Tractor Supply Closes 75 Petsense Stores, Slows Expansion

Tractor Supply Co. announced plans to close about 75 of its underperforming Petsense specialty stores, representing nearly a third of the chain's 209 locations across 23 states. The move comes as the rural lifestyle retailer navigates a period of softer discretionary spending.

The company expects these closures to result in approximately $71.7 million in impairment and other charges. "We believe these actions will improve returns, simplify the business, and allow us to direct resources toward higher-growth, higher-return opportunities," said Tractor Supply CEO Hal Lawton during the company's second-quarter earnings call.

Comparable sales for the quarter dipped 1.5 percent, accompanying a slight decline in adjusted net income. In addition to the store closures, Tractor Supply is adjusting its expansion plans. The retailer now anticipates opening 85 to 90 new Tractor Supply stores in 2027, down from a previous target of 100.

Founded in 1938, Tractor Supply operates nearly 2,500 stores nationwide. While scaling back the Petsense brand, the company stated that pet supplies still represent a significant portion of its addressable market.