Dog and cat adoption rates remained high amid reopening
As Americans confined to their homes awaited the coronavirus pandemic last year, people have increasingly turned to animal shelters and adopted dogs and cats as lockdown companions.
Although lockdowns have eased and the country has reopened, adoption rates have largely kept their shape, according to Sumit Singh, CEO of soft.
“Overall, we believe that adoptions, [are] year to year by double-digit percentages for both dogs and cats, ”he told CNBC’s Jim Cramer Thursday.
Plus, it doesn’t appear that pets are being returned to shelters in high numbers, said Singh, who took part in an interview on “Mad Money.” Chewy, a $ 33 billion online pet food and supply store, launched a pet adoption service last month and is currently working with 6,000 shelters, he said. note.
“Animals returning to shelters are actually the rate we were seeing in 2019, which would mean that when you balance new adoptions and returning animals, there are still a lot more animals being adopted right now. , which is great for the industry. “
Although Singh did not cite any statistics, online searches for pets remain high and the market for pet owners has grown significantly, according to research by Piper Sandler. The company reports that searches for terms such as “petfinder” and “puppies for sale” are up every two years, although they started to decline in April.
The pet products industry had sales of $ 103.6 billion in 2020, according to the American Pet Products Association. This is the first time that annual sales have crossed the $ 100 billion mark, the trade group announced in March. The association predicts that number will increase by almost 6% in 2021, which would exceed the historical average of around 3%.
After the close on Thursday, Chewy released results for its first fiscal quarter which ended on May 2. The company’s revenue rose 31.7% to $ 2.14 billion, from $ 1.62 billion a year ago. The results exceeded Wall Street estimates on the high and low lines.
Shares rose 2% during Thursday’s session to close at $ 79.35. The stock lost more than 1% in trade after the close.