Four for the farm

Tractor Supply executives are known for looking a little farther down the row than most companies. “We believe our business can be more accurately assessed by focusing on the halves, not the quarters,” said CEO Greg Sandfort during a recent presentation.



The thing about Tractor Supply — the HBSDealer Retailer of the Year in 2007 — is its methodical approach to growth and improvement. Retailers don’t cross $6 billion in sales by accident. The company expects 120 new stores in 2016, and comps in the 3% to 5% range.



It has mapped out four growth initiatives to make growth happen.



1) Test and learn: New products are the starting point. The company says it continues to instill in its merchants an “environment of risk-taking.” On top of that is a test-and-learn approach to business improvement. For instance, the Neighbor’s Club customer loyalty program was launched in 140 stores in October. The fourth quarter was the first full three months with the program in place.



2.) C.U.E. it up: The company also hopes to drive repeat traffic and initiatives in consumable, usable and edible items — or C.U.E. How? Sharp pricing and high in-stock levels.



3.) Win in the aisles: Tractor Supply’s initiative to “drive aisle merchandise” involves center-court events, endcaps and special buy showcases. In the case of the latter, Chick Days at Tractor Supply are an annual tradition for seasoned or novice backyard bird keepers. In stores, customers find Rhode Island Reds, Ameraucana, Buff Orpington, Bantams, Cornish Rocks, Khaki Campbell ducklings and more. Even more breeds are available through special order. Plus, this year, Chick Days offered 30% more items, from coops to equipment.



4) Go local: Tractor Supply says it thinks of its 1,500 stores as 1,500 unique markets, and the more it can match its market with relevant local brands and regional assortments, the better the potential for growth.