Tractor Supply Co. announced alongside its Q2 2026 earnings on July 23 that it will close approximately 75 underperforming Petsense by Tractor Supply stores, roughly a third of its 209-location Petsense footprint, and scale back new store openings for 2027 from a target of 100 new locations down to 85 to 90.
The company also cut its full-year sales growth forecast from 4 to 6 percent down to 2.5 to 3.5 percent and withdrew its long-term financial framework entirely.
The culprit is the pet category. Pet-related products account for roughly 20 percent of Tractor Supply's business, and that category has stalled as consumers get more selective with discretionary spending.
The Petsense stores, acquired when Tractor Supply bought the chain in 2016, were the soft underbelly. The closures represent a relatively small share of Tractor Supply's total footprint, which includes 2,463 namesake stores across 49 states that are performing reasonably well.
The timing is notable. Tractor Supply acquired veterinary services provider VIP Petcare in May 2026, a $9.5 billion deal that expanded the company's pet health footprint to approximately 2,700 retail locations.
It is now closing the weakest of its pet stores while doubling down on pet health services at its main stores. CEO Hal Lawton called it a move to "improve returns, simplify the business, and direct resources towards higher growth, higher return opportunities."