Chewy Plans International Expansion Following 13.6% Net Sales Growth in FY2022
Online pet retailer Chewy is looking to expand operations beyond the U.S. some time in 2023, but executives didn’t provide a more specific time frame or the markets it’s planning to enter.
“We are actively building the capabilities and team to launch our first international market over the next few quarters,” said Sumit Singh, CEO of Chewy on a recent call discussing the retailer’s Q4 and FY2022 results. “We expect this important development to unlock meaningful incremental TAM [total addressable market], and we are excited to introduce Chewy to a broader customer base with whom we believe our brand and mission will resonate strongly.”
Singh promised more details when Chewy discusses its Q1 2023 results, in approximately three months’ time. The retailer, which also offers pet insurance and practice management services for veterinarians, generated net sales of $2.71 billion in Q4 2022, which ended Jan. 29, 2023, a 13.4% increase over the same period the previous year. For the full fiscal year, net sales of $10.1 billion represented a 13.6% jump over FY2021.
“Against the backdrop of a rapidly changing operating and economic environment, Chewy produced record high revenue, profitability and free cash flow,” said Singh. “Chewy’s dedication to serving pet parents and partners with a widening ecosystem of offerings led to another year of market share gains in the pet category, which once again demonstrated its historical resilience despite evolving macro conditions.”
Singh believes Chewy still has room to grow within the U.S. as well: “The pet category has a U.S. total addressable market that is over $130 billion, which has grown consistently through the ups and downs of economic cycles,” he noted.
The retailer also is reaping the benefits of investments in warehouse automation, which include plans to open its fourth automated facility, in Nashville, Tenn., in the first half of 2023.