Tractor Supply Company is doubling down on last-mile delivery, especially in rural America, to support its growing digital and B2B sales. As e-commerce sales exceeded $1 billion in 2024—up more than 340% in four years—the company aims to make its digital channel about 10–12% of total revenue by 2029, up from around 8% today.
Here’s what the strategy entails:
· In‑House Fulfillment for Bulky Items: Tractor Supply is hiring drivers and leasing pickup trucks and trailers to deliver heavy goods like 50‑lb cattle feed and chicken coops—a shift away from ill-fitted third-party providers.
· Leveraging Rural Store Footprint: With 2,300 stores, 10 distribution centers, and 10 mixing centers, Tractor Supply is using its rural presence to make self-delivery more efficient and personal—building trust by delivering directly to farms across gravel driveways and narrow lanes.
· Improved Customer Experience & Cost Savings: In-house deliveries yield nearly 10× lower returns, 13% higher customer satisfaction, larger average order sizes (nearly $400), and higher repeat orders compared to outsourced shipments.
· A Multi-Year Expansion Plan: By the late 2020s, Tractor Supply plans to handle 90–95% of its large-item orders in-house, shifting from today’s 15% coverage, while still using partners for smaller e-commerce items like apparel or pet accessories
