Rural lifestyle retailer Tractor Supply Company on Thursday (Jan. 27) vowed to improve customers’ in-store experience through service enhancements and a transformed staffing model, create personalized mobile offerings and make improvements to its supply chain capabilities.
The moves are part of TSC’s Life Out Here Strategy, which includes store productivity growth through Project Fusion and its Side Lot transformation program. The company says it will deliver on the increased demand for consumable, usable and edible merchandise with its supply chain enhancements.
TSC’s fourth-quarter net sales for the fiscal year ending Dec. 25 were $3.32 billion, up 15.3% from the same time in 2020, while fiscal year net sales jumped 19.9%. Comparable store sales also both showed impressive gains, up 12.7% for Q4 and 16.9% for fiscal 2021.
“Tractor Supply had an outstanding fourth quarter, capping off a record year of sales and earnings in 2021,” Tractor Supply President and CEO Hal Lawton said in the company announcement of its latest earnings.
“Today, our business is substantially stronger than before the pandemic,” he said. “Our resilient and differentiated business model has allowed us to capitalize on the structural consumer trends benefiting our business, and we believe we have a long growth runway ahead of us. We have strong momentum in our business, and our results demonstrate that our multiyear Life Out Here strategy is working.”
TSC is in the midst of its largest dividend increase and an expanded share repurchase authorization, said Lawton.
“We believe we are well positioned to continue to drive profitable growth and enhance value for our shareholders,” he said.
The average ticket grew more than 10% from Q4 in 2020 to fiscal 2021’s final three months, while the average transaction count grew 2.4 percent year over year, driven by increase demand for everyday merchandise, including consumable, usable and edible (“C.U.E.”) products.
Related: Tractor Supply, Citi Extend Longtime Credit Card Deal
In May, TSC extended its decades-old credit card collaboration with Citi Retail Services as part of “a continued commitment” to expanding the TSC’s personal credit card portfolio.
Citi issues the TSC Personal Credit Card, which offers special status in the store’s Neighbor’s Club and 5 percent back on some purchases, and the Tractor Supply Business Card for business customers.