Will Automated Warehouses Make Chewy Profitable?
Head over to Valley View Business Park in Archbald, Pennsylvania, and you'll see a construction project underway. Pet product e-commerce company Chewy (NYSE: CHWY) is working on a fulfillment center (the company's 11th), which doesn't sound remarkable. But it will be Chewy's first automated fulfillment center, and that's something investors should pay attention to.
The company grew revenue by 40% in 2019, an impressive feat. But it also recorded a net loss of $252 million, making a path to profitability imperative. That's what this new automated fulfillment center is supposed to provide.
Chewy is investing to make its business profitable. Image source: Getty Images.
Source Fool.com
