Tractor Supply Plows Ahead With Fruitful Strategic Initiatives, Driving Growth and Loyalty

Tractor Supply is the largest consumer farm specialty retailer in the United States, set to achieve $15 billion in sales in fiscal 2023. The firm has differentiated itself through its products and customer demographics, which provide underlying support to its brand intangible assets and narrow economic moat. At the end of 2022, the store base had grown about 27% over the prior five-year period, to more than 2,300 locations, including 81 acquired locations from Orscheln and Petsense, driving sales and EPS compound annual growth rates over the past three years of 19% and 28%, respectively. We forecast that the firm will grow to over 3,000 stores by 2032 as it populates big-box centers in the western half of the U.S., with Petsense accounting for about 290 units.