Life 'Not So Far Out' Here: Why Tractor Supply's New Store Growth May Be In The Suburbs
Whether or not Tractor Supply has saturated the core rural markets that built its business, the rural lifestyle retailer may find its best future growth and real estate opportunities in the suburbs
At its Investor Day last December, Tractor Supply TSCO 0.00%↑ unveiled its “Life Out Here 2030 Strategy.”
The real estate part of the plan projects that the rural lifestyle retailer will open ~500 new stores over the next 5 years to reach 3,000 in total by the end of the decade.
Since unveiling its initial Life Out Here strategy in 2020, Tractor Supply has opened ~500 new stores and remodeled ~1,000 sites to its Fusion prototype.
But while Tractor Supply shared plans to add new sites, it did not highlight where these new stores would be located or the type of real estate it would pursue.
Even though its repurpose of “2nd generation” real estate vacated by other retailers and opening of new stores in the suburbs offer hints of what may be to come.
Tractor Supply’s current store prototype is a 15,000 - 20,000 square foot, freestanding building with an expansive outdoor selling area.
It has primarily located stores in rural communities and in “exurban” towns that surround major metropolitan markets.
But Tractor Supply’s real estate profile is more diverse than its store prototype and stated geographic focus:
~40% of Tractor Supply’s ~2,300 stores are in shopping centers rather than new construction, freestanding sites
A large number of its 500 new store additions over the past 5 years are in 2nd generation space formerly occupied by other retailers
Many of its new stores are in densely populated, suburban areas near to major cities
Perhaps Tractor Supply’s most important real estate pursuit in recent years has been its opportunistic adaptive reuse of buildings vacated by bankrupt retailers.
For instance, dozens of its new store openings in the Upper Midwest over the past 5 years were backfills of former Shopko buildings that were vacated after the rural department store chain filed for bankruptcy and liquidated in 2019.
Over 100 Tractor Supply stores are located in parts of former Kmart buildings including many in suburban areas.
Tractor Supply has also backfilled real estate from other bankrupt retailers with a suburban real estate focus such as Toys R Us and Babies R Us.
Additionally, Tractor Supply has strategically backfilled suburban stores vacated by ancillary competitors—like pet supplies retailers.
Including this former Petsmart in Rochester Hills, Michigan, an affluent and densely populated suburb of Detroit.
In fact many local members of the Rochester Hills, MI community were surprised that Tractor Supply elected to open a store in their city.
But it turns out there were plenty of loyal Tractor Supply customers in the local area that had been driving long distances to its stores in outlying areas.
The Rochester Hills, MI store also features merchandise and services that cater to an affluent suburban demographic.
Like a large Carhartt “store-in-store” with ample product displays for the heavy duty—yet increasingly trendy—workwear maker.
As well as an expansive pet food section that focuses on dogs and cats rather than equines and bovines.
This suburban merchandising strategy is an output of Tractor Supply’s Project Fusion initiative that allocates selling space in a localized manner.
In other words, more space in rural markets for animal feed, livestock supplies and tools for farm and ranch maintenance.
While stores in exurban and suburban areas emphasize apparel, seasonal decorations, pet food and services like washing, grooming and even veterinary care.
Growth in the suburbs may be key for Tractor Supply to achieve other aspects of its Life Out Here 2030 plan.
Like adding 20 MM new Neighbor’s Club rewards members and building pet prescriptions into a $1 BB business.
Another benefit of Tractor Supply’s suburban pivot?
Real estate availability.
Just look at some of the ~90 new store openings that Tractor Supply is planning in 2025.
In May 2025 Tractor Supply acquired 18 leases of bankrupt discount retailer Big Lots to repurpose as new stores.
These include sites in not-so-rural areas like Albuquerque, NM and Wilmington, NC.
In addition to the Big Lots sites, Tractor Supply is likely evaluating other recently available 2nd generation real estate for potential new stores.
Such as real estate vacated in the bankruptcies of Big Box retailers like Conn’s, Joann Fabrics and At Home.
These sites can be repurposed quicker—and at less cost—than new construction.
And they are often in prime suburban locations.
So whether or not Tractor Supply has saturated the core rural markets that built its business…
It certainly seems that the opportunities to add high margin business lines, new loyalty membership and secure available real estate all point in one direction:
The suburbs.