will continue to execute its strategic initiatives across the combined company.[10][11] On May 31, 2017, PetSmart announced that it had completed the acquisition of Chewy.[12]

History

Chewy was founded as Mr. Chewy[4][5] in September 2011 by Ryan Cohen (CEO) and Michael Day (CTO).[1][2][13] The company was started with an initial investment of $50,000. Day's original vision was to open a no-kill animal shelter but felt that starting a business would allow him to better assist shelters currently in existence. The company donates a portion of each purchase to select animal shelters.[2][14]

In March 2012, the company estimated a total yearly revenue of around $25 million, despite actually losing money in its first half year.[2][4] Between 2012 and 2014, however, traffic to the website increased by 500%.[15] Due to most orders having originated on the east coast of the United States, the company's only warehouse was located in Pennsylvania.[2] In August 2013, Chewy's headquarters moved to their current home on the third floor of the Design Center of the Americas in Dania Beach, Florida. The company occupies about 70,000 square feet of office space in the complex.[1][16]

In 2014, Chewy received an undisclosed amount of funding from Boston-based growth equity firm, Volition Capital.[5][17] In July 2014, Chewy purchased a former Toys "R" Us warehouse and distribution center at TRIC near Sparks, Nevada.[3] The company would go on to hire former employees and executives from companies like Amazon, PetSmart, Whole Foods Market, and Wayfair. By 2015, the company employed over 1,200 staffers and offered around 30,000 items.[1][18]

Products and operation

Chewy offers over 30,000 pet products, largely for dogs and cats. Its primary product is pet food, and it offers a range of options from gourmet to discount food.[1][14] Other products include leashes, grooming tools, toys, strollers, and numerous others.[1] Delivery for purchases over $49 is free. Customers can also opt for scheduled food deliveries.[14][19] Orders can be placed online or by phone.[1] A portion of all purchases is donated to no-kill animal shelters.[2][14]

The company also employs artists and writers who are given the task of composing hand-written postcards for all new purchases. Artists also paint detailed images of customers' pets at random. Customers who submit photographs of their pets to the customer service team, or through Facebook or other social media have a chance for their pet to receive a special gift. [1][20][21]

References

  1. 1 2 3 4 5 6 7 8 Valverde, Miriam (6 November 2015). "Pet retailer Chewy.com is part of a growing breed". Sun-Sentinel. Retrieved 2 August 2016.
  2. 1 2 3 4 5 6 Miller, Susan R. (30 March 2012). "Pet product online retailer sees growth in a bullish market". South Florida Business Journal. Retrieved 2 August 2016.
  3. 1 2 O'Driscoll, Bill (2 July 2014). "Pet food e-tailer to fill vacant Toys R Us site". Reno Gazette-Journal. Retrieved 2 August 2016.
  4. 1 2 3 Woo, Stu (6 March 2012). "Pets.com 2.0". The Wall Street Journal. Retrieved 2 August 2016.
  5. 1 2 3 C., Piers (15 January 2015). "Emerging startup: Chewy.com". Varyonic. Retrieved 2 August 2016.
  6. 1 2 "Pet food retailer Chewy.com has seen fantastic growth. But can it keep up the pace? | Miami Herald". www.miamiherald.com. Retrieved 2017-04-19.
  7. ↑ Loizos, Connie (26 July 2016). "Volition Capital has rounded up $250 million for its third fund". TechCrunch. Retrieved 2 August 2016.
  8. ↑ "Chewy Funding & Chewy Investors - CB Insights". Retrieved 2017-04-19.
  9. ↑ "Wells Fargo Capital Finance Completes Expanded Financing for Leading Pet Retailer Chewy | Wells Fargo Capital Finance". Wells Fargo Capital Finance. 2017-02-01. Retrieved 2017-04-19.
  10. ↑ PetSmart. "PetSmart® NewsRoom News Release". phx.corporate-ir.net. Retrieved 2017-04-18.
  11. ↑ Adams, Susan. "Fast-Growing Pet-Product Upstart Chewy Is Selling Out To PetSmart For A Reported $3.35 Billion". Forbes. Retrieved 2017-04-18.
  12. ↑ "PetSmart Completes Acquisition of Chewy". www.businesswire.com. Retrieved 2017-06-01.
  13. ↑ "Company Overview of Chewy, Inc.". Bloomberg. Retrieved 2 August 2016.
  14. 1 2 3 4 Barrett, Lori (2 February 2012). "A Dog's New Best Friend: The Delivery Man". The Wall Street Journal. Retrieved 2 August 2016.
  15. ↑ Gazdik, Tanya (19 October 2014). "Online Retailers Positioned To Take Bite Out Of Pet Sales". MediaPost Communications. Retrieved 2 August 2016.
  16. ↑ Krischer Goodman, Cindy (23 August 2015). "A new design for South Florida DCOTA". Miami Herald. Retrieved 2 August 2016.
  17. ↑ Collins, Allison (14 January 2015). "Volition Invests $15M in B2B Commerce Software". Mergers & Acquisitions. Retrieved 2 August 2016.
  18. ↑ Muldowney, Susan (1 April 2016). "The $8 billion business battle over your pets". In The Black. Retrieved 2 August 2016.
  19. ↑ Halkias, Maria (27 June 2016). "Pet supply stores finding good homes in North Texas shopping centers". The Dallas Morning News. Retrieved 2 August 2016.
  20. ↑ Roman, Ernan (21 April 2016). "Post-purchase Engagement is Essential… and Overlooked". Customer Think. Retrieved 2 August 2016.
  21. ↑ Jones, Chuck (2 December 2015). "Sealing the Business". Chuck Jones Direct. Retrieved 2 August 2016.
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