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Here's How Chewy+ Is Boosting Autoship and Wallet Share for Chewy
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Key Takeaways
Chewy membership is boosting engagement, as members shop more frequently and place larger, multi-item orders.
Chewy users adopt Autoship more often, driving recurring orders and lifting customer retention and spending.
Management expects Chewy to reach a mid-single-digit share of net sales by the end of fiscal 2025.
Chewy, Inc.’s (CHWY - Free Report) membership program, Chewy+, is emerging as a significant driver of customer engagement and recurring revenues. The program, which offers free shipping, 5% rewards and exclusive member promotions, has already begun showing tangible benefits in key customer metrics. In July, Chewy+ made up about 3% of total monthly sales, and those members demonstrated higher spending, increased purchase frequency and more multi-item orders compared to nonmembers.
Chewy+ members are engaging more actively through the mobile app and adopting Autoship at higher rates, driving steady recurring order flow and strengthening long-term retention. Autoship already drives the majority of company sales, and the overlap with Chewy+ is enhancing predictability in customer spending. The resulting combination of subscription engagement and membership benefits is lifting net sales per active customer (NSPAC) and expanding the company’s share of wallet.
Autoship customer sales rose 14.9% year over year to $2,577 million in the second quarter of fiscal 2025, accounting for 83% of Chewy’s net sales. NSPAC climbed 4.6% from the prior-year period to $591, supported by a 20.9 million active customer base at quarter’s end.
Management expects the Chewy+ membership program to represent a mid-single-digit percentage of net sales by the end of fiscal 2025. The program is strengthening Chewy’s digital ecosystem by linking convenience, rewards and automation, turning membership into a reliable engine for sustained customer monetization.
How CENT and WOOF Measure Up Against CHWY’s Expansion
Chewy’s net sales grew 8.6% year over year to $3,104.2 million during the second quarter. Management foresees net sales between $12.5 billion and $12.6 billion for fiscal 2025, suggesting roughly 7% to 8% year-over-year growth.
CHWY’s net sales have outpaced those of Central Garden & Pet Company (CENT - Free Report) and Petco Health and Wellness Company, Inc. (WOOF - Free Report) .
Central Garden & Pet Company reported third-quarter fiscal 2025 net sales of $960.9 million, down 4% from the prior-year period. The top-line decline for Central Garden & Pet Company was due to assortment rationalization, softer demand in certain categories and the exit of lower-margin product lines. Despite these headwinds, the Pet segment of Central Garden & Pet Company gained market share in categories like dog chews, flea & tick, and pet bird categories, showing resilience.
Petco Health and Wellness Company posted second-quarter total net sales of $1,488.5 million, down 2.3% year over year, mainly reflecting store closures. Comparable sales declined 1.4% year over year. Petco Health and Wellness Company expects a low single-digit decrease in net sales for fiscal 2025.
What the Latest Metrics Say About Chewy
Shares of Chewy have gained 33.6% over the past year compared with the industry’s growth of 19.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, CHWY trades at a forward price-to-sales ratio of 1.13, below the industry’s average of 2.23. It has a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Chewy's current financial-year sales and earnings per share implies year-over-year growth of 6.1% and 22.1%, respectively.
Image: Bigstock
Here's How Chewy+ Is Boosting Autoship and Wallet Share for Chewy
Key Takeaways
Chewy, Inc.’s (CHWY - Free Report) membership program, Chewy+, is emerging as a significant driver of customer engagement and recurring revenues. The program, which offers free shipping, 5% rewards and exclusive member promotions, has already begun showing tangible benefits in key customer metrics. In July, Chewy+ made up about 3% of total monthly sales, and those members demonstrated higher spending, increased purchase frequency and more multi-item orders compared to nonmembers.
Chewy+ members are engaging more actively through the mobile app and adopting Autoship at higher rates, driving steady recurring order flow and strengthening long-term retention. Autoship already drives the majority of company sales, and the overlap with Chewy+ is enhancing predictability in customer spending. The resulting combination of subscription engagement and membership benefits is lifting net sales per active customer (NSPAC) and expanding the company’s share of wallet.
Autoship customer sales rose 14.9% year over year to $2,577 million in the second quarter of fiscal 2025, accounting for 83% of Chewy’s net sales. NSPAC climbed 4.6% from the prior-year period to $591, supported by a 20.9 million active customer base at quarter’s end.
Management expects the Chewy+ membership program to represent a mid-single-digit percentage of net sales by the end of fiscal 2025. The program is strengthening Chewy’s digital ecosystem by linking convenience, rewards and automation, turning membership into a reliable engine for sustained customer monetization.
How CENT and WOOF Measure Up Against CHWY’s Expansion
Chewy’s net sales grew 8.6% year over year to $3,104.2 million during the second quarter. Management foresees net sales between $12.5 billion and $12.6 billion for fiscal 2025, suggesting roughly 7% to 8% year-over-year growth.
CHWY’s net sales have outpaced those of Central Garden & Pet Company (CENT - Free Report) and Petco Health and Wellness Company, Inc. (WOOF - Free Report) .
Central Garden & Pet Company reported third-quarter fiscal 2025 net sales of $960.9 million, down 4% from the prior-year period. The top-line decline for Central Garden & Pet Company was due to assortment rationalization, softer demand in certain categories and the exit of lower-margin product lines. Despite these headwinds, the Pet segment of Central Garden & Pet Company gained market share in categories like dog chews, flea & tick, and pet bird categories, showing resilience.
Petco Health and Wellness Company posted second-quarter total net sales of $1,488.5 million, down 2.3% year over year, mainly reflecting store closures. Comparable sales declined 1.4% year over year. Petco Health and Wellness Company expects a low single-digit decrease in net sales for fiscal 2025.
What the Latest Metrics Say About Chewy
Shares of Chewy have gained 33.6% over the past year compared with the industry’s growth of 19.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, CHWY trades at a forward price-to-sales ratio of 1.13, below the industry’s average of 2.23. It has a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Chewy's current financial-year sales and earnings per share implies year-over-year growth of 6.1% and 22.1%, respectively.
Image Source: Zacks Investment Research
CHWY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.