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Convenience is everything nowadays, and with retail giants like Walmart and Target turning their businesses into one-stop shops, it's becoming harder to outdo the competition.
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This popular retail chain is the largest rural lifestyle retailer nationwide. For nearly 87 years, it has been the trusted store for farmers, ranchers, and homeowners for all their landscaping and gardening needs.
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To level up to its fellow retailers and not fall behind, this company has entered a new business, opening the doors to become the next go-to store for all consumers. However, a sudden turn of events has just taken away its shine.
Tractor Supply becomes a pet pharmacy business
Tractor Supply (TSCO) unveiled its latest venture this week, Tractor Supply Rx, an affordable pet and animal pharmacy where customers can conveniently purchase lawn and gardening equipment and any medication their pets and animals may need in just one place.
With this new service, customers can enroll in automatic delivery through the Autoship program, access expert advice on the Tractor Supply Rx website, and earn points and rewards on purchases by signing up for the Neighbor’s Club loyalty program.
"With three out of four of our 38 million Neighbor’s Club members owning a pet or animal, we have continually sought ways to provide an easy, one-stop shopping destination for all of their needs," said Tractor Supply Chief Technology, Digital and Corporate Strategy Officer Rob Mills in a press release. "We are now able to provide our pet customers with seamless, trusted access to the best value in medications and the expert guidance needed to help their pets and animals thrive," he added.
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Although it might seem like an unexpected addition to its business, this expansion had been in the works since last year, when Tractor Supply acquired the online pet pharmacy Allivet after being a longtime partner, expanding its addressable market by $15 billion.
Entering this new market allows the retailer to expand its portfolio, make shopping more efficient for consumers, and reach a broader audience to increase sales and boost growth.
However, only a few days later, Tractor Supply's shares fell drastically, overshadowing this huge announcement.
Tractor Supply's shares nosedive after reporting weak earnings
After reporting its first-quarter earnings for fiscal 2025 on April 24, the results were weak, causing Tractor Supply's shares to fall nearly 6% that morning. Shares have stabilized since then, closing on April 25 up 0.92% at $49.92, but have declined by over 6% year to date.