Nationwide retail chain Tractor Supply Co. is cultivating an ecommerce growth plan with Allivet, an online pet pharmacy licensed to do business throughout the United States.

Hal Lawton, president and CEO, Tractor Supply Co.

Tractor Supply said today it signed a definitive agreement to acquire Allivet, a seller of prescription and over-the-counter pet medications.

Tractor Supply sees a significant market opportunity

Tractor Supply asserts that Allivet provides “strategic partnership solutions” to customers through third-party retail and ecommerce channels and offers Tractor Supply — itself a multichannel merchant with more than $14 billion in sales — a way to grow its sales significantly by expanding its market. As of Sept. 28, Tractor Supply operated 2,270 stores along with its ecommerce site at TractorSupply.com.

For example, Tractor Supply says Allivet offers a quick way to build on its Neighbor’s Club customer loyalty program, noting that 75% of its members are pet owners.

“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,” says Hal Lawton, Tractor Supply’s president and CEO.

He adds that Allivet will also complement Tractor Supply’s portfolio offerings for equestrians and owners of companion animals and livestock. Overall, Tractor Supply figures Allivet brings it an opportunity to expand Tractor Supply’s “total addressable market by $15 billion.”

Ujjwat Dhoot, CEO of Allivet, says under its new owner “we can expand our reach and bring the purpose of our product and website to millions of customers.”

Allivet complements Tractor Supply’s PetSense

Since Allivet’s founding in 1992, it has developed a nationwide business licensed to sell in all 50 states. With three distribution centers, Allivet says it provides “a large majority of the U.S. with next-day delivery.”

Allivet will also complement Tractor Supply’s PetSense by Tractor Supply, a small-box pet supplies retailer with 205 stores across 23 states and an ecommerce site at PetSense.com.

Tractor Supply also reported today a 1.6% increase in net sales to $3.47 billion for its fiscal third quarter ended Sept. 28. (For the fiscal year ended Dec. 30, 2023, it reported a 2.5% increase in net sales to $14.56 billion.)

“We remain very excited about the future for Tractor Supply to better serve our customers, capture market share, generate consistent, profitable growth and create ongoing long-term value for our shareholders,” Lawton says. “Today’s announcement of our acquisition of Allivet, a leading online pet pharmacy, is a great example of unlocking new opportunities for growth.”

The acquisition, which is subject to regulatory approvals and other customary closing conditions, is expected to close in Tractor Supply’s first fiscal quarter of 2025.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. [email protected].

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