Tractor Supply Co. has seen an increase in its petfood sales as non-traditional customers come in looking for a deal in the current economy.
According to the company, its second quarter same-store sales surged by 6.1% due to core consumable categories, which include animal and pet-related products. In addition, the livestock and pet product segment is outperforming all other product categories and in 2009 represented 39% of sales, up from 33% in 2007. "In good times or bad times, it's convenient to go in and get a large bag of feed," said Morgan Keenan Analyst John Lawrence.
As more and more households add pets, Tractor Supply has adjusted accordingly. "We've continued to grow our offerings as pets went from outside the home to inside, and the pet population has grown," said Tractor Supply Vice President Ken Wilmes. The company has even launched its own brand of dry dog food called 4health, with plans to expand the line to include wet dog food and cat food.
While cat trends continue, the pandemic has added to overall slow-growth treatment of the cat food market.
Premiumization and humanization, as well as automation, fueled continued operation growth in spite of the COVID-19 pandemic.