Country charm

It also remains much more expansionist From a modest start as a mail-order seller of tractor parts in 1938 and then a single store in Minot, North Dakota, one year later, Tractor Supply Co. has grown over the years into a $ 4.66 bn retailer with a targeted marketing approach. During the last decade it has grown from just under $ 1 bn in sales to $ 4.66 bn; from 420 stores to 1 176, and from operating in 30 states to doing business in 45. In many locations it is a tough competitor for hardware stores as well as home centres, even though its merchandise assortment is nowhere near as broad as that found in the other two kinds of retailers. While hardware stores and home centres will stock 20 000 to 40 000 SKUs (sometimes even more), Tractor Supply concentrates on 12 000 to 14 000. Its customer base consists of small farmers, hobby farmers, active DIYers, rural folk and suburbanites with larger-than-normal plots, and those seeking a country lifestyle. Because of its extensive stock of basic hardware, chain, fasteners, etc, it also serves many contractors. Stores are located in smaller cities or in suburbs of some larger cities. The company’s stores average just 1 500 m², so they are not in the class of a big-box home centre like Home Depot or Lowe’s. The inventory listing on Tractor Supply’s web site is broken down into 16 categories, but most lack the depth of inventory in basic categories of even a small hardware store. However, it is a dominant merchant in certain categories, such as power equipment, pet supplies and chain, etc. In paint, for example, management has slimmed the assortment drastically, recognizing that it cannot compete, colour-wise, with the typical hardware store, paint store or big-box retailer offering hundreds or thousands of shades. There is no colour-matching service and the concentration is on a narrow range of finishes in 5-gallon pails – while customers can have any colour they want as long as it’s white, aluminum, barn red or black. Because of its targeted customer base, the pet supplies department is one of the strongest. It features feeds and medicines for all kinds of animals, as well as accessories and supplies for everything from horses to cats and dogs. There are plenty of dog houses and similar bulky items. Stores exist in 45 of America’s 50 states, and are located in smaller cities or suburban locations of metro areas. Locations are good but not what one would call prime, which enables the stores to have ample space on…