Tractor Supply Company TSCO has been expanding its footprint through aggressive store launch initiatives. Recently, the company introduced its 1,700th store in Mocksville, NC. The new store, which marks a milestone in the company's growth trajectory, will be located at 1029 Yadkinville Road, Suite 101. The gala opening of the store will be held on Apr 7, with multiple celebrations, participation of different community groups, pet adoption event, introductory meetings and more.
The company also progresses smoothly with its growth initiatives, which include expansion of store base and incorporation of technological advancements, to induce traffic and drive the top line. Additionally, Tractor Supply is on track with the integration of its physical and digital assets, through ONETractor initiative, to offer seamless and convenient shopping experience. Meanwhile, the company continues reaping significant benefits from its Buy Online Pick Up in Store program, besides expanding its Neighbor's Club customer rewards program. Tractor Supply expects long-term results to benefit from its mobile POS and stockyard initiatives as well. These factors clearly justify Tractor Supply's commitment toward enhancement of its omni-channel network.
Notably, this leading rural lifestyle products' retailer opened 101 flagship stores in 2017, converted two Hometown Pet Stores to Petsense stores and closed nine Del's stores. Further, it opened 25 new Petsense stores in the same year, including the aforementioned two conversions. In 2018, management intends to introduce 80 new outlets, in a bid to achieve its long-term domestic store growth target of 2,500 stores. As of Mar 31, 2018, Tractor Supply operated 1,700 namesake stores across 49 states with an e-commerce website.
In 2016, Tractor Supply acquired Petsense LLC - a leading specialty retailer of pet supplies and services - to fortify its presence in the flourishing pet specialty space. This acquisition is expected to grab roughly $60 billion pet market, which fittingly complements the company's existing pets business. In the meantime, the company seems to be progressing well with the integration of Petsense and plans to open about 20 new Petsense stores in 2018. As of Dec 30, 2017, Tractor Supply operated 168 Petsense stores in 26 states.
Tractor Supply is the largest operator of farm and ranch stores in the United States. It has a unique market niche of serving the lifestyle needs of recreational farmers and ranchers as well as tradesmen and small businesses. The company revamped itself by concentrating on square footage growth and maximizing productivity from its existing store base. Also, Tractor Supply implemented significant changes in its store operations to make them simpler and customer-friendly.
The Zacks Rank #3 (Hold) company's solid omni-channel efforts are paying off well. In the fourth quarter of 2017, Tractor Supply delivered an impressive performance, backed by solid comparable sales growth from its new stores.
However, these efforts are not enough to elevate the company's shares. In a year's time, the stock has lost 10.9%, narrower than the industry 's decline of 16.4%. On the flip side, players like KAR Auction Services, Inc. KAR , Five Below, Inc. FIVE and Build-A-Bear Workshop, Inc. BBW outperformed the industry in the said time frame. Shares of KAR Auction Services, Five Below and Build-A-Bear Workshop have rallied 30.2%, 69% and 3.5%, respectively.
While KAR Auction Services has a Zacks Rank #2 (Buy), Five Below and Build-A-Bear Workshop carry a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tractor Supply Company (TSCO): Free Stock Analysis Report
Build-A-Bear Workshop, Inc. (BBW): Free Stock Analysis Report
KAR Auction Services, Inc (KAR): Free Stock Analysis Report
Five Below, Inc. (FIVE): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc.