Are Investors About to Win Big With Tractor Supply's New Growth Plan?
Tractor Supply (NASDAQ: TSCO) is an interesting retailer. While it is geared toward farming, even selling baby chickens, it isn't exactly focused on full-time farmers. That's partly why it has been able to keep expanding its store base for many years, drawing in both hobby farmers and general consumers.
Higher interest rates are changing the equation for this retailer's growth and making expansion more expensive, but Tractor Supply thinks sale/leasebacks will save the day.
In 2022, Tractor Supply added 63 new stores under its main nameplate. It added a net of eight new stores under the Petsense by Tractor Supply name. The retailer also bought 81 locations from Orscheln Farm and Home and it expects to rebrand those locations to Tractor Supply by the end of 2023. That's a lot of growth for one year. In 2023, the company plans to expand by around 70 stores or so. Looking out to the future, management hopes to increase that annual new store pace to 90 a year by 2025.
Source Fool.com
