Tractor Supply Unveils Life Out Here 2030 Strategy at 2024 Investment Community Day

Tractor Supply Company, which also owns and operates Petsense by Tractor Supply, last week presented its Life Out Here 2030 strategy at its Investment Community Day. This strategy marks the next phase of its growth plans.

“Tractor Supply has a rich history and track record of success. Over the last five years, we have delivered strong financial performance and enhanced our competitive advantages through the execution of our Life Out Here strategy. With an expanded total addressable market of $225 billion, we have significant runway for growth. Our Life Out Here 2030 strategy continues the momentum of our existing initiatives as well as launches new initiatives such as Pet Rx and Direct Sales. We remain steadfast in our commitment to drive sustainable growth and long-term value for our shareholders. Tractor Supply has never been stronger and the next five years are going to be very exciting,” said Hal Lawton, president and chief executive officer of Tractor Supply.

During the Investment Community Day, Tractor Supply’s executive leadership team shared the significant progress the company has made in the last five years to transform its business and outline the next phase of its strategic plan, Life Out Here 2030. Since first introducing its Life Out Here strategy in October 2020, the company has scaled its Project Fusion store layout and remodel program to about 50 percent of its stores, completed more than 550 garden centers, added 22 million members to its Neighbor’s Club loyalty program, grown its digital sales by more than 340 percent and opened 13 distribution facilities. The company’s Life Out Here 2030 strategy complements this progress with the addition of the following strategic initiatives:

• Localization – Tailor product selection to meet specific demographic and regional needs to maximize relevance while remodeling store layout and adding updated features
• Direct Sales Opportunity – Extend its legendary customer service to address the “Out Here” business-to-business market including larger farms, small to medium businesses and event spaces
• Pet and Animal Rx – Expand capabilities to grow share of wallet with pet and animal customers while driving increased loyalty through its more than 37 million Neighbor’s Club members
• Final Mile Delivery – Create a comprehensive and scalable final mile delivery solution to provide greater order visibility and delivery reliability to its customers and unlock the potential of its direct sales opportunity
• Tractor Supply Retail Media Network – Scale comprehensive media platform to support its brand partners and activate a new profit stream
• Private / Exclusive Brands – Increase penetration of private label and exclusive licensed brands to enhance differentiation and improve gross margins

As part of its Life Out Here 2030 strategy, Tractor Supply is updating its long-term financial algorithm. Kurt Barton, executive vice president and chief financial officer of Tractor Supply, said, “Tractor Supply is committed to building on our longstanding track record of creating shareholder value. Capitalizing on our key competitive advantages and the ongoing strength of our current initiatives, along with investments in new growth opportunities, positions us well to continue gaining market share.”

In 2025, the company anticipates opening 90 new Tractor Supply stores and approximately 10 new Petsense by Tractor Supply stores. The company updated its total addressable market to approximately $225 billion from $180 billion and its long-term store count to 3,200, an increase of 200 locations.

These estimated growth rate targets do not constitute guidance for any currently identifiable period and represent long-term annual targets over time. Performance in any individual year may be lower or higher than these targets.

5-for-1 Stock Split

The Board of Directors of Tractor Supply approved a 5-for-1 stock split of the company’s issued common stock to make its stock more accessible to team members and investors. Shareholders of record as of Dec. 16, 2024, will receive four additional shares for each share held, which will be distributed after market close on Dec. 19, 2024. Tractor Supply’s shares are expected to begin trading on a stock-split adjusted basis at the market open on Dec. 20, 2024. This represents the fifth stock split for Tractor Supply since it went public more than 30 years ago in 1994.

Tractor Supply team members may purchase shares of the company’s stock at a 15 percent discount through the convenience of bi-weekly payroll deductions. The employee stock purchase plan is a long-term investment option that allows team members to share in Tractor Supply’s growth.

Barton said, “Tractor Supply has a history of stock splits to help our team members take advantage of our employee stock purchase benefits, as well as appeal to a broader range of retail investors. We believe that the stock split will make our common stock more affordable and attractive to potential investors, including our team members and increase the liquidity of the trading of the shares of our common stock.”