360 View Tractor Supply COMPANY

ractor Supply Company, a long-time What We’ll Cover specialty retailer, has emerged as a retail innovator and is evolving as it goes. T The company focused for decades on 38 The History of Tractor Supply 34 selling agricultural supplies to farmers, but now offers many of the same products carried by hardware stores and home centers to people choosing a rural lifestyle. 40 A Look at the Company Now6 This year, Tractor Supply reported that only a small fraction of its customers farmed full-time, and the majority are people who favor an increasingly popular 42 Looking to the Future38 lifestyle, which even in urban areas is grounded in sus- tainable, small-time farm practices and homesteading. While big-box stores’ growth seems to have crested, 44 SWOT Analysis Tractor Supply continues to boom. Its stores, which average about 16,000 square feet, are small enough for quick penetration into new markets. The company’s 45 Financial Trajectory: Growth shift from focusing on career farmers as customers has led to rapid growth within the past 18 years. In that time, Tractor Supply’s store count went up nearly 46 Exclusive Q&A with Tractor Supply 500 percent to 1,400 locations, with no stop in sight. President Greg Sandfort On the following pages, we will look at how Tractor Supply grew from a small specialty supplier to a rap- idly growing retail chain that sells a lifestyle. We will 48 Other Key Players in the Industry also analyze what makes Tractor Supply successful so you can learn from the company. To offer further understanding of the rural lifestyle industry, we also The information in this 360 overview was gathered by Hardware Retailing Photo Credit: Tractor Supply Co. highlight other large retail operations. staff from a variety of resources that are attributed throughout.

36 Hardware Retailing | June 2015 June 2015 | Hardware Retailing 37 360 Tractor Supply Company’s Humble Beginning

Today’s largest operator of retail farm and ranch In 1967, Tractor Supply went international, stores in the U.S. is on a fast track. Booming sales opening two subsidiaries in Canada, increasing to and ambitious growth initiatives are propelling five stores one year later. Tractor Supply Company forward into neighbor- In 1969, National Industries bought Charles hoods and rural communities across the country. Schmidt’s controlling interest in the company, But before we look to Tractor Supply’s successes which came at a surprise to executives and started and future plans, we’ll review the company’s a downward turn for the company. An unclear modest beginning as a mail-order catalog company. vision—the result of acquisitions, five different In 1938, Charles E. Schmidt Sr. of Chicago presidents, two ownership groups and inventory started selling tractor parts by mail to American that strayed from its traditional niche and family farmers. confused employees and customers—resulted in “Charlie Schmidt saw an opportunity for a Tractor Supply losing $13 million in 1980. mail-order business to supply fairly priced tractor After this loss, which was substantial for replacement parts to frugal farmers whose only a company earning less than $100 million in other option was to pay a premium to the dealer or sales, Tractor Supply made changes that led to a manufacturer of their equipment,” writes Nelson break-even year in 1982. The company has been Eddy in the book Work Hard, Have Fun, Make profitable every year since. Money: The Tractor Supply Story. That first year, the At the end of 1982, Tractor Supply put company sold $50,000 in tractor supplies by catalog. ownership back in the executives’ hands. For The catalogs listed 2,000 products on 24 pages. the first time in 25 years, “Tractor Supply wasn’t Within a year, Tractor Supply had opened its either a publicly held company or a publicly first retail store in rural Minot, North Dakota, in traded company,” according to Eddy. an effort to grow the business and target potential A new leadership team, a clear vision and a customers better. return to the farm-store niche and to the people At this time, Tractor Supply’s customer base who served the land kept the business growing. was 90 percent farmers, Eddy says, but after World Tractor Supply incorporated in 1982 in Delaware War II, the company moved closer to cities due to and again went public 12 years later. In 1994, farm consolidations and growing manufacturers. Tractor Supply stock began trading on the Nasdaq This move came with a name change to TSC. under the TSCO ticker symbol for $20 per share. At the time, Tractor Supply also became pub- As of 2014, Tractor Supply operated 1,382 stores licly traded on the Over-The-Counter Market on in 49 states, opening 107 stores in 2014 alone. All January 14, 1959, with an initial offering of $12 a of these stores are company-owned and -operated. share. In less than two years, Tractor Supply was Tractor Supply’s headquarters, or store support traded on the New York Stock Exchange. center, is located in Brentwood, .

Three Quick Facts About Tractor Supply Company 1 2 3

Tractor Supply operates under Mission statement: “Work In 2014, comparable-store three different store names hard, have fun and make sales for Tractor Supply in the U.S.: Tractor Supply money by providing legendary increased 3.8 percent over Company, Del’s Feed & Farm service and great products at 2013, for a 21st consecutive Supply and HomeTown Pet. everyday low prices.” quarter of growth.

Source: Tractor Supply Company 2014 Annual Report

38 Hardware Retailing | June 2015 360 A Closer Look at Tractor Supply Company

Customers executive vice president of merchandising and Logistics Tractor Supply’s customers are home, land, marketing, in a 2014 earnings call. “We are A substantial investment for Tractor Supply has pet and livestock owners, as well as DIYers who continuing to refine what we’re doing,” he says. been in logistics. Currently, Tractor Supply owns “live a conservative and self-reliant lifestyle,” Therefore, products will be different in new seven distribution centers with locations in Geor- according to the company’s 2014 Annual Report. stores opening out west than those in the north- gia, , , Maryland, Nebraska, Texas The customer base is also loyal, consistent and west. For example, a store in Utah carries bee- and Washington. Combined, these distribution growing, the company says. keeping supplies. centers have a capacity of 4.2 million square feet. “We went out there; we researched the market,” Construction is under way for an eighth dis- Product Categories Barbarick says. “We saw it in a lot of our com- tribution center in Casa Grande, Arizona, which Tractor Supply is the largest seller of products petitors and thought, well, we better put our best will be completed by the end of 2015. This center for the rural lifestyle, and the company has a foot forward when we move out there.” will support Tractor Supply’s western expansion. multitude of core categories to choose from. Trying various product assortments is part Nearly 70 percent of the company’s merchan- of Tractor Supply’s test-and-learn philosophy, dise flows through these centers, while vendors These categories are: which company leadership describes in numer- deliver the other 30 percent of products directly • Equine, livestock, pet and small animal ous company reports. to the stores. products, including items necessary for their health, care, growth and containment. Vendors Customer Service • Hardware, truck, towing and tool products. Tractor Supply uses both domestic and inter- Tractor Supply prides itself on its customer ser- • Seasonal products, including lawn and garden national vendors. It purchases products from vice. The company states in its annual report that Photo Credit: Tractor Supply Co. items, power equipment, gifts and toys. 800 vendors and, according to its 2014 Annual it is “committed to providing our customers reli- • Maintenance products for agricultural and Report, no single vendor represents more than able product availability and a high level of in- rural use. 10 percent of its inventory purchases. About 300 store service through our motivated, well-trained Omnichannel is an initiative that Tractor Supply • Work/recreational clothing and footwear. core vendors accounted for nearly 90 percent of store team members.” will continue to invest in. company purchases made in 2014. Tractor Supply strives to hire employees with “We ship about 30 percent of our products to Tractor Supply is also focused on localizing its Tractor Supply also offers private-label products farming and ranching backgrounds. the store, which… we think is great because it product mix to cater to regional needs. As more made to provide alternatives to national brands. To maintain employees who are courteous, will take our customer to the store and could stores are added out west, with locations farther Selling these exclusive brands “helps provide highly motivated and well-trained, Tractor lead to potential increase in sales at the store apart, Tractor Supply is trying to offer unique value for our customers and positions us as a Supply has implemented comprehensive training level,” Tony Crudele, executive vice president product mixes specific to locations. destination store,” according to the company’s programs. The programs include a thorough and CFO, says in the company’s fourth-quarter “You’re going to see a lot of localized 2014 Annual Report. In 2014, 31 percent of total on-boarding process, new store training, customer 2014 earnings call. products,” according to Steve Barbarick, sales were from the company’s private-label brands. service and selling-skills training, product knowledge training, management training and Brand Percentage of Sales by Each Major Product Category leadership development programs. “For Life Out Here,” Tractor Supply’s tagline, To monitor customer service levels, the com- is in reference to the rural lifestyle. The motto pany uses a third party to provide customer feed- is portrayed through the company’s partner- Livestock and Pet ...... 44% back. Based on the feedback, Tractor Supply rates ships and the products it sells. Annually, Tractor itself best in class. Supply runs promotions and weeklong events to interact with and serve the community. For Hardware, Tools, Online example, the company’s partnerships with local Truck and Towing...... 22% Tractor Supply’s e-commerce website, pet adoption agencies have helped find homes for TractorSupply.com, provides customers the 4,800 animals. ability to shop, research and purchase products Primary partnerships Tractor Supply Seasonal, Gift and online and have the items shipped to their maintains are with the 4-H and the National FFA Toy Products ...... 20% homes or offices or to company retail stores. The Organization. For both programs, Tractor Supply distribution center in Franklin, Kentucky, fulfills makes donations, hosts fundraisers and sponsors these online orders. events that grow awareness of the local chapters. Clothing and Footwear...... 9% The company recently “introduced an opti- “We support national organizations, such as mized mobile and tablet experience, improved FFA and 4-H, which promote and protect our the site response time and added additional lifestyle and the land it depends on, and focus on Agriculture...... 5% product offerings for vendor direct to customer educating younger generations,” president and Source: Tractor Supply Company 2014 Annual Report drop ships,” the 2014 Annual Report says. CEO Greg Sandfort says.

40 Hardware Retailing | June 2015 June 2015 | Hardware Retailing 41 360 Tractor Supply Company Looks to the Future

Growth more frequent store deliveries,” Sandfort says in a Tractor Supply anticipates opening more than 2014 earnings call. 110 new stores in 2015. This rapid expansion is part of its goal of operating 2,500 total stores in Sustainability the future. So far, Tractor Supply has identified As a partner of the SmartWay Program, a public- more than 700 markets for new stores. Most of the private initiative between the Environmental Pro- present and prospective store sites are located in tection Agency and companies that move products, rural communities across the U.S. Tractor Supply has made recent efforts to reduce waste across the company. Its distribution centers Logistics collectively reduce waste through recycling, with Late in 2015, Tractor Supply plans to open two 85 percent of their waste processed through recy- small distribution centers, which the company cling efforts, according to the 2014 Annual Report. calls mixing centers, in Texas. “These initiatives include energy management These facilities are “smaller cross-docking style systems, high-efficiency lighting and heating/air con- distribution facilities that handle many of our ditioning systems in stores, and recycling programs palletized products and faster-turning queue items, in our stores, distribution centers, and Store Support such as... shavings and wood pellets,” Sandfort Center,” according to the 2014 Annual Report. says. These centers will push high-bulk, high- velocity, low-value product. HomeTown Pet Stores “With our vendors delivering products directly Toward the end of 2014, Tractor Supply began to these mixing centers, which are located closer a new test-store model called HomeTown Pet. The to our stores, we can shorten our supply chain two pilot stores, located in Fairview and Franklin, stem miles and reduce in-store inventory levels to Tennessee, are new concept pet supply stores that provide high-quality products and services. “The stores offer products for a wide variety of Tractor Supply Company’s Plans of Expansion pets and animals, including cats, dogs, poultry, birds and horses as well as grooming and mobile 1,000 Stores Now vet services,” according to the 2014 Annual Report. While pet products sell well in Tractor Supply Stores in the Future 899 stores already, the purpose of these HomeTown Pet 825 stores is to gain added insight into the pet market, 800 helping the company better understand the needs of pet owners.

Better Planning 600 Along with improved logistics, energy 536 534 management and price optimization systems, Tractor Supply is improving its merchandising 424 through its Merchandise Innovation Center, a new Store Count 400 352 planogram facility that, according to Sandfort, “gives us the ability to review, analyze and improve multiple planograms and floor sets in a full-size 189 store environment before their proposed rollout.” 200 99 Omnichannel Some of Tractor Supply’s online priorities in 2015, as noted in its 2015 Investment Community 0 Event presentation, are to upgrade its current WEST MIDWEST SOUTHEAST NORTHEAST platform, enhance online content and provide Source: 2015 Investment Community Event Presentation, alternate delivery methods, continuously Tractor Supply Company improving its omnichannel efforts.

42 Hardware Retailing | June 2015 360 360 Tractor Supply Company SWOT Analysis Upward Growth Trajectory: A Financial Analysis

Tractor Supply Company Net Sales and Net Income in Millions

STRENGTHS WEAKNESSES Net Income $5,712 $5,165 $371 Net Sales $4,664 $328 • Lifestyle growth: As the leading rural lifestyle • Tractor image: Tractor Supply has traditionally $4,233 $276 operator, Tractor Supply’s customer base is been positioned as a farm store, so suburban and $3,638 $223 expanding due to the recent popularity of urban customers may be hesitant to shop there. $168 sustainability and homesteading practices. • Not a household name like Lowe’s and • Footprint/store model: An average store has Home Depot: Tractor Supply does not have the around 16,000 square feet of in-store selling space. brand recognition other retail brands have and is $759 Tractor Supply can easily expand into new markets not as well-known. $16 .4 due to the manageable store size. • Advertising: While Tractor Supply uses circulars • Positive growth year over year: and most forms of social media, its overall 2000 2010 2011 2012 2013 2014 The fourth quarter of 2014 was the 21st advertising efforts are small compared to other Source: Tractor Supply Company’s Annual Reports straight quarter of positive companies, with no Twitter comparable-store sales for presence or national Tractor Supply. It was also television commercials. the 27th consecutive quarter TSCO Stock Performance from 2009 to 2014 of positive comparable- S W Graph assumes $100 was invested on December 26, 2009 store transaction counts, $600 leading to a growing stock Tractor Supply Company price and dividends. S&P Retail Index $500 S&P 500 $400

OPPORTUNITIES THREATS $300

• Expansion/growth: • Weather: For most $200 Tractor Supply opened retailers, weather is a more than 100 stores in threat, but even more so for $100 both 2013 and 2014 and O T Tractor Supply since farmers 2009 2010 2011 2012 2013 2014 has a long-term goal of and gardeners are highly Source: Tractor Supply Company’s 2014 Annual Report operating 2,500 stores impacted by weather. (with no timeline attached). • Wide range of competition: There are an • New types of customers: As the sustainable increasing number of competitors in the Tractor Supply Company’s Stores Per Year living and homestead movement continues, marketplace as more retailers gravitate toward Tractor Supply’s customer base will broaden, the rural lifestyle format. 1,382 1,276 appealing to a variety of customers. 1,176 • Cyber security: Tractor Supply acknowledges 1,085 1,001 • New varieties of stores: Due to its test-and- in its 2014 Annual Report that while it takes learn strategy, Tractor Supply is testing different precautionary measures to protects its customers’ variations of stores, such as its HomeTown Pet and vendors’ data, no protection is ever stores, to see what opportunities are present in guaranteed. Recent Target and Home Depot the industry. breaches reflect that. 305

2000 2010 2011 2012 2013 2014 Source: Tractor Supply Company’s Annual Reports

44 Hardware Retailing | June 2015 June 2015 | Hardware Retailing 45 360 From the President’s Perspective

Greg Sandfort our team members to ensure we stay current on We understand and support this lifestyle because President and CEO of Tractor Supply Company what our customers want and expect from Tractor “ since 2012. He has served in executive leadership Supply, and will continue to do so. We believe we live it ourselves and share the same values and within the company since 2007, and has many inventory management is a core competency and prior years of experience working in retail. strategic advantage for Tractor Supply. passions as the customers we serve: honesty, integrity, hard work, family and a balanced lifestyle.” Hardware Retailing: TSC has changed a lot HR: Why do you think TSC has been able since the company began, transitioning from to navigate this transition while other similar a specialty supplier to a mainstream retail businesses haven’t? Tractor Supply continues to implement sophis- continually add product information and player. What are key things TSC has done GS: Tractor Supply has been successful by ticated systems and supply chain operations to high-quality content/know-how information, during this transition that has helped the staying true to our missions and values, investing efficiently support continued growth. For example, position ourselves as the authority of the company adapt to its new role and the new in team member training and hiring and delivering in Q4 FY 2014, we purchased land and have started rural lifestyle our customers enjoy and offer customers it serves? legendary customer service and leadership, all of construction on our new distribution center in Casa the products our customers need through GS: Throughout our 77-year history, we have which create a strong customer loyalty. Grande, Arizona, and also plan to open two smaller e-commerce. We are ramping up efforts nicely, been committed to the same set of missions Also important to note is that we sell products distribution centers in our Texas region in 2015. but e-commerce is not as big of a business for us and values that still drives our principles and people need and use every day. We sell them at great Additionally, our new demand planning system as it may be for other retailers. strong culture today. Our mission is to be the prices, focus on in-stock availability and make it very has been rolled out to the first few merchandise most dependable supplier of basic maintenance easy/convenient to get in and out of our stores. categories. The new system analyzes historical and HR: Can you tell us a little bit about the products for the rural lifestyle consumer. real-time sales patterns and uses predictive model- development of the “For Life Out Here” tagline We are constantly evolving our offerings to HR: What does today’s typical TSC customer ing to make inventory decisions throughout the and how it fits into TSC’s brand position strategy? meet the changing needs of our customers. We look like? year. As the buying patterns and needs of customers GS: “For Life Out Here” speaks to our custom- regularly solicit feedback from our customers and GS: We serve a unique niche as a one-stop shop in certain markets evolve, this will help to ensure ers’ passion for living a rural lifestyle; one that for those living the rural lifestyle. Our customers that we are able to better react to those changes. revolves around family, community, dedication are hardworking, self-reliant do-it-yourselfers who We will methodically roll out the system across our to the land, hard work and the animals they care take pride in their work. They want quality prod- merchandise categories throughout 2015, which for and love every day. We understand and sup- ucts that will help them get the job done right and should further improve inventory allocation. port this lifestyle because we live it ourselves last over time. They are landowners who enjoy the and share the same values and passions as the outdoors and value their land, pets and animals. HR: The concept of living a rural lifestyle customers we serve: honesty, integrity, hard seems like it can be radically different based work, family and a balanced lifestyle. HR: Do you think consumers’ desire to on geography. How does TSC keep its product live a more rural lifestyle resonates with selection and messaging relevant to customers HR: How do you see the rural lifestyle younger generations? in diverse areas? market changing over the next several years? GS: As we continue to learn more about GS: Our broad product assortment and physi- GS: We believe that a fragmented market gives our customers through a growing database, cal store size are tailored to meet the needs of our Tractor Supply Company the opportunity to we have found that the products we sell, plus customers in various geographic markets. We pride become the go-to retailer of choice, supplying the aspirational lifestyle our stores and team ourselves on the ability to adapt merchandise in our basic maintenance products necessary to main- members represent, appeal to a larger consumer stores based on the needs of the particular market. tain the rural lifestyle. base. We serve a lifestyle that is self-reliant and Well before Tractor Supply enters a new market, promotes sustainable living, which we believe our team does extensive research focusing on key HR: TSC engages in a number of resonates with all of our customers and is metrics, census data and Department of Agriculture philanthropic efforts like its work with 4-H and particularly important to younger generations. data. We also look at what the current competition FFA. Why are those important to the company? is doing and doing well, where their gaps are and GS: We are committed to giving back to the HR: What have been some of the biggest how we could compete. We have had great success communities we serve and supporting the challenges TSC has overcome as it has using this formula, and use it throughout our prod- programs that strengthen them through different broadened its consumer base? uct assortments and strategic marketing approaches. philanthropic initiatives. Some promote learning GS: We have grown our business effectively about agriculture and farming practices. Others despite challenging economic environments and HR: How has online retailing played a role promote leadership and life skills through volatile weather trends. We believe our results in TSC’s growth to this point? How do you see competitions and hands-on activities. But Photo Credit: Tractor Supply Co. are a function of the balanced approach we take it playing a role moving forward? whether the focus is the land or the lifestyle,

Tractor Supply intentionally hires employees, such as the one above, to run our business, through managing sales, GS: We are taking a calculated approach to we are committed to partnerships that make the with farming and ranching backgrounds. margins, expenses and capital investments. building an omnichannel business in order to most sense and the biggest difference.

46 Hardware Retailing | June 2015 June 2015 | Hardware Retailing 47 360 Other Key Players in Rural Lifestyle Retailing

ractor Supply is now the retail leader for Huntington Asset Advisors, told Forbes at the in targeting consumers who choose a end of 2014. He named Tractor Supply Company Big R Stores rural lifestyle rather than a farming as one of the companies that will benefit from T profession. The realization that most the trend. • Big R is the name of multiple • The largest Big R chains are of its customers weren’t career farmers has “…I think it gives a sweet spot for the U.S. independent farm and ranch headquartered in Colorado and helped the company grow. because we have such a good proportion of store chains. Each chain , and both started in the “It gave us a license to adjust our assort- arable land. At the same time, a lot of that same is individually owned, but 1960s as family businesses. ment and gives us a much broader reach,” CFO rural community is benefitting from fracking and licensed to operate under the • Big R of Lamar, headquartered Anthony Crudele says an article from Investor’s production of energy now. So we’re seeing capi- Big R brand name. in Pueblo, Colorado, owns 19 Business Daily. Fewer than 10 percent of Tractor tal move into that area,” Bateman says. • Big R stores sell hardware, stores in Colorado, New Mexico Supply customers farm full-time, according to Like Tractor Supply, the following businesses are automotive, sporting goods, and Texas. Illinois Big R Stores of the article. vying for a growing group of customers who choose lawn and garden, fencing, Watseka, Illinois, operates Smaller farm supply retailers have followed small-time rural living or urban homesteading. Only livestock equipment, clothing 17 locations in Illinois and Indiana. the company’s model, targeting customers who Southern States Cooperative is older than Tractor and boots, tack and other Multiple smaller Big R chains are hobby or small-time farmers, rural homeown- Supply, and that organization serves primarily as a agricultural supply products. operate across the country. ers and pet lovers. Tractor Supply’s rapid expan- farmer-owned co-op rather than as a retailer focused sion plan expresses confidence that the market on operating stores. Wilco, like Southern States, is a isn’t shrinking, and other retailers and investors co-op that also owns stores. see the industry as ripe for growth. The others have followed Tractor Supply’s “[The] global economy and the global model more closely, opening as small family Mills Fleet Farm demographics are such that rural populations businesses that served American farmers and are going to continue to expand,” Randolph then moved toward more of a rural lifestyle • The business is a full-service Iowa, Minnesota, North Dakota Bateman, president and chief investment officer focus over time. supplier of products for life, and Wisconsin. work, home and recreation • Stewart C. Mills Sr. started the and sells gear for fishing and family business in Brainerd, hunting, farm and pet supplies, Minnesota, when he bought an tires and items across categories automobile company. The family such as clothing and footwear, opened its first store selling lawn and garden and toys. Blain’s Farm & Fleet directly to farmers in 1955 in • Mills Fleet Farm is headquartered Marshfield, Wisconsin. • Blain’s is a specialty discount She has worked for the com- in Brainerd, Minnesota. • The third generation of the retailer that sells farm sup- pany for more than 30 years, • The company owns and operates Mills family now owns plies, such as tractor imple- and took executive leadership 34 retail store locations across Mills Fleet Farm. ments and livestock diet of the family business in 2014 supplements, but also house- when her brother Robert Blain wares, home and office fur- retired from the role. niture, clothing and footwear, • Jane Blain Gilbertson and Robert pet and wild bird products, Orscheln Farm & Home Blain bought the company from automotive tools and parts and the rest of their family about home improvement items. • Orscheln stores sell rugged Illinois, Indiana, Iowa, Kansas, 15 years ago. Gilbertson is now products, including supplies for Kentucky, , Nebraska • The parent company, Blain’s the sole owner. farm and ranch, lawn and garden, and Oklahoma. Supply, is headquartered in • Blain’s Farm & Fleet employs livestock and feed, pet care, Janesville, Wisconsin. • W.C. Orscheln opened the more than 4,000 people. animal health, home improvement, family’s first farm and home store • The chain operates 36 stores automotive, hardware, fencing, • The company is active in phi- in 1960 in Sedalia, Missouri. in Illinois, Iowa and Wisconsin. western clothing and footwear and lanthropy, supporting the Bert sporting goods. • W.C. Orscheln’s grandson, Barry • Brothers Claude and Bert Blain and Claude Blain Memorial L. Orscheln, is company CEO. started the company in 1955. Scholarships and organizations • The company headquarters is in Moberly, Missouri. • The president and CEO is Jane such as the American Heart • The Orschelns’ entrepreneurship Blain Gilbertson, who is the Association, the Kids Helping • The company operates more has resulted in more than daughter of founder Bert Blain. Kids program, FFA and 4-H. than 160 stores in Arkansas, 12 privately owned companies.

48 Hardware Retailing | June 2015 June 2015 | Hardware Retailing 49 360 Other Key Players in Rural Lifestyle Retailing

Rural King

• Rural King’s stores product • The company owns 80 stores in mix includes livestock feed, , Illinois, Indiana, Kentucky, farm equipment, lawnmowers, , Missouri, , work wear, fashion clothing, , Tennessee and housewares and toys. The West . company promotes itself as a • Business partners Kermit retailer with everyday low prices Speer and Keith Beaird started and as an industry leader in the company in 1960 in product knowledge. Mattoon, Illinois. • Rural King’s corporate • CEO Alex Melvin represents the headquarters is located in third generation of the Speer Mattoon, Illinois. family to operate the company.

Southern States Cooperative

• Southern States is one of the , South Carolina, nation’s largest agricultural coop- Virginia and under eratives, providing a wide array of the Southern States brand. The farm products, including fertilizer, cooperative also services 1,200 seed, livestock feed, pet food, ani- independent retailers in 23 states. mal health supplies, fencing wire • About 150 farmers started the and petroleum products. cooperative in 1923. In 1960, • The farm supply and service co-op the organization formed what is is based in Richmond, Virginia. now the largest seed-breeding research organization in the world. • The organization owns and operates 180 retail stores in • Jeff Stroburg is the co-op’s Georgia, Kentucky, Maryland, president and CEO.

wilco

• Wilco’s farm stores sell work two other businesses: agronomy wear and footwear, hardware, centers and bulk petroleum. paint, lawn and garden supplies, • The organization has $230 million pet food and supplies, livestock in sales and 700 employees. supplies, feed and fencing. • Wilco began under another name • The farmer-owned cooperative is in the 1930s. In 1967, that original headquartered in Mount Angel, Oregon. The organization has co-op merged with four other 3,000 members. cooperatives, forming Wilco. The name Wilco stands for Willamette • The cooperative owns and Valley Cooperatives. operates 15 retail stores in Oregon and Washington. In • Doug Hoffman is Wilco’s addition to the stores, Wilco has president and CEO.

50 Hardware Retailing | June 2015