As Sales Grow, Tractor Supply, Visa Try to Woo Constrained Consumers

Rural lifestyle retailer Tractor Supply Co. said it will introduce a Visa credit card in the coming weeks in an effort to help customers feeling the pinch of inflation.

The company made the announcement on its earnings report Thursday (Oct. 20), as it reported its 10th consecutive quarter of sales growth, driven by what it said was consumer demand for “every day, needs-based merchandise.”

According to its results, Tractor Supply’s net sales for the third quarter rose 8.4% to $3.27 billion compared to $3.02 billion in the third quarter of last year. Comparable store sales climbed 5.7%, versus an increase of 13.1% in the prior year’s third quarter.

The company has had a string of good fortune this year, most recently with last week’s finalization of its purchase of Orscheln Farm and Home. At the time, CEO Hal Lawton noted Tractor Supply was on pace to hit several other milestones, including yearly revenues of more than $14 billion.

Read more: FTC Clears Field for Tractor Supply’s Orscheln Deal

To help fuel sales, the company is rolling out its Visa card, which gives customers all the perks of its private-label card, along with rewards on purchases of things like gas.

Tractor Supply also gives customers access to Tractor’s Supply’s Neighbors Club, which Lawton referenced as one of the company’s success stories during a call with investors.

He said the program has 27 million members, many of them higher-income customers. After adding the Neighbor’s Club to its Petsense brand this year, those members now account for 35% of Petsense sales.

However, Lawton also put up some warning flags, predicting a labor market that would continue to be “constrained … particularly on the front line.” He also forecast “tepid” economic growth, with inflation continuing into next year.

Inflation is weighing heavy on consumers’ minds, according to “The New Reality Check,” a study by PYMNTS and LendingClub, which found that shoppers feel price increases especially acutely when buying food.

See more: 89% of Consumers Feel Inflation at the Grocery Store

Nearly seven in 10 consumers have found product price increases for groceries to be very or extremely considerable, while another 20% found these increases somewhat considerable.

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