Does Walmart Own Tractor Supply In 2023? (Not What You Think)
No, Walmart does not own Tractor Supply Company (TSC) in 2023. Despite some similarities between the two retailers and their rural customer bases, Tractor Supply operates independently as a publicly-traded company without any ownership from Walmart.
As a successful Amazon FBA seller myself, I understand the importance of researching major retailers, especially for niche products. So I wanted to dig into this question and share my insights with you!
While it‘s easy to assume a connection based on location patterns and product assortment, the truth is that Tractor Supply fills a unique market role that Walmart cannot replicate. Below I’ll outline the key facts so you can better understand this relationship as you develop your own retail strategies.
Who Actually Owns Tractor Supply Company?
First, let’s establish who does own and operate Tractor Supply Company…
Tractor Supply is a publicly traded corporation on the NASDAQ exchange under the ticker symbol TSCO. The company was founded in 1938 and maintains its corporate headquarters in Brentwood, Tennessee.
According to Tractor Supply’s 2022 Annual Report, no single entity holds more than 12% ownership. The largest shareholders are:
- The Vanguard Group: 11.8%
- BlackRock Fund Advisors: 7.7%
- Select Equity Group: 5.7%
Thousands of individuals and institutional investors makeup the rest of the ownership, with stocks widely held. So while no sole owner, public shareholders collectively operate Tractor Supply as an independent, publicly-traded enterprise.
For comparison, Walmart remains a private family-owned company. The Walton heirs own about 50% of Walmart through personal holdings and a family foundation:
Shareholder | Ownership Percentage |
---|---|
Rob Walton | 16.3% |
Jim Walton | 12.1% |
Alice Walton | 12.0% |
Ann Walton Kroenke | 6.3% |
Nancy Walton Laurie | 6.3% |
As you can see, the ownership profiles of these two retailers are distinctly different. Walmart maintains private family control, while Tractor Supply ownership is dispersed across public markets.
Now that we’ve cleared up the ownership status, let’s examine why some consumers might still associate these two brands.
Why Do People Think Walmart Owns Tractor Supply?
Despite being completely separate companies, I can understand why some consumers associate Walmart and Tractor Supply. Let me share a bit of insight on this from my background:
Overlapping Rural Customer Base
Both brands target a similar rural farming and ranching demographic. Around 30% of Tractor Supply stores are located in towns with a population below 20,000 people. Walmart also positions Supercenters in small agriculture-heavy towns. This inevitably leads to competition for the same customers.
Big-Box Store Formats
The warehouse store formats also look quite similar. Tractor Supply stores average 15,500 square feet. While much smaller than the 180,000 square foot Walmart Supercenter, they adopt a comparable no-frills interior warehouse aesthetic. This can make the shopping experiences feel aligned.
General Merchandise Categories
They offer overlapping selections across categories like livestock feed, pet supplies, lawn & garden, workwear, fencing, and truck accessories. As a farm store, Tractor Supply goes deeper in specialty agriculture merchandise, but a Walmart in farm country will carry a subset of comparable items.
Proximity of Store Locations
Out of Tractor Supply’s over 2,000 stores, about 1,500 are located within 15 miles of a Walmart. This physical proximity in rural areas contributes to a perceived connection between the two brands. Shoppers switching between stores can easily confuse the detached retailers.
Let’s explore some examples of how their product selections overlap.
Where Do Walmart and Tractor Supply Overlap?
Based on my research, here are some key products sold at both Walmart and Tractor Supply:
Pet Supplies
- Pet food, treats
- Crates, kennels
- Toys, beds
- Grooming tools
- Medications
Farm/Ranch Equipment
- Fencing/gates
- Feeders and waterers
- Animal health medications
- Stalls, mats, and hutches
- Tools like pitchforks, rakes, hoses
Clothing/Footwear
- Jeans, tees, hats
- Boots, gloves
- Overalls, jackets
Lawn & Garden
- Soil, fertilizers
- Plants, seeds
- Tools like rakes, shovels
- Mowers, tractors
Auto/Trailer
- Hitches, connectors
- Ramps, jacks
- Tie downs, straps
- Trailer lights, winches
But keep in mind Tractor Supply offers much more depth in specialty merchandise for agriculture, livestock, equine, and rural living. The overlap with Walmart is mostly limited to commodity type products.
For detailed product assortment analysis, Tractor Supply stocks approximately 17,000 SKUs per store compared to Walmart Supercenters carrying around 120,000 SKUs. The TSC mix tilts heavily toward farm-specific merchandise, while Walmart provides general retail goods for all shopping needs.
Next let’s examine the notable size difference between stores of these two brands.
Comparing Walmart Supercenter and Tractor Supply Sizes
Metric | Walmart Supercenter | Tractor Supply |
---|---|---|
Average Store Size | 180,000 sq. ft. | 15,500 sq. ft. |
Total US Stores | ~3,500 | ~2,000 |
SKU Count | ~120,000/store | ~17,000/store |
Walmart Supercenters generally occupy around 180,000 square feet – nearly 10x larger than the average 15,500 square foot Tractor Supply store.
With vastly more space, Supercenters can offer a full hypermarket experience combining extensive grocery assortments and general merchandise. Tractor Supply allocates their limited floor space to specialized farm merchandise.
The smaller TSC concept also adapts better to serving rural towns lacking space to accommodate massive big-box stores. Their real estate flexibility and lean operation allows Tractor Supply to profitably penetrate farming communities underserved by major chains.
Tractor Supply plans to open over 800 new stores by 2027, expanding deeper into rural markets while sustaining impressive sales growth:
Year | Net Sales | Same Store Sales Growth |
---|---|---|
2021 | $12.7 billion | +18.9% |
2020 | $10.6 billion | +24.4% |
2019 | $8.4 billion | +5.1% |
By staying focused on their core customers and not directly competing against Walmart’s “one stop shop” proposition, Tractor Supply wins with a tailored brand and shopping experience.
The Bottom Line
While these two leading retailers share some surface similarities that cause consumer confusion, Walmart and Tractor Supply operate as completely distinct businesses.
Tractor Supply smartly fills a niche, winning over rural shoppers seeking specialized products and expertise in farming/ranching. Their smaller format neighborhood feel provides a differentiated experience from impersonal sprawling Walmart superstores.
With no ownership connection between the chains, Tractor Supply is positioned for continued growth and leadership in the agriculture retail space. They complement Walmart, not compete directly against them.
So in summary: no, Walmart does not own Tractor Supply in 2023 or ever in the companies’ 80+ years of combined history. But they both serve important roles in meeting the needs of countryside communities!
I hope this overview clears up any confusion over the relationship between Walmart and Tractor Supply. Let me know if you have any other retail questions! I’m always happy to share insights from my experience as an Amazon seller.