Chewy Inc
CHWY: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $68.00 | Kwlrvw | Flcwnwtbd |
Chewy's Online Pet Care Positioning Looks Solid but Near-Term Pressures Linger
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Business Strategy and Outlook
The pet care industry is quite attractive, with brand loyalty, sticky purchase habits, pet humanization, and limited cyclicality representing just a handful of alluring structural features in an $144 billion US market (American Pet Products Association). While a slew of players jockey for manufacturing and retail market share, Chewy's service-intensive subscription-driven platform looks poised to capture a disproportionate share of online sales, with the firm building a strong brand around customer service and perceived quality.