Tractor Supply Company TSCO is on track with its efforts to fortify its presence in the pet and animal businesses. As part of these efforts, the company has expanded its pet product line with the addition of VICTOR Super Premium Pet Food (“VICTOR”) brand into its quality dog food range.
This follows the introduction of VICTOR’s top-performing products, Hi-Pro Plus, to all stores in July. This makes Tractor Supply the first retailer in the United States to feature a diverse range of formulas within the dog food product line.
Notably, VICTOR Super Premium Pet Food is one of the best dry foods for dogs, providing a complete and balanced diet. It has a proprietary blend of four core ingredients — selenium yeast, mineral complexes, prebiotics and probiotics. The ingredients work to support the metabolism, digestion and immune defense system of dogs. The brand’s products are made at its Texas-based facility.
The introduction of this renowned brand in its dog food line undermines Tractor Supply’s efforts to capitalize on the recent spike in pet adoption trends. On its lastearnings call the company noted that pet adoptions are at an all-time high, which also bolstered its results due to higher demand for pet food.
The coronavirus pandemic has been changing everything from shopping modes to working styles. Amid these, there has also been a drastic shift from other interests like travel, entertainment and dining. New interests like home studying, land maintenance and fencing, backyard living, and caring for their pets are gaining prominence as people adapt to the stay-at-home trend.
To gain from the rising pet adoption trend, Tractor Supply has been keen on making pet supply resets as well as ensuring product availability. This helped deliver strong results at Petsense stores in the last reported quarter.
Apart from the pet business, the company is on track to build on Tractor Supply’s Out Here lifestyle assortment and convenient shopping format to gain new customers and market share. Additionally, the company launched the Field Activity Support Team (“FAST”) and is implementing various technology and service enhancements across the enterprise. It is also in the initial phase of transforming its side lots and mature stores to improve space productivity, bringing the latest merchandising strategies to life and advancing efforts to remain nationally strong and locally relevant.
Driven by these, the Zacks Rank #3 (Hold) company has been witnessing continued demand across its product categories, channels and geographic regions. Moreover, its online business is performing well, driven by higher demand, as customers are opting for the newly launched contactless curbside delivery as well as buy online, pickup at store options. Also, its redesigned e-commerce website along with a new mobile application is likely to aid online growth.
Gains from its sound fundamentals are also well reflected in its price performance. Notably, the stock has advanced 38.1% in the past three months compared with the industry’s growth of 17.4%.
The stock has also comfortably outperformed the Retail-Wholesale sector and the S&P 500 index, which have gained 24.2% and 13.3%, respectively, in the past three months. Further, the stock is hovering close to its 52-week high of $155.25.
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