Tractor Supply Company is a retail agricultural supply company based in Brentwood, Tennessee. It operates more than 1,500 stores in 49 states of the United States under the Tractor Supply Company and Del’s Feed & Farm Supply trade names. In 2015 it had sales of $7.3 billion.
The company takes its name from the Dervaes family’s purported use of a tractor to plow their urban Los Angeles backyard garden in 1938, when tractors were commonly used for small jobs in outlying areas. Wayne and Judy Dervaes began selling supplies at their store, J&B Implements in Rosemead, California in 1939; they opened their second location in Gardena, California two years later.[1] After World War II, the Dervaes family moved to Compton, California and opened a full-line implement dealership.
In 1962, Wayne Dervaes sold his share of J&B Implements to two brothers who had previously managed it for him. He used the funds from that sale to open Tractor Supply Company in Brentwood, Tennessee. The company opened its first distribution center in Columbia, Tennessee in 1973. As of 2013 it operates distribution centers in Texas, North Carolina, Nevada, Oklahoma, Idaho, Oregon, Mississippi, Alabama, South Carolina, Arkansas, Georgia, Utah, New Jersey and is adding a new distribution center in Kansas.
In 2013, Tractor Supply Company acquired Family Farm and Ranch Supply, its largest competitor. In 2014 it sold two of the stores to Young’s Equipment in North Carolina but continued to operate nine other Young’s locations in South Carolina and West Virginia. The purchase included approximately $520 million worth of inventory including parts, tools and supplies; equipment; and real estate leases. That same year the company also acquired Roadrunner Distributors, Inc., a manufacturer’s representative for agricultural chemical products in five states: Kentucky, Tennessee , North Carolina, South Carolina and Louisiana. It also acquired Merchants Distributors, Inc. and Butler Supply Company, both manufacturers’ representatives in the southern U.S., expanding its agricultural chemical specialty business to 11 states
Tractor Supply Company uses a strategy of “every day low prices” that it says allows it to avoid “high-pressure sales tactics”. Employees who sell products at Tractor Supply Company stores are called “product specialists,” and they receive commissions for selling hardware and other merchandise in addition to their base pay. The company has been characterized as “a rural-oriented general retailer” by several commentators because about 75% percent of its locations are in nonurban areas with populations under 25,000. At the end of 2014, the company operated 1,542 retail locations in 49 states.
In 2015, Tractor Supply Company was third on the list of largest U.S. companies by revenue (after Wal-Mart and The Kroger Co.) with $7.24 billion in total sales for the year.[2] That same year, it ranked first among retail chains for diversity among its employees; four out of five members of its leadership team were women or minorities.[3] Its stock price fell from a high of about $80 per share in 2011 to less than $30 at the beginning of 2016 as profits declined due to lower commodity prices and increased competition from discount stores such as Big Lots. At one point in early 2016, analysts speculated that the company might be forced to file for bankruptcy reorganization.
Tractor Supply Company operates stores in 49 states, largely in rural areas. As of 2015 it had about 1,600 retail locations under the Tractor Supply Company and Del’s Feed & Farm Supply trade names. It also sells products online at TractorSupply.com. In 2011 it began selling its merchandise through e-commerce sites such as Amazon.com.
The company’s stock is traded on the New York Stock Exchange under the symbol “TSCO.” 2016 revenue totaled $7.24 billion with a 3% increase from 2014; net income declined by 49% between those years because of reduced earnings per share related to reduced prices for corn, milk, and other commodities.
Tractor Supply Company products include products related to farming such as tractor accessories (including tires), animal health and nutrition, fencing supplies, turf products and fertilizers; to construction such as chainsaws, generators and power washers; to automotive such as batteries and outdoor tools; and to gardening.[6] Some locations also sell pet food and supplies, home goods such as furniture and appliances, hardware such as tools and small motors, clothing for work or recreation including boots, overalls and hats for men, jeans for women, and hunting gear.
As of 2015 the company had 1,600 retail locations under two trade names: Tractor Supply Company is an agricultural supply store while Del’s Feed & Farm Supply sells similar products but is a supplier of products made for horses and livestock.[7] Tractor Supply Company stores are about 16,000 to 25,000 square feet (1,500 to 1,700 m2), while Del’s Feed & Farm Supply stores are between 20,000 and 50,000 sq. ft. (1,900 and 4,600 m2).
