Reorder sales are strong: on a TTM basis, they've risen 21% in just the past two years. But the obvious top-line concern here is that smaller new customer cohorts will pressure reorder sales at some point down the line. And with Chewy Pharmacy launching this summer, competitive pressure for new customers is only going to get more intense going forward.
How will Chewy Pharmacy be structured compared to PETS's business model?
Reorder sales (which includes any customer who has previously placed an order) rose 10%+. New order sales, however, fell by about the same amount.
What would the re-order sales of PetMed Express vs. new order sales be in the future?
It operates a "gray market" business model, in which it acquires inventory indirectly, angering veterinarians and suppliers in the process.
Where exactly does PETS source its inventory?
largely irregular purchases
What is the cycle for sales typically?