How is Chewy (CHWY) different from competitors? A little human.
Ryan Cohen, co-founder of Chewy, a recently opened online pet retailer, said compassion has come a long way in the commercial space, so Chewy has an advantage over Amazon (AMZN) and other e-commerce sites. . According to Cohen, who founded Chewy with Michael Day in 2011, Chewy is proud to be a pet lover and create an experience for them. Chewy, products for dogs, cats, reptiles, birds and other pets, customer service 24 hours a day, known for delivering portraits and pet flowers when pets die.
"Our customers realize that we really care," said Cohen. "We care about them, we care about their pets, we bring human factors to electronic commerce, I think this is very important in this category."
PetSmart acquired Chewy in 2017 for an incredible $ 3.35 billion. Just two years later, PetSmart, owned by a group of private equity firms led by BC Partners, moved Chewy to a public company on Friday. Stocks shot up and closed at $ 34.99 on the first trading day, an increase of 59% over its IPO price.
Last year, Chewy reported sales of $ 3.5 billion, 67% more than in 2017. According to reports, the net loss was $ 268 million, and has not yet made a profit. But Cohen believes that the company will make money.
"If we cut marketing spending, we could have had a profitable business many years ago," he said. "But the strategy is really: scale and market leadership."
Cohen no longer participates in Chewy's daily operations and says he may be involved in another company.
"I already know that retirement is terrible," said the 33-year-old, adding that he is talking to many different companies and entrepreneurs to determine the next step. "Maybe I'll start another business, who knows, I'm too young to retire."
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