I went to Tractor Supply and saw why Wall Street loves the rural retailer, but I wasn't convinced of its appeal to millennial and Gen Z shoppers

Dominick ReuterMay 14, 2023, 16:01 IST

Tractor Supply Co. owns more than 2,300 locations in 49 states.Dominick Reuter/Insider

Tractor Supply Co. is an 85-year-old rural retailer that has recently become a Wall Street favorite.
It owns more than 2,300 midsize stores in rural and suburban areas across the US, and sales are booming.

Tractor Supply Co. has recently become a darling of Wall Street investors attracted to solid sales growth, healthy profits, and a bright outlook.

The retailer started as a mail order catalog business in 1938. It now has more than 2,300 midsize stores in suburban and rural communities across the US, selling pet and livestock supplies, gardening tools, apparel, and other products you might have once found in a small town's general store.

CEO Hal Lawton credits the recent sales boom to millennials fleeing from cities to the countryside, but a visit to the store suggests the brand is targeting — and winning — older, wealthier customers.

Insider went to a Tractor Supply Co. location in Wisconsin and found a store that specializes in selling sensibly priced stuff for people with expensive hobbies.

The first thing that stood out about Tractor Supply was the relatively small size of the store – it feels more like an Ace Hardware than a Lowe's.

Dominick Reuter/Insider

In spite of the smaller scale, the store makes highly efficient use of floor space. Neat merchandise displays seem to occupy every square inch that can be safely used.

Dominick Reuter/Insider

Shoppers are greeted at the entrance with displays of low-cost impulse buys, like these toy cars...

Dominick Reuter/Insider

... novelty hunting knives and tools...

Dominick Reuter/Insider

... stuffed animals, and greeting cards with decidedly boomer humor.

Dominick Reuter/Insider

Toward the rear of the store, rural lifestyle magazines keep shoppers up to date on their interests, from gardening to guns to fishing.

Dominick Reuter/Insider

Shoppers can also wear their hobbies and political views on their sleeve – or on their chest – with a collection of printed T-shirts.

Dominick Reuter/Insider

Most of the apparel is more restrained to an All-American aesthetic of muted blues, grays, and earth tones.

Dominick Reuter/Insider

If middle America has a uniform, you can get it at Tractor Supply.

Dominick Reuter/Insider

Wrangler or Carhartt: Take your pick.

Dominick Reuter/Insider

Saddle up with a pair of cowboy boots...

Dominick Reuter/Insider

... and grab a snapback mesh baseball cap to complete the look.

Dominick Reuter/Insider

A growing chunk of the company's sales comes from online orders, which makes sense, as CEO Hal Lawton was once in charge of Home Depot's online business.

Dominick Reuter/Insider

In spite of its name, Tractor Supply Co. in fact gets the largest share of its revenue from livestock and pet supplies and services.

Dominick Reuter/Insider

The animal-care segment brings in half of total sales, and is growing.

Dominick Reuter/Insider

Throughout the store, the company offers a mix of national brands (like Kong and Chuck It dog toys) and privately owned labels, which represent nearly a third of revenue.

Dominick Reuter/Insider

Throughout the store, the company offers a mix of national brands (like Kong and Chuck It dog toys) and privately owned labels, which represent nearly a third of revenue.

The company also is making a concerted effort to drive more sales toward products it refers to with the acronym "CUE" for consumable, usable, and edible, like pet and livestock food and bedding material.

Dominick Reuter/Insider

The company also is making a concerted effort to drive more sales toward products it refers to with the acronym "CUE" for consumable, usable, and edible, like pet and livestock food and bedding material.

And most locations feature a pet washing station.

Dominick Reuter/Insider

Beyond dogs and cats, owners of horses, cows, and poultry can find what they need to keep their animals well-fed...

Dominick Reuter/Insider

... healthy...

Dominick Reuter/Insider

... and comfortable.

Dominick Reuter/Insider

The company refers to some of its customers as "recreational ranchers"...

Dominick Reuter/Insider

... and you can get a plastic bull's head to put on a bale of hay to practice your lasso skills.

Dominick Reuter/Insider

Recreational ranching can be an expensive hobby, with the annual cost of horse ownership running at least $6,000 to $8,000 per animal.

Dominick Reuter/Insider

There are also live chicks for sale for poultry enthusiasts. A chicken is decidedly less expensive to own than a cow.

Dominick Reuter/Insider

The center of the sales floor features a rotation of seasonal items and decor like these jumbo decorative roosters...

Dominick Reuter/Insider

... decorative wagon wheels and retro coolers...

Dominick Reuter/Insider

... and more bad-pun yard and garden ornaments.

Dominick Reuter/Insider

There's also a selection of safes and utility boxes to choose from, though it's not clear how you're supposed to get this one out of the store, much less into your house.

Dominick Reuter/Insider

There's also a selection of safes and utility boxes to choose from, though it's not clear how you're supposed to get this one out of the store, much less into your house.

As with any conventional small hardware store there are plenty of nuts and bolts to meet basic needs.

Dominick Reuter/Insider

Plus, welding supplies and stock metal for building your own projects.

Dominick Reuter/Insider

And of course, no self-respecting retailer could call itself Tractor Supply Co. without selling supplies for your tractor.

Dominick Reuter/Insider

If your Deere isn't running, it might be time for a trip to TSC.

Dominick Reuter/Insider

Big or small, Tractor Supply has got you covered.

Dominick Reuter/Insider

The company says its target customer has "above average income and below average cost of living" – and presumably they've got fairly large plots of land, too. Fifty pounds of seed is enough for about a quarter-acre of new grass.

Dominick Reuter/Insider

The company says its target customer has "above average income and below average cost of living" – and presumably they've got fairly large plots of land, too. Fifty pounds of seed is enough for about a quarter-acre of new grass.

To keep all that lawn and garden in good shape, there's a full selection of landscaping tools.

Dominick Reuter/Insider

BB guns can help keep critters off your veggies as they grow, and a full array of canning supplies is on hand to process and store the harvest when the time comes.

Dominick Reuter/Insider

All told, it's exceedingly clear why Tractor Supply is doing well: the company knows who its customers are and what they want, and that is a recipe for success.

Dominick Reuter/Insider

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I went to Tractor Supply and saw why Wall Street loves the rural retailer, but I wasn't convinced of its appeal to millennial and Gen Z shoppers

The first thing that stood out about Tractor Supply was the relatively small size of the store – it feels more like an Ace Hardware than a Lowe's.

In spite of the smaller scale, the store makes highly efficient use of floor space. Neat merchandise displays seem to occupy every square inch that can be safely used.

Shoppers are greeted at the entrance with displays of low-cost impulse buys, like these toy cars...

... novelty hunting knives and tools...

... stuffed animals, and greeting cards with decidedly boomer humor.

Toward the rear of the store, rural lifestyle magazines keep shoppers up to date on their interests, from gardening to guns to fishing.

Shoppers can also wear their hobbies and political views on their sleeve – or on their chest – with a collection of printed T-shirts.

Most of the apparel is more restrained to an All-American aesthetic of muted blues, grays, and earth tones.

If middle America has a uniform, you can get it at Tractor Supply.

Wrangler or Carhartt: Take your pick.

Saddle up with a pair of cowboy boots...

... and grab a snapback mesh baseball cap to complete the look.

A growing chunk of the company's sales comes from online orders, which makes sense, as CEO Hal Lawton was once in charge of Home Depot's online business.

In spite of its name, Tractor Supply Co. in fact gets the largest share of its revenue from livestock and pet supplies and services.

The animal-care segment brings in half of total sales, and is growing.

Throughout the store, the company offers a mix of national brands (like Kong and Chuck It dog toys) and privately owned labels, which represent nearly a third of revenue.

The company also is making a concerted effort to drive more sales toward products it refers to with the acronym "CUE" for consumable, usable, and edible, like pet and livestock food and bedding material.

And most locations feature a pet washing station.

Beyond dogs and cats, owners of horses, cows, and poultry can find what they need to keep their animals well-fed...

... healthy...

... and comfortable.

The company refers to some of its customers as "recreational ranchers"...

... and you can get a plastic bull's head to put on a bale of hay to practice your lasso skills.

Recreational ranching can be an expensive hobby, with the annual cost of horse ownership running at least $6,000 to $8,000 per animal.

There are also live chicks for sale for poultry enthusiasts. A chicken is decidedly less expensive to own than a cow.

The center of the sales floor features a rotation of seasonal items and decor like these jumbo decorative roosters...

... decorative wagon wheels and retro coolers...

... and more bad-pun yard and garden ornaments.

There's also a selection of safes and utility boxes to choose from, though it's not clear how you're supposed to get this one out of the store, much less into your house.

As with any conventional small hardware store there are plenty of nuts and bolts to meet basic needs.

Plus, welding supplies and stock metal for building your own projects.

And of course, no self-respecting retailer could call itself Tractor Supply Co. without selling supplies for your tractor.

If your Deere isn't running, it might be time for a trip to TSC.

Big or small, Tractor Supply has got you covered.

The company says its target customer has "above average income and below average cost of living" – and presumably they've got fairly large plots of land, too. Fifty pounds of seed is enough for about a quarter-acre of new grass.

To keep all that lawn and garden in good shape, there's a full selection of landscaping tools.

BB guns can help keep critters off your veggies as they grow, and a full array of canning supplies is on hand to process and store the harvest when the time comes.

All told, it's exceedingly clear why Tractor Supply is doing well: the company knows who its customers are and what they want, and that is a recipe for success.