Tractor Supply to Bolster Pet Care Offerings With Allivet Acquisition

Tractor Supply Company, Klarna

Rural lifestyle retailer Tractor Supply Company plans to bolster the products and services it offers for companion animals, equestrian and livestock customers by acquiring online pet and animal pharmacy Allivet.

The retailer signed a definitive agreement to acquire the pharmacy and expects the transaction to close in Tractor Supply’s fiscal first quarter of 2025, subject to customary closing conditions, according to a Thursday (Oct. 24) press release.

“This acquisition enhances the benefits we can offer to our 37 million Neighbor’s Club members with an easy and cost-effective solution to obtain medications and specialty items for their pets and livestock,” Tractor Supply President and CEO Hal Lawton said in the release. “Allivet is a best-in-class platform with an exceptional management team and a robust financial profile.”

Tractor Supply operates 2,270 Tractor Supply stores in 49 states and 205 Petsense by Tractor Supply stores in stores in 23 states, according to the release. Petsense is a small-box pet specialty supply retailer.

Allivet provides prescription and over-the-counter pet medications and provides a “PetRx-as-a-Service” platform whose partners include Tractor Supply as well as American Kennel Club (AKC), Fetch Pet Insurance and others, the release said.

With the planned Transaction, Tractor Supply aims to leverage its store footprint and digital offerings to expand Allivet’s reach, and gain share of wallet with Tractor Supply’s 37 million Neighbor’s Club members, three-quarters of whom are pet owners, per the release. The company said this will expand its total addressable market (TAM) by $15 billion.

“As part of Tractor Supply, we will accelerate our growth and innovation to continue to help pets live long healthy lives by making it easier for pet owners to care for them,” Allivet CEO Ujjwal Dhoot said in the release.

Walmart is another retailer that has been expanding its pet care offerings. The retailer said Oct. 8 that it is widening access to its in-person and virtual veterinary care, grooming services, pet prescription and food supplies.

In August, online pet product retailer Chewy said that its veterinary clinics are helping drive sales. The company opened two more Chewy Vet Care clinics during the most recent quarter.