Tractor Supply to Close 75 Petsense Stores

Tractor Supply Company announced plans to close approximately 75 underperforming Petsense by Tractor Supply stores, according to a July 23 earnings call. The move is part of a strategic repositioning aimed at improving profitability and focusing resources on more promising ventures.

CEO Hal Lawton stated that the targeted Petsense locations were not generating enough revenue to cover local operating costs such as rent, labor, and inventory. He indicated that closing these stores will allow the company to reinvest capital into areas with higher growth potential and better returns.

Tractor Supply's Chief Financial Officer Kurt Barton described the closures as a "strategic repositioning" to cultivate a "healthier, more profitable business" that aligns more closely with the company's primary Tractor Supply brand. While Petsense operates as a distinct pet specialty retailer, Tractor Supply also sells pet-related items in its own stores.

Despite the closures, Tractor Supply plans to expand its core business. The company now expects to open between 85 and 90 new Tractor Supply stores in 2027, a slight revision from its earlier projection of 100 new locations. The capital saved from the Petsense closures will be redirected towards initiatives like Project Fusion remodels, new store development, and enhancing final-mile delivery services.

Petsense, which had 209 locations across 23 states as of late June, has faced criticism from some loyal customers on social media regarding the planned shutdowns. Many expressed disappointment, particularly concerning the loss of grooming services, with some noting the difficulty of finding alternative groomers who are accepting new clients. Other customers cited concerns about Petsense's pricing, suggesting that products were overpriced compared to competitors and that employees also shopped elsewhere due to limited savings.

Tractor Supply has not yet released a list of the specific Petsense locations slated for closure.