20 Million Customers, of which 70% are enrolled into Autoship.

Think about the LTV/CAC calculations going on here. A cat or dog lives on average 10+ years & eat extremely regimented meals. Everyone knows you give your pet X amount of food three times a day. There is basically no variability in their diets and the volume consumed. This makes it extremely easy to time out when you will need your next bag of pet food and have it scheduled for delivery as needed.

The cash flows associated with these two statements look awfully similar, except Chewy's cash flows have an embedded inflation escalator.

Consumers are fickle and projecting habits & preferences into the future is a difficult task but I really do not see a reason why Autoship customers would cancel subscriptions in order to buy 40lb bags of food in person, so I do not believe physical retailers are a strong threat to Chewy's business model. Amazon can certainly replicate Chewy's Autoship feature but are currently reliant upon third party sellers who do not have the same buying power as Chewy. Amazon has a massive edge when it comes to costs associated with shipping & warehousing but Chewy has real buying power on the wholesale side of things.