Hal Lawton Announces Tractor Supply Will Close 75 Petsense Stores and Slow Expansion Plans
Tractor Supply Company CEO Hal Lawton announced that the retailer will close approximately 75 underperforming Petsense stores to improve returns and simplify the business. This move follows a second quarter where net income fell 16.1% to $360.7 million, largely due to unusually adverse conditions in May. Hal Lawton cited high fuel prices and persistent drought in the Southeast as primary factors that pressured customer discretionary spending and reduced demand for outdoor-related purchases. To optimize capital, the company is also scaling back its expansion, now projecting 85 to 90 new stores for 2027 instead of the previous 100. The redirected capital will be used for store remodels, technology updates, and expanding Final Mile delivery options. While net sales rose 2.3% to $4.54 billion, comparable store sales declined 1.5%. The administration of the company's strategy now focuses on reinforcing its value position and improving productivity to ensure long-term shareholder value.