Tractor Supply will close 75 of its 209 Petsense pet stores, reducing the chain by more than a third. The decision aims to redirect resources toward higher-return businesses, particularly its recently acquired veterinary services division.
The Brentwood, Tennessee-based retailer revealed the closures during its second-quarter earnings call on July 23. It did not specify which locations will shut down but confirmed roughly 125 Petsense stores will remain across 23 states.
Stores operating at a loss
CEO Hal Lawton stated performance varies widely across the Petsense locations. The 75 stores marked for closure operate at negative four-wall cash flow. Removing those losses will free up capital for reinvestment in the company’s core operations.
The closures will incur $71.7 million in impairment and other charges, including a $5.9 million inventory write-down. A Boston-based firm, Gordon Brothers, will manage the lease dispositions.
Petsense launched in 2005 and was purchased by Tractor Supply in September 2016 for $145 million. The chain serves small and mid-size communities, offering pet food and supplies. Some locations also provide grooming and training services.
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Focus shifts to veterinary services
Tractor Supply has expanded pet food and supply selections in its main stores alongside livestock feed. However, the company now prioritizes its veterinary services division following the second-quarter acquisition of VIP Petcare.
The Eagle, Idaho-based business runs clinics in about 2,700 retail locations, including 1,700 Tractor Supply stores. Acquisition costs reached $9.5 million.
Lawton explained the remaining Petsense stores will integrate into the broader pet ecosystem the company is developing. This adjustment occurs as Tractor Supply scales back other growth plans, lowering its 2026 new-store target for flagship locations from 100 to 85-90 openings.
During the second quarter, the company opened 28 new Tractor Supply stores and three new Petsense locations. The latter will no longer be part of its expansion strategy.
The move to close underperforming Petsense stores reflects a wider retail trend. Companies increasingly shed unprofitable assets to protect margins. For Tractor Supply, this step demonstrates confidence in its veterinary services business, a sector attracting more investment as pet ownership grows and owners seek specialized care.
