Dive Brief:
- Chewy’s paid Chewy+ membership program is “rapidly strengthening” and accounted for 3% of monthly sales in July, CEO Sumit Singh said on a Q2 2025 earnings call Wednesday.
- Chewy+ members make greater use of Chewy’s app and autoship service compared to non-members, according to Singh. Members also buy at a greater frequency and include more items in each of their orders.
- “We see this program in line with an Amazon Prime or Costco membership or Walmart+, with similar benefits and similar returns,” Singh said during the call. “And so our job is to position it as the best pet membership program in the industry.”
Dive Insight:
Chewy is working to nurture the growth of Chewy+ while minimizing the amount spent on advertising by introducing it to existing Chewy shoppers instead of investing in external marketing efforts, according to Singh.
“We're seeing really good participation of existing Chewy members converting to become Chewy+ members,” Singh said. “So the marginal cost of that acquisition is zero or nearly zero to us, and most of the exposure is being provided by on-site and funnel shopping experiences.”
Net sales rose 8.6% year over year to $3.1 billion in the second quarter of 2025, according to a company earnings report. Active customers grew 4.5% year over year to 20.9 million, maintaining a customer experience-boosted quarterly growth streak that started in the third quarter of 2024.
Bringing customers into the Chewy+ program helps improve the experience for its growing customer base, according to Singh.
“This customer base is sticky, and the programs like Chewy+ allow us to enhance the process of discoverability and get customers to explore, discover and then attach an even greater set of products or a greater range of products and services offered by Chewy,” Singh said.
Chewy’s investments in the site experience have already paid off among consumers. The company has held the top spot for customer satisfaction among online retailers for the past three years, according to the American Customer Satisfaction Index.
