Tractor Supply Sees Sales Boost From ‘Needs-Based’ Shoppers

Tractor Supply Company says consumers’ embrace of its “needs-based” offerings delivered strong sales in 2022.

The rural lifestyle retailer released earnings Thursday (Jan. 26) showing total quarterly sales of $4 billion, up 20.7% from the final quarter of the prior year, and $14.2 billion for the year, an 11.6% increase.

“Tractor Supply’s needs-based, demand-driven business model has stood the test of time with consistent and sustainable growth,” CEO Hal Lawton said in a news release.

“With a solid foundation, we plan to build on our momentum in 2023. We believe we have the right strategies to manage through the near-term and to deliver long-term compounding growth and value creation.”

The release says Tractor Supply expects sales of $15.0 billion to $15.3 billion for this year, with comparable store sales up 3.5% to 5.5%.

The 85-year-old Tennessee company noted a number of milestones from the past year, including the opening of 63 new Tractor Supply stores and nine new Petsense locations, the retailer’s pet-centric project. The company has 2,016 stores, according to its website.

Lawton said the brand’s Neighbors Club rewards program continues to grow as well, with membership up 47% over the past two years to include 28 million consumers.

October saw the company finalize its $238 million purchase of Orscheln Farm and Home, with 81 stores that will be rebranded as Tractor Supply locations by the end of this year.

The company had credited “needs-based” consumers for strong sales in July and again in October, with Lawton projecting Tractor Supply would see an ongoing boost from rural revitalization, homesteading and self-reliance and pet ownership.

Recent reporting by PYMNTS shows a number of retailers seeing the effects of consumers focusing on necessities.

For example, healthcare giant Johnson & Johnson said Monday (Jan. 24) it was seeing competition from lower-priced alternatives to its products.

As noted here earlier this week, this is a sign that even things like medical expenses aren’t immune to the trend of consumers trading down for lower-cost options.

PYMNTS’ study, “Consumer Inflation Sentiment: Consumers Buckle Down on Belt-Tightening,” based on a survey of more than 2,600 consumers, showed that 40% of shoppers had purchased lower quality retail products to help cut back on their spending, while 37% had opted for lower quality grocery items.

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