Tractor Supply accelerates expansion plans
Author: DSN Retailing Today

AUSTIN, TEXAS -- Aggressive store expansion, supply chain efficiencies and new merchandising initiatives to drive comparable-store sales are among the priorities at Tractor Supply Company as it moves toward becoming a national chain.

With 462 stores in 30 states now and sales projected this year at $1.4 billion, the retailer forecasts by 2006 it will grow to 650 stores generating $2.2 billion.

The nation's largest farm and ranch retailer will open 52 stores next year, equating to an 11% growth rate, accelerating that rate to 13% by 2006. While most of these new locations will be in existing markets, Tractor Supply will open its first stores in California next year and concentrate heavily on expansion in the Northeast.

These were among the growth initiatives unveiled by Tractor Supply executives during a Webcast investor conference it sponsored Oct. 17 in Austin, Texas. Tractor Supply, a 65-year-old retailer based in Nashville, Tenn., has grown at a fast clip since its purchase of bankrupt rival Quality Stores in late 2001. The addition of 87 Quality Stores locations propelled Tractor Supply past $1 billion in sales last year, and with sales and earnings on a positive trend upward, the company has hiked its square footage expansion rate from the previous range of 8% to 10%.

Sales are expected to increase at least 17% to $1.41 billion this year, with net income rising 43% or more. Through the first three quarters, comparable-store sales have risen 6%, while in the third quarter, an impressive 13.7% gain was reported.