Significant news has shaped the retail sector this week, with Chewy’s strong second-quarter net sales increase of 7.3% highlighting a series of action across the industry. Major events ranged from leadership transitions, activist investor moves, and even a high-profile victory for a retail figure in politics.
The week’s highlights included Chewy’s revenue jump, the appointment of a new CEO at Rifle Paper Co., growing activist pressure at Ethan Allen, and a former department store executive claiming the Democratic nomination for Rhode Island’s governor’s race.
Chewy Delivers Second-Quarter Surge and Increases Full-Year Guidance
For the second quarter, Chewy Inc. achieved $3.3 billion in net sales, climbing 7.3% year over year, as shown in recent company reports. When excluding SmartPak and Modern Animal acquisitions, Chewy’s adjusted net sales posted a 5.7% annual rise. Chewy continues to rely on its Autoship service, which saw a 9.3% increase for the quarter and remains the cornerstone of its revenue.
Even as many retailers experience slumping demand for nonessential and high-end pet items, Chewy sustained momentum. According to Chief Financial Officer Chris Deppe, sales of treats slowed more noticeably than those of staple foods as customers became increasingly selective in their purchases.
Looking ahead, Chewy raised its full-year projection, expecting 6.8% to 7.7% net sales growth, which would bring its 2026 annual revenue to between $13.46 billion and $13.57 billion. The company updated its profit targets as well, now forecasting an adjusted EBITDA margin between 6.7% and 6.8%, improving upon earlier numbers.
Retail Leadership Shifts and Political Headlines
This week’s focus on executive changes began with Rifle Paper Co. naming Carey Ann Campbell as CEO. Campbell, who previously held roles at Southern Tide, stepped into leadership in April. Anna Bond, founder of Rifle Paper Co., sees Campbell’s appointment as ideal for steering upcoming growth. The business, which currently operates its main store in Winter Park, Florida, also announced plans to open a new location in Tampa this fall.
In addition to business news, politics and retail crossed paths as Helena Foulkes—known for her tenure as CEO at Hudson’s Bay Company and her 25-year career at CVS, where she ultimately served as CVS Pharmacy president—captured the Democratic gubernatorial primary in Rhode Island. With nearly all precincts reporting, Foulkes secured 62.5% of votes as reported by NBC, surpassing sitting governor Dan McKee. After an unsuccessful run four years earlier, her 2026 campaign has centered on making healthcare affordable, reducing utility costs, creating jobs, and strengthening technical education. The general election awaits, with Foulkes facing the Republican candidate—either Aaron Guckian or Elaine Pelino—once their contest is decided.
Activist Pressure Drives Leadership Search at Ethan Allen
Meanwhile, Ethan Allen is dealing with an activist intervention. Doug Bergeron, who holds more than 5% of the company’s shares, declared Thursday that he is overseeing a search to find a replacement for current CEO Farooq Kathwari, citing concerns about Kathwari’s age and management approach. Bergeron shared that he’s already identified suitable prospects, including efforts led by Kristine Miller, who previously worked at eBay. The relationship between Bergeron’s team and Kathwari remains tense, following Bergeron’s earlier push for a significant board shakeup.
In response, Kathwari told Bloomberg Television that no internal discussion has occurred regarding his departure, underlining his fitness and engagement—emphasizing his active, sports-centric routine. Ethan Allen declined to issue a public statement about the CEO search at this time.
Innovative Store Concepts and Openings
This season, Temptations, a brand well-known for cat treats, is debuting a new pop-up cat bodega in New York City running through September 19. The themed location will treat visitors to complimentary snacks and exclusive merchandise, with Lukasz Wysoczanski, vice president at Mars Pet Nutrition North America, explaining that the bodega is a tribute to the city’s admired shop cats and their unique place in corner stores.
The Road Ahead
This week’s developments highlight the ongoing changes within retail, including Chewy’s expanding digital reach, shifts in executive leadership and political arenas, and the emergence of unique store formats like Temptations’ bodega. Continual transformation is expected for the industry, signaling further evolution in the coming months.