Tractor Supply Company’s digital business keeps growing, sales were up, and the company has put forth an ambitious three-year water conservation goal.
The rural lifestyle retailer’s e-commerce sales experienced double-digit percentage growth for the 39th consecutive quarter. In addition, net sales for Q1 2022 increased 8.3% to $3.02 billion from $2.79 billion in Q1 of 2021, while comp store sales increased 5.2%, up 43.8% on a two-year stack.
“We are making great strides in expanding our digital presence,” Hal Lawton, Tractor Supply’s president and CEO said on the company’s earnings call. “Of note, our mobile app now represents more than 15% of our digital sales. This quarter, we crossed 3 million downloads of the Tractor Supply app. And this is a major milestone in our ONETractor strategy and our ability to offer our customers a more seamless shopping experience.”
The retailer just celebrated the one-year anniversary of the relaunch of its Neighbor’s Club to a points-based loyalty program. The new loyalty offering reached a record 24.8 million members in the quarter, an increase of 24% from last year’s first quarter. Transactions, total sales, and spend per active Neighbor’s Club member, all grew significantly in the quarter.
“The relaunch has been an overwhelming success as it has measurably encouraged customers to migrate their spending upwards,” Lawton said. “Our Neighbor’s Club members are comping at a faster overall rate than our overall company performance, and we’re seeing strong growth and retention in our high-value customers.”
Looking ahead, the company has 175 garden centers customer-ready for spring and continues to forecast having garden center transformations of store side lots in over 15% of stores by the end of the year. The retailer also continues to target opening approximately 75 to 80 new Tractor Supply stores in fiscal 2022.
“While we anticipate that we will continue to operate in a highly inflationary and volatile environment, we believe Tractor Supply is uniquely positioned for growth with a resilient, domestic business model that has stood the test of time,” Lawton said in a press release. “The strength of our business and the needs-based, demand-driven nature of our product categories complemented by our Life Out Here strategy give us confidence in our outlook and in our ability to successfully navigate the continuing challenges of the dynamic environment.”