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Tractor Supply Company

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Tractor Supply Company
Company typePublic
IndustryRetail
Founded1938; 86 years ago (1938)
Chicago, Illinois, U.S.
FounderCharles Schmidt
Headquarters
Brentwood, Tennessee
,
U.S.
Number of locations
2,200 (2023)[1]
Area served
49 U.S. states[2]
Key people
Hal Lawton - President and CEO
ProductsClothing & footwear, dog, cat & pet supplies, trailers & accessories, lawn and garden supplies, propane & heating supplies, tools & gun safes, fencing, welders & welding supplies, lawn mowers & power generators, etc
RevenueIncreaseUS$ 12.731 billion (2021)[1]
IncreaseUS$ 1,306.7 million (2021)
IncreaseUS$ 997.1 million (2021)
Total assetsIncreaseUS$ 7.767 billion (2021)
Total equityIncreaseUS$ 2.003 billion (2021)
Number of employees
46,000[1] (2021)
Websitetractorsupply.com

Tractor Supply Company (also known as TSCO or TSC), founded in 1938, is an American retail chain of stores that sells products for home improvement, agriculture, lawn and garden maintenance, livestock, equine and pet care for recreational farmers and ranchers, pet owners, and landowners. The company has 2,000 stores and is headquartered in Brentwood, Tennessee. It is publicly traded on the NASDAQ under the ticker symbol TSCO and is a Fortune 500 company.

Exterior of a Tractor Supply Company store
Interior of a Tractor Supply Company store
Interior of a Tractor Supply Company store
Interior of a Tractor Supply Company store in East Tawas, Michigan.
A Tractor Supply Co. location in Springboro, Ohio

History

1938–1998

Charles Schmidt founded Tractor Supply Company in Chicago in 1938 as a mail-order catalog that sold tractor parts to working farms.[3][4] The first retail store was founded in 1939 in Minot, North Dakota. From 1941 to 1946, the company opened stores in Nebraska, Minnesota and Iowa.[3][5][6]

On January 14, 1959, Tractor Supply became publicly traded on the Over-The-Counter Market and reached $10 million in sales.[7][8] The company was later traded on the New York Stock Exchange.[8]

In 1967, TSC opened its first international stores in Canada.[8] Two years later, Schmidt sold his controlling interest in the company to National Industries.[8] This and other factors, such as changing executive leadership and adding inventory that strayed from its traditional categories, led to a few years of losses for the company.[8] In 1979, the company moved to Nashville, Tennessee.[4] In 1982, Tractor Supply put ownership of the company back in the hands of executives and returned to their farm-store niche, resulting in a break-even year.[8] The company was incorporated in Delaware that year.[8]

On February 17, 1994, the company went public on the NASDAQ under the ticker symbol TSCO.[7]

1998–2003

Over time, Tractor Supply expanded to also serve hobbyist farmers, such as families living in the suburbs with an interest in gardening and livestock.[3][9] In 2002, the company earned $1.21 billion.[10]

2004–2019

Just two years later, in 2004, the company reported revenues of more than $1.7 billion and Fortune magazine named Tractor Supply to its list of the 100 fastest growing businesses.[11] That year, Tractor Supply moved its headquarters to Brentwood, Tennessee.[12] Jim Wright served as the CEO from 2004 to 2013.[13] He was replaced by Gregory Sandfort.[13]

In 2014, Tractor Supply made it on the Fortune 500 list.[14] On March 31, 2018, the company opened its 1700th store.[7] On September 4, 2018, the company celebrated its 80th anniversary by ringing the closing bell at the NASDAQ Stock Exchange in New York.[7]

2020–present

TSC's 1,900th store opened in September 2020. By December, the company had 1,923 stores in 49 states.[15] By October 2021, there were 1,967 stores in 49 states.[16] Hal Lawton became CEO in 2020.[3] That year, the company received a Great Place to Work certification.[17]

During the COVID-19 pandemic, Tractor Supply was deemed an essential business and remained open.[3] The company saw revenue grow 27 percent as more people turned to gardening and pet and livestock ownership.[3][18] That year, it also established the Tractor Supply Company Foundation.[19]

In 2021, Tractor Supply reached #291 on the Fortune 500 list and had over 20 million members in its loyalty program, Neighbor's Club.[20][3] TSC is the largest retail ranch and farm store operator in the U.S.[21][22]

On Oct 11, 2022, Tractor Supply received clearance from the FTC to close on its acquisition of Orscheln Farm & Home.[23] In order to mitigate federal anti-trust concerns, Tractor Supply sold 73 Orscheln stores and the Orscheln distribution center in Moberly, Missouri, to Bomgaars, and 12 stores were sold to Missouri-based farm store chain Buchheit.[24]

Products

Tractor Supply carries between 15,500 and 20,000 products in store, including work and recreational clothing, lawn and garden tools, home goods, fencing, truck beds, chicken coops, pet food, and feed for farm animals.[25][26] Around 15 percent of in-store products are unique to the store's region.[27] Online, the company offers thirteen product categories and sells between 125,000 and 150,000 products.[26]

In 2020, the livestock and pet products category accounted for 47 percent of the company's sales.[28] Two categories tied for second-highest sales with 21 percent each: hardware, tools, truck and towing products; and seasonal products such as lawn and garden equipment, gifts, and toys. They were followed by clothing and footwear with 7 percent and agricultural products with 4 percent of sales.[28] Tractor Supply's exclusive brands represented 29 percent of their total sales in 2021.[29]

Exclusive brands

Tractor Supply's exclusive brands include:[30][31][32][29]

  • 4health[33]
  • Red Shed
  • CountyLine
  • Retriever
  • Ridgecut[34][35]
  • Blue Mountain[34]
  • American Farm Works
  • Barn Star
  • Bit & Bridle
  • C.E. Schmidt Workwear
  • Red Stone
  • Producer's Pride
  • Job Smart
  • Paws & Claws
  • Traveller
  • Treeline
  • Pet Vet Clinic[36]
  • Tractor Supply Co Rx

Operation

Marketing

Tractor Supply's mission statement is: "To work hard, have fun and make money by providing legendary service and great products at everyday low prices."[37] In the mid-2000s, Tractor Supply conducted advertising campaigns featuring the slogan "The Stuff You Need Out Here."[11] The company's tagline later became “For Life Out Here.”[8]

From 1998 to 2002, George Strait was the spokesman for Tractor Supply.[10]

In 2020, Tractor Supply was a sponsor of the NBA.[38] In 2021, the company became a corporate sponsor of PBR.[39]

Distribution centers

Tractor Supply has eight distribution centers:

In 2021, the company broke ground on its ninth distribution center which will be located in Navarre, Ohio.[40]

Corporate affairs

Philanthropy

The company has been a sponsor for 4-H since 2010.[41] In the fall of 2021, Tractor Supply raised $1.3 million for 4-H members through their Paper Clover campaign.[42] In 2016, the company started its Grants for Growing program to raise money for FFA students.[43] In 2021, the company raised $790,269.[43]

In 2019, Tractor Supply started working with the MuttNation Foundation, a nonprofit founded by Miranda Lambert that helps shelter pets. The foundation is supported by proceeds from MuttNation's line of pet products sold by Tractor Supply.[44][45][46]

In 2020, Tractor Supply joined Land O'Lakes, Microsoft and others in the American Connection Project to support rural broadband access.[47][48]

Environmental initiatives

In 2017, all TSC stores were outfitted with LED lighting.[49] In 2021, the company was named to Investor Business Daily's 100 Best ESG Companies.[50] In December 2021, the company joined the U.S. Environmental Protection Agency’s Green Power Partnership.[51] TSC has committed to net zero carbon emissions by 2040.[52]

Acquisitions and subsidiaries

In 2002, Tractor Supply was part of a group (also including four liquidation firms) that purchased some of the leases of the bankrupt Quality Stores, Inc.,[53] a Michigan-based company. The company operated over 300 stores in 30 states under the names CT Farm & Country; Country General; Quality Farm & Fleet; County Post; Central Farm and Fleet, and FISCO. In September 2016, Tractor Supply acquired Petsense, LLC, a small-box specialty retailer of pet supplies primarily located in small and mid-size communities.[54] In February 2021, the company announced that it would acquire Orscheln Farm & Home for $297 million.[55]

Tractor Supply also owns Del's Feed & Farm Supply, a former farm retail chain in the Pacific Northwest and Hawaii,[56] with all but two Del's stores having been converted into Tractor Supply stores.[57]

Maternity litigation

A lawsuit filed against the company by former employee Melissa Douglas claims the company violated the Americans with Disabilities Act when it refused to offer her modified work duties while she was pregnant.[58]

TSC Stores L.P. (Canada)

In November 1966, TSC opened its first Canadian location in London, Ontario. The Canadian stores have not been affiliated with the U.S. operation of TSC since 1987, when the American parent company sold these locations to Toronto-based Birch Hill Equity Partners. In July 2016, Peavey Mart acquired a controlling stake in TSC, and later acquired the company outright. The company subsequently converted TSC's Canadian stores to the Peavey Mart banner.[59][60][61]

References

  1. ^ a b c https://d18rn0p25nwr6d.cloudfront.net/CIK-0000916365/70ab3ce7-b19d-42e8-885c-5f13a8936b35.pdf [bare URL PDF]
  2. ^ Pulman, Alecia; Fraser, Brittany (October 28, 2014). "Tractor Supply Company Enters Utah Market". MarketWatch. Retrieved June 24, 2019.
  3. ^ a b c d e f g "How poultry and a pandemic put Tractor Supply ahead of the pack". Fortune. Retrieved 2021-10-20.
  4. ^ a b Miller, Karin. "Tractor Supply Co. Has Big Appeal for Self-Sufficient Customers". The Ledger. Associated Press. Retrieved 2021-10-20.
  5. ^ Kytonen, Rachel (30 November 2011). "Tractor Supply Company coming to Cambridge". hometownsource.com. Retrieved 2021-10-20.
  6. ^ "Creston Tractor Supply Company to hold grand opening Saturday". Creston News. 18 August 2016. Retrieved 2021-10-20.
  7. ^ a b c d "Tractor Supply celebrates 80th anniversary with Nasdaq closing bell". Beef Magazine. 2018-09-05. Retrieved 2021-12-29.
  8. ^ a b c d e f g h "A 360-Degree View of Tractor Supply Company". Hardware Retailing. 2015-05-27. Retrieved 2021-10-25.
  9. ^ Hanbury, Mary. "Millennials ditching cities for the US countryside are boosting sales at rural businesses, the CEO of a $22 billion agriculture retailer says". Business Insider. Retrieved 2021-10-30.
  10. ^ a b Fox, David A. (24 January 2003). "Tractor Supply 4th-qtr. results up; Goodbye to spokesman George and other conference call notes". Nashville Post. Retrieved 2021-10-25.
  11. ^ a b Rhoades, Emily B.; Irani, Tracy (2008). ""The Stuff You Need Out Here": A Semiotic CaseStudy Analysis of an Agricultural Company's Advertisements". Journal of Applied Communication Research. Retrieved June 24, 2019.
  12. ^ Walsh, David (8 October 2014). "Tractor supply opens new corporate headquarters". Williamson Home Page. Retrieved 2021-11-11.
  13. ^ a b "Tractor Supply CEO to step down in 2013". HBS Dealer. Retrieved 2021-11-07.
  14. ^ Williams, G. Chambers III. "Tractor Supply lands on Fortune 500 list for first time". The Tennessean. Retrieved 2021-11-11.
  15. ^ "Tractor Supply acquires 167-store Orscheln Farm and Home". Chain Store Age. Retrieved 2021-11-28.
  16. ^ "Tractor Supply boasts 22M loyalty members, many of them young and spending money". Retail Dive. Retrieved 2021-11-28.
  17. ^ "Tractor Supply earns 2021 Great Place to Work certification". LBM Journal. 2021-08-11. Retrieved 2022-01-31.
  18. ^ Fontanella-Khan, James (2020-05-02). "Americans embrace country lifestyle under lockdown". Financial Times. Retrieved 2021-10-30.
  19. ^ Serie, Kathleen (2020-04-09). "Tractor Supply Company gives hourly employees $2 raise, hires workers during pandemic". WZTV. Retrieved 2021-11-11.
  20. ^ Salazar, David (2021-04-08). "Tractor Supply rolls out new Neighbor's Club loyalty features". Store Brands. Retrieved 2022-02-14.
  21. ^ Townsend, Will. "Connectivity Powers Tractor Supply Company's Success". Forbes. Retrieved 2021-12-29.
  22. ^ "Here's How Much You'd Have If You Invested $1000 in Tractor Supply a Decade Ago". Nasdaq. September 24, 2021.
  23. ^ "FTC Approves Consent Order Addressing Concerns Over Tractor Supply's Acquisition of Orscheln Farm and Home". Federal Trade Commission. 2022-10-11. Retrieved 2022-10-18.
  24. ^ "Acquisition makes Bomgaars second largest farm retailer in U.S." AgriNews/The Associated Press. October 31, 2022. Retrieved October 31, 2022.
  25. ^ Meyersohn, Nathaniel (28 April 2021). "Chicken coops for everyone: A rural chain is thriving as millennials flee cities". CNN. Retrieved 2021-11-15.
  26. ^ a b "How poultry and a pandemic put Tractor Supply ahead of the pack". Fortune. Retrieved 2021-11-15.
  27. ^ "The Retail Apocalypse Can't Keep Tractor Supply Co. Down". Bloomberg. 17 October 2018. Retrieved 2021-12-29.
  28. ^ a b Tractor Supply Company. "Form 10-K For the fiscal year ended December 26, 2020" (PDF).
  29. ^ a b "Form 10-K" (PDF).
  30. ^ "Tractor Supply Company TSCO.O". Reuters. Retrieved 2022-03-13.
  31. ^ "Tractor Supply Company (TSCO) - Great Business, But Overvalued At 27X P/E". seekingalpha.com. 6 December 2021. Retrieved 2022-03-13.
  32. ^ "Here's How Much You'd Have If You Invested $1000 in Tractor Supply a Decade Ago". Nasdaq. 2021-09-24.
  33. ^ Ochwat, Dan (2021-10-21). "Tractor Supply Company is on a roll". Store Brands. Retrieved 2022-03-13.
  34. ^ a b Alfs, Lizzy. "Tractor Supply launches new 'Toughwear' clothing line". The Tennessean. Retrieved 2022-03-13.
  35. ^ "Tractor Supply takes on the elements with new Ridgecut Toughwear clothing". AGDAILY. 2019-08-14. Retrieved 2022-03-13.
  36. ^ Collings, Richard (2021-02-12). "Tractor Supply Looks Beyond Farms to Woo Pet Parents". AdWeek. Retrieved 2022-03-13.
  37. ^ "Tractor Supply Company - Company Overview - Mission and Values". corporate.tractorsupply.com.
  38. ^ "Tractor Supply wanted more fans, so it teamed up with the NBA". Nashville Business Journal. Retrieved 2021-12-20.
  39. ^ "PBR brings on Tractor Supply as corporate sponsor". sportsbusinessjournal.com. 16 July 2021. Retrieved 2021-12-20.
  40. ^ "Tractor Supply Co. Breaks Ground for New Distribution Center in Stark County". WKSU. 2021-06-17. Retrieved 2022-01-09.
  41. ^ "Tractor Supply begins Spring Paper Clover campaign". AGDAILY. 2021-04-30. Retrieved 2021-12-20.
  42. ^ "Tractor Supply Paper Clover campaign raises $1.3 million". HBS Dealer. Retrieved 2022-01-03.
  43. ^ a b "Tractor Supply Company Raises $790,269 for FFA Grants for Growing Program". AllOnGeorgia. 2021-03-17. Retrieved 2021-12-20.
  44. ^ Nicholson, Jessica (2021-03-11). "Miranda Lambert's MuttNation Foundation Donates $250K to Animal Shelters". CMT News. Retrieved 2021-12-20.
  45. ^ Leimkuehler, Matthew. "Miranda Lambert's MuttNation helps 'a whole lot of mutts' with $250,000 donation". The Tennessean. Retrieved 2021-12-20.
  46. ^ "Miranda Lambert Announces Partnership With Tractor Supply Company and Her MuttNation Foundation". Country Music. Retrieved 2021-12-20.
  47. ^ Oprysko, Caitlin (2 July 2021). "Why a butter company is lobbying on broadband access". POLITICO. Retrieved 2022-02-07.
  48. ^ Maixner, Ed (2021-03-03). "One year later: COVID-19 and its rural broadband impact". agri-pulse.com. Retrieved 2022-02-07.
  49. ^ "Tractor Supply goes all in for LEDs". Chain Store Age. 2018-05-25. Retrieved 2022-01-28.
  50. ^ "Who Joins Nvidia, Apple On List Of The 100 Best ESG Stocks?". Investor's Business Daily. 2021-11-10. Retrieved 2022-03-06.
  51. ^ Carlo, Andy (2021-12-09). "Tractor Supply's growing green power efforts". HBS Dealer. Retrieved 2022-02-20.
  52. ^ "How Tractor Supply General Counsel Noni Ellison Drives ESG Efforts". Corporate Counsel. Retrieved 2022-02-28.
  53. ^ Forrester, Brian (May 13, 2002). "Tractor Supply plows Quality row to growth". Nashville Business Journal. Retrieved June 24, 2019.
  54. ^ "Tractor Supply Company Announces Acquisition of Petsense, a Growth-Oriented Pet Specialty Retailer With 136 Stores". Yahoo! Finance. September 29, 2016. Retrieved June 24, 2019.
  55. ^ Garcia, Tonya (February 17, 2021). "Tractor Supply acquires Orscheln Farm and Home in $297M cash transaction". MarketWatch. Retrieved February 20, 2021.
  56. ^ "Del's Feed and Farm Supply". Tractor Supply. Retrieved June 24, 2019.
  57. ^ "Tractor Supply Company - Company Overview". corporate.tractorsupply.com.
  58. ^ Mayfield, Cedra (June 17, 2021). "'Resign and Come Back After You Have Your Baby': Employment Suit Tests Benefits Eligibility". Daily Report. Retrieved 2021-06-19.
  59. ^ "Peavey Mart: Growth and expansion on the back of creativity and hard work". Retail Council of Canada. 2020-11-10. Retrieved 2021-12-19.
  60. ^ McLarney, Michael (18 July 2016). "Peavey to acquire TSC Stores". Hardlines. Retrieved 8 January 2017.
  61. ^ "Cornwall TSC Stores to become Peavey Mart". Cornwall Newswatch. Retrieved 2021-12-19.

Further reading

  • Eddy, Nelson (2004). Work hard, have fun, make money: the Tractor Supply story. Brentwood, Tenn.: Tractor Supply Co. ISBN 0976106604.
Wikimedia Commons has media related to Tractor Supply Company.
  • Official website
  • Business data for Tractor Supply Company:
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