Tough said that investments in veterinary clinics are helping the company attract new customers.
The online retailer for pet products published quarterly Income Wednesday (August 28) shows that net sales rose nearly 3% to $2.86 billion in the second quarter.
Managing Director Sumit Singh told analysts during a conference call that the company’s veterinary practices, two of which opened this quarter, are driving sales.
“With each additional week and month of operation in our clinical area, we continuously collect data that proves out of our initial thesis about Chewy Vet Care”, he said. “Although it is early, the leading indicators are promising. First, Chewy Vet Care serves as an acquisition funnel, with the share of net new customers we acquire through our clinics exceeding our Expectation.”
In addition, the inclusion of the clinics increases the company’s net revenue per active customer, supported by spending on veterinary services and “strong cross-category purchasing behavior,” Singh said.
Many customers are “deepening their engagement with the Chewy ecosystem” by purchasing groceries for the first time or placing orders at the company’s pharmacy, he said. Chewy also sees an “extremely positive” impact on visits to its website after clinic appointments.
“Chewy has very positive, early pet Parental interest in Chewy Vet Care”, Mitha MalhotraPresident of Chewy Health, told PYMNTS earlier this year. “Through our research, we found that customers see the opening of veterinary clinics as a natural extension of the types of services we should be offering and from what they expect from Chewy.”
Singh said last year that changes in consumer behavior provide an opportunity for Chewy to maintain its position as a leader in the online market. Pet products World. Pet owners today prefer consumables and health products over conventional consumer goods.
Also on Wednesday, Chewy management discussed the company’s efforts to increase customer engagement through its mobile app. Singh said during the call that the company is seeing early signs that its efforts to redesign the app are paying off.
“The number of individual customers ordering through our app increased by about 13% year-on-year, while the total number of orders through the mobile app increased by about 15% year-on-year,” he said. “We observed both more units per order and better retention when customers download and use the Chewy app.”
