Article Summary
Tractor Supply is closing 75 of its 209 Petsense pet stores, eliminating more than a third of the chain to redirect capital toward higher-return businesses, including its newly acquired veterinary services division.
- Tractor Supply will close 75 of 209 Petsense stores, leaving approximately 125 locations operating across 23 states
- The closed stores were operating at negative cash flow, prompting the decision to eliminate losses and reinvest in core business
- The closures will result in $71.7 million in impairment charges, including a $5.9 million inventory write-down
- Tractor Supply recently completed its acquisition of VIP Petcare, a veterinary services business operating clinics in 2,700 retail locations
- The company reduced its 2026 new-store target for Tractor Supply locations from 100 to 85-90 openings
According to reports, Tractor Supply Co. will close 75 of its 209 Petsense stores in the coming months, cutting more than a third of the pet specialty chain as the retailer shifts spending toward higher-return parts of its business.
The Brentwood, Tennessee-based company announced the closures July 23 during its second-quarter earnings call. It has not disclosed which locations will close. Roughly 125 Petsense stores will remain across the chain's 23-state footprint.
Tractor Supply said it will incur $71.7 million in impairment and other charges tied to the closures, including a $5.9 million inventory write-down. Gordon Brothers, based in Boston, will handle disposition of the leases.
According to reports, CEO Hal Lawton said performance varies widely across the Petsense fleet and that the 75 stores slated to close are operating at negative four-wall cash flow. Eliminating those losses will free up capital to reinvest in the core business, he said, and the remaining Petsense stores will fit into the broader pet ecosystem the company is building.
Petsense opened in 2005 and was acquired by Tractor Supply in September 2016 for $145 million. The chain serves small and mid-size communities, selling pet food and supplies and offering services such as grooming and training at some locations.
Tractor Supply has continued to build out pet food and supply assortments in its namesake stores alongside livestock feed. The company also cut its 2026 new-store target for those locations to 85 to 90 openings, down from an original goal of 100. The company opened 28 new Tractor Supply stores and three new Petsense by Tractor Supply stores in the second quarter of 2026.
In the second quarter, Tractor Supply completed its acquisition of VIP Petcare, a veterinary services business based in Eagle, Idaho, that operates clinics in about 2,700 retail locations, including 1,700 Tractor Supply stores. Acquisition-related costs totaled $9.5 million.
