 has been getting more into the grill category this year. They announced previously that they've begun selling Weber products, which was a big move for the rural retailer.){kind=link}
Tractor Supply (NASDAQ:TSCO) has been getting more into the grill category this year. They announced previously that they’ve begun selling Weber products, which was a big move for the rural retailer.
In their earnings release today there were questions around their inventory levels being higher this year than last year. While other retailers have been trimming their grill inventory levels, Tractor Supply is seeing the growth and is increasing stock to support it.
The first I would call out, as Kurt (Barton, CFO) did, which was easier — the kind of net — the lapping of comparison last year. We were down, I think, negative 1.7% on inventory last year. The second is our investment in big ticket. Obviously, those are higher average unit retail items. So that’s going to disproportionately drive our inventory dollars up. But we saw the strength in riders, in UTVs, in things like grills and other big ticket categories, we invested into that.
Hal Lawton, CEO of Tractor Supply
What’s interesting about Tractor Supply saying that they’re seeing growth and investing in big ticket items, like grills, is it’s the opposite of what we’ve been hearing. Both on the manufacturer and retailer side, the common story is that the consumer is cutting back on big ticket spending.
Tractor Supply’s footprint is more rural than other big box chains. They also move significantly less grills than Home Depot, so growth is relative. It could present opportunity for other grill brands on the retail side though that aren’t already tapped into rural areas.