Hardware Retailing The Industry's Source for Insights and Information
Rural lifestyle retailer Tractor Supply Co. has purchased a 136-location pet store chain for $116 million in cash.
Petsense, the pet supply and services company, will operate as a Tractor Supply subsidiary, according to Tractor Supply.
“The pet industry represents a $60 billion market driven by favorable pet ownership trends and the continued humanization of pets by their owners,” Tractor Supply president and CEO Greg Sandfort says. “We believe the pet specialty industry is an attractive expansion opportunity and, with 136 stores across 25 states, we think Petsense is an excellent complement to our Tractor Supply retail operations.”
Tractor Supply sells pet supplies from its rural lifestyle stores. However, the company had also been experimenting with more specialized pet product retail outlets. In 2014, the company began testing a store model called HomeTown Pet. Now, the company’s two pilot stores, located in Fairview and Franklin, Tennessee, will be converted to the Petsense brand.
“With Tractor Supply’s success in the pet category and the knowledge gained from our HomeTown Pet stores, we determined that the acquisition of an established, successful concept with a proven track record of growth would be the best way to capitalize on the opportunities in the pet market,” Sandfort says. “We believe the Petsense team’s expertise in growing smaller format pet specialty stores combined with our proven expertise in the category, as well as site selection and store growth, will enable us to accelerate the growth of our pet specialty retail business and enhance long-term shareholder value.”
The existing Petsense senior management team, which is headquartered in Scottsdale, Arizona, will continue to lead the company, which is headquartered in Scottsdale, Arizona. Tractor Supply has set a goal of growing the Petsense chain by 15 to 20 percent each year, according to the company.
