Tractor Supply Opens 1,800th Store, Growth Plans on Track
Tractor Supply Company TSCO is consistently making efforts to expand store base and incorporate technological advancements. With regard to store-growth endeavors, the company opened its 1,800th store in Berkshire Township (Sunbury), OH.
The new store, which marks a milestone in the company's growth trajectory, is the 93rd flagship outlet in the state. This store opening highlights the company’s smooth progress on its ONETractor initiative. Moreover, the company remains on track with its long-term growth targets.
The latest store opening also illustrates that Tractor Supply is well-positioned to expand store base. It is on track to increase its domestic store count to 2,500 in the long term. In the first six months of 2019, Tractor Supply opened 25 namesake stores and two Petsense stores. This year, the company expects to open about 80 namesake and 10-15 Petsense stores.
Tractor Supply leverages an extensive network of stores to penetrate into target markets, which in turn, enables it to generate higher sales and gain market share. Moreover, the company expects to drive the top and bottom lines by improving marketing and merchandising initiatives as well as its supply chain efficiencies. Store expansion is likely to keep Tractor Supply’s sales momentum alive throughout 2019 and beyond.
Given the changing consumer trends, Tractor Supply remains focused on integrating its physical and digital operations through ONETractor strategy to offer consumers a seamless shopping experience. Backed by this initiative, the company continues to drive growth, build customer-centric engagement, offer suitable products and services, and reinforce core infrastructure capabilities.
Moreover, Tractor Supply is reaping benefits from its mobile point-of-sale and Buy Online Pick Up in Store capabilities. The company is also consistently expanding its Neighbor’s Club loyalty program, which outpaced its targeted membership growth goals in 2018.
Impressively, in second-quarter 2019, the company reported double-digit e-commerce sales growth for the 28th straight quarter. Tractor Supply’s steady efforts to expand its Stockyard kiosk initiatives are an added positive. Management expects all these strategies to play a major role in enhancing the company’s omni-channel network.
In the flourishing pet specialty space, Tractor Supply has fortified its presence with the Petsense buyout. Currently, the company is focused on expanding the Petsense format in certain geographic markets.
Petsense stores have been delivering positive comparable-store sales (comps), which continued in the second quarter and were in line with the company’s average. The Petsense stores remain focused on building long-term customer loyalty by using digital marketing methods to engage customers, revamp the website and enhance customer rewards program.
A glance at the company’s price trend shows that it has outperformed the industry so far this year backed by the aforesaid efforts. This Zacks Rank #3 (Hold) stock has gained 22.9% compared with the industry’s 17.4% rally.
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