“Stores with our garden centers are attracting new customers at a faster pace than the rest of the chain,” said Lawton. “Additionally, our garden center stores are providing a multiyear comp benefit.”
Barton expects capital expenditures, including toward new store costs, to reach between $850 million to $925 million. The efforts will have significant support from the company’s ongoing investments in its supply chain and distribution centers, with Tractor Supply opening its tenth distribution center in Q2 of 2024.
“Our distribution centers achieved a record year of productivity.The opening of our Novar [ph], Ohio DC in January 2023 allowed us to unlock savings across our network with the largest rebalancing of our stores ever. These investments were to enable the higher volumes of our existing stores, the continued build-out of our new stores as well as the acquisition of Orscheln.” — Hal Lawton, CEO, Tractor Supply
Online isn’t taking a back seat, however, as Lawton said the company is currently getting more visitors online than in-store. “We will leverage AI technologies to improve search, redesign our checkout, introduce a new refreshed homepage focusing on personalization that leverages our robust Neighbor's Club data.”
Walmart Ramps Up Store Strategy
John Furner, president and CEO of Walmart U.S, recently shared details about the company’s continued store expansion and remodel strategy. Over the next five years, the company plans to build or convert more than 150 stores while also remodeling existing stores, and much like Tractor Supply, the efforts are supported by a strengthened supply chain system.
“I’m proud to announce our support for even more jobs by expanding and modernizing the facilities most core to our business: our stores,” said Furner. “These efforts represent millions of dollars in capital investment of labor, supplies, and tax revenue, which benefit their respective communities. And they’ll help us reach and serve even more customers.”