Tractor Supply Co. to Close 75 Petsense Stores
Tractor Supply Co. released its latest earnings report last week and revealed plans to close 75 Petsense locations around the country, reports Fox Business. The rural lifestyle retailer is closing dozens of pet stores in its portfolio around the country as it re-evaluates both its existing footprint and growth plans. Tractor Supply said in its release that as of late June there were 209 Petsense by Tractor Supply stores across 23 states.
"Following a disciplined review of Petsense, we've decided to close approximately 75 underperforming stores," said CEO Hal Lawton on the earnings call. "We believe these actions will improve returns, simplify the business, and allow us to direct resources towards higher growth, higher return opportunities."
Lawton noted that the Petsense locations that are closing were negative four-wall cash flow, meaning that those stores' sales weren't enough to cover costs that are local to individual stores, such as rent, labor and inventory.
Total Retail's Take: Tractor Supply is tweaking its pet business. Farm animal and household pet supplies are huge product categories for the retailer, which sells a substantial pet assortment in its core stores. Its pet ecosystem includes Petsense specialty retail stores, Allivet online pharmacy, and VIP Petcare veterinary services. Petsense is positioned to compete with other large pet chains such as PetSmart and Petco by offering a wide selection of household pet supplies and pet-specific services, which shoppers won't find in Tractor Supply stores.
Tractor Supply says it doesn't view the changes to its Petsense store fleet as affecting the continued growth of pet products within its core business. CFO Kurt Barton said on last week's earnings call that the "strategic repositioning of Petsense is expected to create a healthier, more profitable business that better complements our Tractor Supply stores and strengthens our ability to serve pet customers across our integrated pet ecosystem."
Lawton also said that after the closures he believes the company will "have a very strong, profitable Petsense business." Stemming the losses from closing locations will allow Tractor Supply Co. to reinvest funds back into the core of the business. The Petsense store closures are also not a reflection of the stability of Tractor Supply's core stores. The business still has plans to open approximately 90 new stores in 2027.
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Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
