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Tractor Supply has released its 2023 annual report, which shows the farm, pet and ranch retailer saw net sales increase 2.5% over 2022 to $14.56 billion. Comparable store sales were even with the prior year, while comparable store transaction size increased 0.4% and comparable store average transaction count decreased 0.4%.
The company attributes comparable store sales performance to continued strength in core year-round merchandise, including consumable, usable and edible (“C.U.E.”) products, which significantly outpaced the chain average. Tractor Supply also noted declines in demand for seasonal goods and big-ticket items.
“As we recently marked Tractor Supply’s milestone 85th anniversary, my thanks and appreciation go out to our more than 50,000 team members for their dedication,” says Hal Lawton, president and chief executive officer of Tractor Supply. “While our financial performance in 2023 did not meet our initial expectations, our team successfully navigated a highly dynamic environment with agility, operational resiliency and a focus on our strategic investments.”
Lawton noted the company’s customer engagement and satisfaction scores, as well as its supply chain and technology enhancements, as “proof points of the strength” for the business.
“In 2024, we will continue to invest to strengthen our competitive advantages and to capture the significant growth opportunities in our market,” Lawton says. “We believe that our business can continue to perform well in the coming years, given the investments we have made in our ‘Life Out Here’ strategy.”
Tractor Supply Product Categories as a Percent of Net Sales
Exclusive brands across the company’s core categories represented 29% of Tractor Supply’s total sales.
Tractor Supply noted a compounded annual growth rate for sales of approximately 13% over the last five years. The company has been growing within the last several years. In 2022, Tractor Supply acquired 81 Orscheln Farm and Home Stores, which have now all been rebranded to Tractor Supply operations. In the same year, the company opened an additional 63 new locations.
In 2023, Tractor Supply opened 70 new stores as well as its ninth distribution center in Navarre, Ohio. The company plans to open 80 new Tractor Supply locations in 2024 along with 10 to 15 new Petsense by Tractor Supply stores. The company’s 10th distribution center is anticipated to open in Maumelle, Arkansas, in the second quarter of 2024.
According to the report, 81% of the Tractor Supply merchandise flows through its distribution centers to stores, while the remainder is shipped directly from vendors to stores or customers.
At the end of 2023, Tractor Supply operated 2,414 retail stores in 49 states, including 198 PetSense by Tractor Supply stores.
