Dive Brief:
- Tractor Supply has launched a pet and animal pharmacy service, dubbed Tractor Supply Rx, the rural lifestyle retailer announced Monday. The move integrates the company’s digital pharmacy business into Tractor Supply and Petsense stores.
- Customers can shop for pet and animal medications, enroll in automatic delivery and access pharmacy advice through the service. Tractor Supply Rx also offers a price-match guarantee.
- The retailer is offering rewards points to its Neighbor's Club loyalty members who buy prescriptions through the service, per the press release.
Dive Insight:
Tractor Supply is swiftly leveraging online pet pharmacy Allivet’s services after buying the company for an undisclosed sum last year.
Allivet was a longtime partner of the retailer prior to the acquisition, and the deal was a way for Tractor Supply to introduce a “convenient, low-cost pet and animal pharmacy solution” to its Neighbor’s Club members, the company said at the time. Around 75% of the retailer’s 38 million loyalty members are pet owners, and the all-cash acquisition deal grew the retailer’s total addressable market by $15 billion.
“Through our swift integration of Allivet, we can scale this digital business into our stores to provide a compelling animal health offering wherever our customers choose to shop,” Rob Mills, chief technology, digital and corporate strategy officer at Tractor Supply, said in a statement. “We are now able to provide our pet customers with seamless, trusted access to the best value in medications and the expert guidance needed to help their pets and animals thrive — along with their favorite food, treats, toys and more.”
In addition to allowing customers to earn rewards via Tractor Supply Rx, the retailer has made it easier to access perks to its loyalty program in other ways. Last March the company made multiple changes to its Neighbor’s Club program, including lowering the threshold to reach Preferred status and offering customized perks to shoppers. In 2024, the loyalty program attracted a record number of new customers and retention levels, Tractor Supply CEO Hal Lawton said earlier this year.
Neighbor’s Club members account for 85% of sales at the company’s Petsense brand and 80% of sales at its namesake company, according to Lawton.
In its latest quarter, net sales increased 3.1% year over year to $3.8 billion, while comparable store sales were relatively flat. Net income in Q4 decreased 4.6% to $236.4 million compared to the year-ago quarter.
Last June, Tractor Supply ended its diversity, equity and inclusion roles, ceased support for Pride events and voting, and halted its efforts to reduce carbon emissions. The retailer's decision to walk away from its previous commitments prompted backlash on social media.
