Key Takeaways:
- Tractor Supply closing 75 underperforming Petsense locations nationwide
- CEO Hal Lawton cited negative four-wall cash flow at those stores
- Company cut 2026 new-store target to 85-90 from 100
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Tractor Supply to close 75 Petsense stores, slows 2026 expansion
Tractor Supply Co. plans to close 75 Petsense stores after the pet-supply chain posted negative four-wall cash flow, Chief Executive Officer Hal Lawton said.
"These stores have been underperforming for some time, and we made the decision to close them as part of our broader portfolio review," Lawton said on the company's second-quarter earnings call.
The closures affect about 36% of Petsense's 209 locations across 23 states. Tractor Supply also lowered its 2026 new-store target to a range of 85 to 90, down from an initial goal of 100, redirecting capital toward remodeling existing locations, technology upgrades and delivery expansion.
The restructuring comes as Tractor Supply reported a 1.5 percent decline in comparable-store sales, which the company attributed to rising fuel prices and reduced discretionary spending among its rural customer base. Many of those customers travel long distances to shop, primarily using pickup trucks, making them more sensitive to fuel-cost changes.
Petsense, founded in 2005 and acquired by Tractor Supply in 2016 for an undisclosed sum, operates as a specialty pet-products chain offering food, supplies and services for dogs, cats and other animals. The company has not yet disclosed which specific locations will close or a timeline for the closures.
The store closures signal that Tractor Supply's pet-segment strategy is under pressure as consumer spending shifts. Investors will watch the company's next quarterly report for updates on Petsense's remaining footprint and whether further restructuring is planned.
This article is for informational purposes only and does not constitute investment advice.
