Tractor Supply enters pet pharmacy market with Allivet acquisition
The agreement is expected to increase the US retailer’s total addressable market by $15 billion (€13.8B).
American farm, home improvement and pet retailer Tractor Supply has announced a definitive agreement to acquire Allivet, an American online pet pharmacy headquartered in Florida.
The company views this acquisition as an opportunity to provide its 37 million Neighbor’s Club loyalty customers – 75% of whom are pet owners – with a cost-effective way to access medications and specialty products for their furry companions.
The transaction is expected to close in Q1 of Tractor Supply’s 2025 fiscal year (FY) and increase the company’s total addressable market by $15 billion (€13.8B).
“This strategic tuck-in acquisition exemplifies our commitment to delivering value and growth as we expand our total addressable market,” says Tractor Supply’s President and Chief Executive Officer Hal Lawton.
The company operates 2,270 stores in 49 states and owns Petsense, a small-box pet specialty supply retailer with 205 stores in 23 states.
Market benefits
As a licensed pet pharmacy in all US states with 3 distribution centers and next-day delivery capabilities, Allivet will offer Tractor Supply customers access to branded medications, expert pharmacy advice and automatic delivery through its auto-ship program.
The company is already an established partner for American pet businesses like the American Kennel Club (AKC) and Fetch Pet Insurance.
Its proprietary “PetRx-as-a-Service” platform allows it to provide auto-ship services and expert pharmacy advice.
Latest financials
Tractor Supply’s net sales in the 3 months ending 28 September were $3.47 billion (€3.21B), a 1.6% increase from $3.41 billion (€3.15B) during the same period in 2023.
Gross profit increased 3.2% to $1.29 billion (€1.19B) from $1.25 billion (€1.15B) in Q3 of FY2023.
The Tennessee-based retailer expects its net sales to reach $15 billion (€13.86B) by the end of 2024.
