Tractor Supply hikes store expansion goal; 90 new locations on tap for 2025
Tractor Supply Company has set ambitious long-term financial targets and store expansion goals as part of its "Life Out Here" 2030 strategy. It also plans to expand into the business-to-business market and scale a retail media network.
The nation’s largest rural lifestyle retailer has increased its long-term store count goal to 3,200 locations, up from its previously announced target of 3,000. Tractor Supply expects to open 90 new namesake stores n 2025, along with and approximately 10 new Petsense by Tractor Supply stores.
Tractor Supply also updated its total addressable market to approximately $225 billion from $180 billion by 2023. It aims to achieve a net sales increase of 6% to 8% and comparable store sales growth of 3% to 5%. It expects earnings per share growth of 8% to 11%.
“Over the last five years, we have delivered strong financial performance and enhanced our competitive advantages through the execution of our Life Out Here strategy,” said Hal Lawton, president and CEO. “With an expanded total addressable market of $225 billion, we have significant runway for growth. Our Life Out Here 2030 strategy continues the momentum of our existing initiatives as well as launches new initiatives such as Pet Rx and direct dales. Tractor Supply has never been stronger and the next five years are going to be very exciting.”
[READ MORE: Tractor Supply to acquire online pet pharmacy; Q3 sales inch up]
Since introducing its Life Out Here strategy in October 2020, Tractor Supply has scaled its “project fusion” store layout and remodel program to about 50% of its stores, completed more than 550 garden centers, added 22 million members to its Neighbor’s Club loyalty program, grown its digital sales by more than 340% and opened 13 distribution facilities.
New initiatives
Tractor Supply is adding new initiatives to the strategy going forward, including:
- Tailoring product selection to meet specific demographic and regional needs to maximize relevance while remodeling store layout and adding updated features;
- Extending its customer service to address the “Out Here” business-to-business market including larger farms, small to medium businesses and event spaces;
- Scaling a media platform to support its brand partners and activate a new profit stream;
- Increasing penetration of private-label and exclusive licensed brands and creating a scalable final mile delivery solution; and
- Expanding capabilities to grow share of wallet with pet and animal customers while driving increased loyalty through its more than 37 million Neighbor’s Club members.
Tractor Supply also said its board approved a five-for-one stock split of the company’s issued common stock to make its stock more accessible to team members and investors. This represents the fifth stock split for Tractor Supply since it went public in 1994. (Tractor Supply employees may purchase shares of the company’s stock at a 15% discount through bi-weekly payroll deductions.)
As of Sept.r 28, the company operated 2,270 Tractor Supply stores in 49 states 205 Petsense by Tractor Supply stores in 23 states.
