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. Â
💵💰 Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💵💰
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.
Related: It’s your last chance to shop at this bankrupt retail chain
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.
Eric Glenn / Shutterstock
Tractor Supply becomes a pet pharmacy businessÂ
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.Â
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.
Related: Amazon Haul makes moves to avoid tariffs, fight Temu, Shein
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. Â
However, only a few days later, Tractor Supply’s shares fell drastically, overshadowing this huge announcement.Â
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.
As reported in its latest earnings, Tractor Supply’s comparable sales declined nearly 1% compared to the year prior. Although its transaction volume increased by over 2% during the quarter, its average ticket size fell by almost 3%.Â
The company’s earnings per share and full-year revenue also failed to meet analysts’ expectations.
More Retail News:
- Popular retail chain to close stores and cut hundreds of jobs
- Uber faces lawsuit over pricing, subscription service
- Walmart makes major store changes to answer Target
Due to the weaker-than-expected results, Tractor Supply lowered its full-year 2025 guidance. It now predicts sales to grow 4% to 8% compared to its previous 5% to 7%, and comparable sales to grow 0% to 4% compared to its last reported 1% to 3%.
Tractor Supply attributed these declines to the softening in consumer spending and increased costs. It also stated that the tariffs were causing increased uncertainty in the future of its business, which is why it decided to update its guidance.Â
Although these results might have been a bump in the road for the company, its new venture has yet to show its full potential, and could be the push it needs to get its business back on track.Â
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
