Chewy launched a new version of its Chewy+ membership program, lowering the annual fee to $59 from $79. The subscription includes free shipping with no order minimum, shopping rewards, one free virtual veterinary visit annually, discounts on additional visits, 24/7 Pet Poison Helpline access, samples, and exclusive deals. Rewards are credits for future Chewy purchases rather than cash, and membership renews automatically unless canceled. Morgan Stanley analyst Nathan Feather said the lower fee and added benefits could drive incremental Chewy+ subscribers, noting the breakeven point on the 5% rewards program falls from roughly $1.6K in annual spending to about $1.2K, and that the company confirmed it expects to add more services without changing the price. Feather and his team believe Chewy still needs more features for high adoption, especially new pet health care options. Chewy shares are down 20% over the last six weeks and 44% lower year to date.
Chewy IncChewy cuts Chewy+ annual fee to $59 from $79 and adds benefits, which Morgan Stanley says could drive incremental subscribers.
Morgan Stanley