At Tractor Supply, change is slow and rapid

Tractor Supply Company was extremely busy in its third fiscal quarter.

Let's list some of the changes: The flight of Flocktoberfest for backyard birding enthusiasts, the test (at 140 stores) of the new Neighbors Club customer loyalty program; the relaunch of a multi-device-friendly web site.

And here's something you don't read about too often: the construction of a new distribution center in Casa Grande, Arizona, completed on time and under budget.

Along with these clear-cut initiatives, the company is undergoing what it might call a slow evolution and a slow but steady increase in its geographic proximity to big boxes.

CEO Greg Sandfort was asked about the changes during the company's Q3 conference call with investors. Tractor Supply is finding real estate opportunities closer to larger markets. A change of pace, Sandfort said, from a decade ago when the stores sat about 15-20 miles outside of most city limits. About two-thirds of Tractor Supply stores are "in proximity" with Home Depot and Lowe's, Sandfort said.

There's no change in real estate strategy, he explained, just urban crawl combined with slow evolution. Referring to the big boxes, he added: "We both have hardware, but it's very different assortments." While a Depot's focus would be electric, Tractor supply customers lean toward compressed air, for instance.

"We're learning from our real estate portfolio," he said. "And what we have seen that it continues to work for us."