Chewy.com launched one 2019’s most anticipated IPOs earlier this year, and the first day did not disappoint, with the stock soaring 64% right off the bat. Since then, it hasn’t exactly cooled, trading at $32.70 at the time of this writing.
The company — a subsidiary of PetSmart which sells pet food and other pet-related products — entered the market at an auspicious time. Pet ownership is soaring in America, especially with the younger age groups.
And according to early results, Americans are happily chomping down on Chewy.com. In a CivicScience study of more than 1,800 Americans age 18 and older, 17% of the population has already ordered from the barely eight-year-old company, with positive experiences outnumbering negative ones by more than a 7-to-1 margin. Additionally, another 8% of Americans plan on giving Chewy.com a try.
Of course, the above considers all Americans. When you look at Americans who own cats or dogs, the numbers are even more eye-popping. More than 36% of cat owners have tried or intend to try the company, and 40% of dog (or dog and cat) owners have done the same. Additionally, over 20% of dog and/or cat owners have yet to hear about Chewy.com, which obviously leaves plenty of room for potential growth.
Also very noteworthy: Dog and/or cat owners who have tried Chewy.com absolutely love it by monster margins.
The above chart jives with the one below: People who consider themselves dog people are 47% more likely to have tried and liked Chewy.com compared to people who consider themselves cat people. But cat people – much like in the chart above – are more likely to try Chewy.com in the future.
As for age group use, it’s surprisingly flat. Generation X leads the way in use totals, but Generation Z and Millennials are the two groups that are poised to do more of their pet shopping on Chewy.com in the future, with 12% and 10%, respectively, planning on trying the service.
So while Chewy.com is proving to be very popular, there may be one potentially major hiccup on the horizon, and it’s every online retailer’s bugaboo: Amazon.
While 66% of Americans have a favorable view of Amazon.com, 70% of people who have used or intend to use Chewy.com have a favorable view of Amazon, and 54% of people who haven’t heard of Chewy.com have a favorable view of Amazon. In short: If Amazon decides to undercut Chewy on price, it could spell trouble for the upstart.
Who else is using Chewy.com? Bite down on this …
INSTAPET: Daily Instagram users have tried and liked Chewy.com at a 19% higher rate than non-daily (or never) users of the social media app.
WORD OF MOUTH: People who have tried and liked Chewy.com seek out online reviews for items they want to purchase at nearly a 2-to-1 rate compared with people who never check out online reviews first.
WOMEN FIRST: Women do everything. Perhaps this is part of the reason why women who have tried and liked Chewy.com outnumber men who have tried and liked it by a 2-to-1 margin?
MO’ MONEY MO’ DELIVERY: Households with incomes over $100,000 have tried and liked Chewy.com at a 31% higher rate than households with income under $50,000 and at a 13% higher rate than households between the two incomes.
Overall, Chewy.com seems to be in a good spot: People who have tried the company really (really) like it, and there are still plenty of people out there who haven’t even heard of it yet. Its biggest question -— along with almost all online mass retailers — is whether they will be able to hold Amazon at bay.