Tractor Supply Company to Acquire Online Pet and Animal Pharmacy

Tractor Supply Company announced last week it would acquire the specialty online pet pharmacy Allivet, adding to its portfolio and expanding its benefits to its loyalty customers. The retailer, which specializes in farm, home improvement, and animals and includes products and services related to pets, horses and livestock, had already partnered with Allivet to offer digital pet pharmacy services under the Tractor Supply brand, but the acquisition is set to increase its total addressable market by $15 billion, according to GlobalPETS, a B2B platform for pet industry professionals.

Tractor Supply didn't share the monetary details of the acquisition, saying only that it was an all-cash transaction that was expected to close in the company's first fiscal quarter of 2025.

"This strategic tuck-in acquisition exemplifies our commitment to delivering value and growth as we expand our total addressable market," said Hal Lawton, Tractor Supply’s president and CEO, in a press release.

Total Retail's Take: With Allivet licensed in all 50 states, this acquisition allows Tractor Supply to expand its customer base to places where it might not traditionally be found. The company said three-quarters of its 37 million loyalty customers are pet owners, and rates of pet ownership have gone up since the pandemic. Adding more pet-related products and services into its offerings is a natural extension of the Tractor Supply brand. The retailer caters to largely rural communities, with 50,000 employees across 2,250 stores in 49 states, according to company data. Bringing Allivet into its portfolio will potentially enable Tractor Supply to extend that reach into urban and suburban markets, augmenting its presence in rural communities.