Home Center Company Snapshot: Tractor Supply Co.
200 Powell Pl.
Brentwood, TN 37002-7514
Total Store Count:
Total square footage:
Total Annual Sales:
$ 3,638,336,000; December 25, 2010
A top company in CSG’s database of Home Center Operators & Hardware Chains, Tractor Supply has stood out in this subprime beleaguered industry with its recession defying financial performance and continued aggressive expansion plans.
During the past decade Tractor Supply has never failed to record an increase in annual sales. These figures ranged from just over three quarters of a billion dollars in December, 2000 to exceed $3.6 billion as of December, 2010.
More impressive, over the past five years the company has grown its sales from just over $2 billion. This period essentially coincides with the early fallout from the subprime mess through the current roller coaster ride of the recession with the threat of a double dip. During this time of national, then international financial crises, Tractor Supply’s weakest annual sales increase was just over eleven percent, during fiscal 2008.
During this same challenging five year period the company grew its store base by over sixty eight percent, from 595 locations to 1001 by the end of fiscal 2010. During the first six months of fiscal 2011 the company added forty two units to its base and expects to add at least another thirty by year’s end.
Much of the credit for this success goes to the administration which preceded the current one and was headed by then CEO, the visionary Joe Scarlett. This group studied the national landscape to anticipate which directions presented unique opportunities which might take their company to higher levels. This produced a new target customer, the part-time or urban rancher. The company saw these consumers as affluent and underserved. Management worked with their then current and proposed customer bases to be certain their plans would succeed and they did.
The structure of the company and its stores were then adjusted to accommodate these plans. Of the many changes that emerged from these planning efforts, one considerable change came from merchandising, as the company added and promoted an expanded and enhanced line of apparel. Studying their customers really paid off here as a part of the new line quickly caught on with teens and became a popular family trend setter.
Tractor Supply is commonly seen as a leader in the Farm & Home segment of our industry. Overall this segment of our market has been the lone market success in the industry through the very trying economic times of recent years. As explained above, Tractor Supply has carefully analyzed the market and set upon a course to distinguish itself from even its most direct competitors.
By continuing to closely monitor all aspects of its progress, the company continues to tweak its merchandising as it develops its systematic expansion through strong planning in real estate. The current regime headed by CEO James Wright, has continued to advance its predecessor’s well thought out designs and continues to reap the rewards.