Tractor Supply is continuing its plan of growth with an announcement to add 500 more stores to its existing footprint of 1,900 units. This retailer has been around for over 80 years and caters to a very niche customer. The average store generates approx. $257 per square foot when compared to Macy’s at $195 per square foot.
No doubt this is a strong company with profits growing by approx. 9% per year on average since 2012. They have embraced the omnichannel approach, gearing up their engine with a new modern website which incorporates click and collect shopping at their physical stores and an instructional video platform with discussions on rural topics such as beekeeping, deer-feeding and horse grooming. This has worked well to bring the physical and digital sides of their business together.
Tractor Supply is a very strong retailer and is a great tenant for shopping center landlords in more rural markets, many times serving as the anchor tenant for their properties. They serve a very niche customer that values going to a physical store and talking to someone. TSC has had 9% growth YOY since 2012 and averages approx. $257 per square foot in sales. Moving into the future they have growth plans of 500 units over the next 10 years.
Their customer is typically a landowner that keeps pets, raises chickens and drives a pickup with many owning professional farming operations. These consumers are not DIY customers that cater to the likes of Home Depot or Lowes, they know what they are doing and need to go to a store that carry’s all the items required. The employees that work at TSC are not traditional. They are very much so like the customers that shop at the store, farming expertise and welcoming the lifestyle concept has been critical to the chain’s success.
This retailer is essentially Amazon proof and has done a great job to change and embrace omnichannel to best serve its customers and to position itself for long term success in its space.