The GigReporter

Tractor Supply Powers Up Final-Mile Delivery to Fuel Growth

Tractor Supply is taking a bold step forward in logistics by expanding its final-mile delivery network—a move aimed at boosting both digital sales and business-to-business (B2B) operations.

With over 2,300 stores nationwide, the retailer is now hiring drivers and renting fleets of pickup trucks and trailers to handle deliveries directly, especially for bulky items like cattle feed and chicken coops. This shift allows Tractor Supply to better serve its core customer base in rural areas, where traditional third-party delivery services often fall short.

“We understand these markets and have the brand equity with our customers,” said Colin Yankee, Chief Supply-Chain Officer.

Stores as Fulfillment Hubs

Tractor Supply is leveraging its stores, distribution centers, and mixing centers to fulfill more orders locally. This strategy mirrors moves by other major retailers like Walmart and Target, who are turning stores into mini distribution hubs.

Digital Sales on the Rise

The company’s digital sales have surged over 340% in four years, reaching over $1 billion in 2024. With a goal to hit 10–12% of total sales by 2029, Tractor Supply is investing in infrastructure to support this growth.

Why Final-Mile Matters

Tractor Supply’s expansion into final-mile delivery is more than just a logistical upgrade—it’s a strategic move to deepen customer relationships and improve service in rural markets. In areas where the company handles its own deliveries, average order sizes climb to nearly $400, with noticeable boosts in customer satisfaction, repeat purchases, and lower return rates. Many customers live on gravel roads or properties that are hard to reach with standard box trucks, making Tractor Supply’s own drivers—who know the terrain and the people—a trusted and efficient solution.

A Hybrid Approach

While Tractor Supply will continue using partners like DoorDash, Roadie, UPS, and FedEx for smaller items, it sees its own fleet as the best solution for large, rural deliveries.