While owning a pet is largely discretionary, taking care of it is not.
So if you’re pet foods and products marketer Chewy Inc., you keep unleashing new offerings that pet parents want to embrace.
In the company’s third fiscal quarter ended Oct. 30, 83% of $2.5 billion in net sales was derived from such non-discretionary items as food and health products.
Last week, the company announced an expansion of its private-label products with the addition of Vibeful—Chewy’s first branded line in the pet-wellness category.
Vibeful is a line of supplements ranging from multivitamins to hip and joint supplements.
According to Chewy, the non-prescription pet health and wellness category is estimated to exceed $2.4 billion this year.
“And given the increased consumer focus on wellness and the ongoing trend towards pet humanization, we believe this launch gives us another opportunity to strengthen our connection with customers and to drive top- and bottom-line results,” Chewy CEO Sumit Singh said in explaining Vibeful during an earnings call last week.
In October, the company expanded its CarePlus insurance and wellness platform to include insurance provider Lemonade Pet, in a partnership that will launch in the spring of 2023.
“We remain bullish on the pet insurance space and our ability to drive customer acquisition and deepen customer engagement,” said Singh.
Chewy’s bedrock Autoship program posted an approximately 19% sales increase in Q3 to represent 73.3% of net sales. Net sales per active customer—anyone who made a purchase in the 364 days prior to Oct. 30—rose by nearly 14% to $477.
The company increased its advertising and marketing spend in the quarter by 17.8% to $177.1 million because “as consumers shifted their focus away from summertime pursuits like travel towards the upcoming holiday season, we saw opportunities to increase our level of marketing investment compared to recent quarters.”
With a product portfolio exceeding 100,000, Chewy is beta-testing a sponsored-ads program on its website to promote “specific products from select vendors,” Singh added. “With these ads, our suppliers can seamlessly advertise to our 20 plus million active customers.”
One of Chewy’s most recent ads is part of its “Chewtorial” series titled “How To Stop A Cat From Biting”