Tractor Supply Posts 39th Quarter of Double-Digit Digital Sales Growth
Tractor Supply Company’s digital business keeps growing, sales were up, and the company has put forth an ambitious three-year water conservation goal.
The rural lifestyle retailer’s e-commerce sales experienced double-digit percentage growth for the 39th consecutive quarter. In addition, net sales for Q1 2022 increased 8.3% to $3.02 billion from $2.79 billion in Q1 of 2021, while comp store sales increased 5.2%, up 43.8% on a two-year stack.
“We are making great strides in expanding our digital presence,” Hal Lawton, Tractor Supply’s president and CEO said on the company’s earnings call. “Of note, our mobile app now represents more than 15% of our digital sales. This quarter, we crossed 3 million downloads of the Tractor Supply app. And this is a major milestone in our ONETractor strategy and our ability to offer our customers a more seamless shopping experience.”
The retailer just celebrated the one-year anniversary of the relaunch of its Neighbor’s Club to a points-based loyalty program. The new loyalty offering reached a record 24.8 million members in the quarter, an increase of 24% from last year’s first quarter. Transactions, total sales, and spend per active Neighbor’s Club member, all grew significantly in the quarter.
“The relaunch has been an overwhelming success as it has measurably encouraged customers to migrate their spending upwards,” Lawton said. “Our Neighbor’s Club members are comping at a faster overall rate than our overall company performance, and we’re seeing strong growth and retention in our high-value customers.”
Looking ahead, the company has 175 garden centers customer-ready for spring and continues to forecast having garden center transformations of store side lots in over 15% of stores by the end of the year. The retailer also continues to target opening approximately 75 to 80 new Tractor Supply stores in fiscal 2022.
“While we anticipate that we will continue to operate in a highly inflationary and volatile environment, we believe Tractor Supply is uniquely positioned for growth with a resilient, domestic business model that has stood the test of time,” Lawton said in a press release. “The strength of our business and the needs-based, demand-driven nature of our product categories complemented by our Life Out Here strategy give us confidence in our outlook and in our ability to successfully navigate the continuing challenges of the dynamic environment.”
New Water Conservation Goal
Tractor Supply Co also announced significant milestones and commitments in its Environmental, Social and Governance (ESG) efforts in commemoration of Earth Week and has established a new water goal to reduce its company-wide absolute water footprint by 25 million gallons by 2025.
The company plans to achieve this goal by investing in various operational interventions, offering products focused on water savings and developing strategic conservation partnerships established through the Tractor Supply Foundation. This new goal is the next chapter of the retailer’s journey in its Stewardship Program, which was established as a reflection of its core Mission and Values and commitment to doing the right thing for its customers and the communities in which it serves.
Highlights of Tractor Supply’s 2021 “Stewards of Life Out Here” Sustainability Report:
- Reduced its scope 1 and scope 2 GHG emissions intensity per million dollars of revenue and per square foot by 18.8% and 6.2%, respectively,
- Reported scope 3 GHG emissions for the second consecutive year,
- Avoided landfill contributions with ongoing recycling efforts:
- 392,000 batteries
- 99,900 gallons of used oil
- 32,610 tons of cardboard
- 4.3 million wood pallets
- The Company donated more than $14 million to community organizations through direct giving, sponsorships, fundraisers and more, including over $570,000 donated to DE&I causes and over $1.9 million in products, including pet foods and supplies, were donated to various organizations.
To read Tractor Supply’s 2021 Sustainability Report, please visit IR.TractorSupply.com/ESG.