Chewy's Earnings and Stock Performance Highlight Future of Pet Health Care Industry.
Chewy and Petco are investing heavily in pet health care, including pharmacy, insurance, and telehealth services, as well as veterinary hospitals. Pet health care is a crucial component of the $123.6 billion pet market, and both companies are positioning themselves for long-term growth and profitability. While sales of hard goods have been trending down, the demand for pet health care is expected to grow as pets age and require more care. Pet insurance and the dwindling footprint of independent veterinary providers present opportunities for growth and market share. However, Chewy has faced obstacles with virtual telehealth services due to state and federal regulations, while Petco's hospitals will take time to become profitable.