Tractor Supply Company TSCO has been gaining from its solid omni-channel efforts including store expansion and incorporation of technological advancements. Furthermore, the company targets integration of physical and digital operations for providing a seamless shopping experience to consumers through the “ONETractor” initiative.
Currently, the company is reaping significant benefits from its Buy Online Pick Up in Store program. In first-quarter 2019, this leading retail farm and ranch store chain reported robust double-digit e-commerce sales growth for the 27th straight quarter.
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In a bid to cope up with changing consumer trends, Tractor Supply remains focused on expanding its stockyard in-store kiosk and enhancing mobile POS technologies, which are likely to generate incremental sales. Also, the company continues to expand its Neighbor’s Club loyalty program, surpassing its targeted membership growth goals in 2018.
With respect to expansion of store base, Tractor Supply leverages an extensive network of stores to penetrate into target markets. This, in turn, enables the company to generate incremental sales and gain market share. Markedly, the company is well positioned to increase its domestic store to 2,500 in the long term. In first-quarter 2019, it opened 10 namesake stores and expects to introduce about 80 namesake stores this year.
Furthermore, Tractor Supply has completed system and process integration of the Petsense acquisition during 2018 by applying the best practices from Tractor Supply to Petsense. In 2016, Tractor Supply acquired Petsense LLC — a leading specialty retailer of pet supplies and services — to reinforce its foothold in the flourishing pet specialty space. The company is now focused on expanding the Petsense format in certain geographic markets. Additionally, the Petsense stores focus on building long-term customer loyalty by using digital marketing methods to engage customers, revamping the website and enhancing customer rewards program. Tractor Supply intends to open nearly 10-15 Petsense stores in 2019.
Although Tractor Supply remains committed toward strengthening its business, higher cost of investments on infrastructure and technology remain a concern. Nevertheless, all these aforementioned efforts are likely to continue driving the company’s top and bottom lines.
Notably, Tractor Supply, which shares space with Build-A-Bear Workshop, Inc. BBW, Calyxt, Inc. CLXT and Bed Bath & Beyond Inc. BBBY, is experiencing broad-based sales growth across its unique business model. Additionally, comparable store sales are gaining from improvement across all geographic regions and major product categories as well as strength in everyday merchandise groups.
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