what is tractor supply company's growth strategy

Tractor Supply Company, or TSC, is a leading retailer of agricultural and rural lifestyle products in the US. Founded in 1938, the company has since grown to operate over 1,900 stores across 49 states. In recent years, TSC has achieved remarkable growth despite the challenging retail environment. This article aims to analyze TSC's growth strategy and explore how the company continues to expand its market share and increase revenue.

Diversification of Product Lines

TSC has made a significant effort to diversify its product lines to appeal to a broader customer base. In the early days, the company focused predominantly on agricultural necessities such as feed, seed, and fertilizer. However, in recent years, TSC has expanded its product offerings to include pet care products, home improvement tools, and apparel and footwear. By doing so, TSC has been able to draw in new customers who may not have previously shopped with the company. Additionally, this move has helped TSC reduce its dependency on agricultural commodities, which can be subject to seasonal fluctuations.

Expansion of Store Network

One of TSC's most notable growth strategies has been the expansion of its store network. In 2019 alone, TSC opened 80 new stores. The company plans to open a further 75 to 80 stores annually over the next five years. TSC typically locates its stores in rural areas, where farm and ranch retail demand is high. By doing so, TSC avoids direct competition from urban-focused retailers such as Walmart or Home Depot. Moreover, TSC's wide geographical spread protects it from regional economic downturns, enabling the company to rely on stable sales.

Enhancing Customer Experience

Another growth strategy has been to enhance the customer experience at TSC stores. The company has focused on improving store layouts and staffing, resulting in a more attractive and welcoming environment for customers. Additionally, TSC has invested in e-commerce capabilities, enabling customers to place orders online and either pick up or have their purchases delivered. This move has given TSC a way to reach customers who may not have access to physical stores or prefer the convenience of online shopping.

Acquisitions and Partnerships

TSC's growth strategy also involves acquisitions and partnerships to complement its existing offerings. In 2020, TSC acquired Orscheln Farm and Home, a retail chain that specializes in farm and ranch products. This acquisition significantly increased TSC's store network and expanded its product portfolio. In addition, TSC has partnered with manufacturers and suppliers to provide exclusive items, increasing the company's value proposition and differentiation from competitors.

Conclusion

In conclusion, TSC's multi-faceted growth strategy has proven successful in recent years. The company's focus on diversifying its product lines, expanding its store network, enhancing the customer experience, and pursuing strategic partnerships and acquisitions has enabled TSC to achieve remarkable growth while mitigating risks. As TSC continues to expand its market share, it will be interesting to see how the company responds to any changes in the retail landscape and maintains its momentum.