Retailers to Watch in 2023: Tractor Supply Co.
Each year brings with it a new set of challenges to the nation’s retailers, and 2022 was no exception. Consumers evolving their shopping habits while also facing inflation rates not seen in a generation required retailers to be nimble to meet the needs of their customers.
As 2022 comes to a close, Store Brands has put together a list of 10 retailers we think are worth watching closely in the New Year. From leading grocery chains to growing e-commerce players, the coming 12 months will see retailers face new challenges, revamp product assortments and provide consumers with new options to meet their ever changing demands.
The profiles of the 10 retailers Store Brands has selected will provide you an overview along with our thoughts on why each is worth watching in 2023.
Overview
In January, Tractor Supply hit a significant milestone as the retailer opened its 2,000th location. And since that major announcement to start the year, the news has kept coming. Hitting and eventually surpassing this impressive store count is noteworthy for a retailer that was founded in 1938 as a mail-order business focused on providing tractor parts to farmers at fair prices.
Today, the retailer provides a broad array of products to communities across the country.
What to Watch
Private label products are no stranger to Tractor Supply, and the retailer this year continued to expand that assortment with the launch of an exclusive apparel collection from Carhartt. A portion of the proceeds from every item purchased will be donated to SkillsUSA, a non- profit that serves students from middle school through college/postsecondary institutions to prepare for careers in the trade.
Given the strong demand for store-branded products from consumers, the opportunity for Tractor Supply to take advantage of this is there. In addition, the retailer has also enjoyed substantial growth in the pet category, and private label products are playing a significant role in the expansion. Among the steps it has taken includes the rebranding of Petsense to Petsense by Tractor Supply. Company officials said this move was done to deepen relationships with existing customers and also attract new customers seeking pet products.
During its third quarter investor conference call, officials with the retailer reported making substantial gains in the pet category despite some saying sales in the segment are moderating. Key to Tractor Supply’s growth and success in the category has been a combination of customer service, being in-stock, pricing and a strong private label selection.
Going forward, officials with the retailer expect the category to continue growing. How Tractor Supply further augments its pet product assortment and if it attracts new customers will be worth watching in the coming year.