An online retailer of dog toys, snacks and accessories is expanding into Canada as the company looks to grow its market on waning sales in the United States.

Chewy, among the several tech companies to explode in popularity during the pandemic, announced its first international expansion on Thursday, with plans to enter the Canadian market in the third quarter of 2023.

“We can now leverage our platform to be reliably deployed in Canada, without meaningful incremental investment,” the company wrote in its quarterly memo to shareholders.

“As we assessed which geography would be most suitable for our expansion plans, we honed in on Canada’s large and growing market, where we see a path to achieving market share and profitability akin to our U.S. business.” 

Chewy said it will begin with a focus on the Greater Toronto Area, and gradually expand from there.

The company also announced a new fulfillment centre in Nashville and a partnership with Lemonade Pet Insurance.

Chewy reported a 14.7 per cent sales hike for its first quarter compared to last year, while boosting its annual revenue projection by US$50 million to as high as $11.35 billion. Thursday’s news shot shares up 27 per cent in early trading. 

“The superior value proposition of the Chewy brand continues to resonate, and our team continues to demonstrate operating discipline and high-quality execution,” Chewy CEO Sumit Singh said in a news release.