Tractor Supply's Arizona Distribution Center to Fuel Growth

Moving ahead on its expansion path, Tractor Supply Company (TSCO) declared plans to construct a distribution center in Casa Grande, AZ. The facility, with an expected size of 650,000 square feet, is anticipated to begin operations in the fourth quarter of 2015.

The construction of this facility is a major step taken by the company toward its expansion in the western region of the country. This is because Arizona is located in southwestern U.S. and hence, is close to the company’s western stores. Consequently, this addition is most likely to benefit Tractor Supply by curtailing commuting costs and facilitating seamless and faster product deliveries.

Casa Grande already has many industrial, commercial and agricultural businesses operating in the city which has an outstanding workforce. The addition of Tractor Supply’s distribution center to this community is expected to enhance its sustained efforts toward building an organized infrastructure to support long-term growth. Further, this is expected to help create a pleasant business environment.

Also, this distribution center has the capacity to generate over 250 local jobs, which will significantly benefit the community, strengthening its employment position. Further, this facility is expected to be capable enough to serve nearly 250 stores in the southwestern chunk of the country.

Executives of the company and local government officials also celebrated the groundbreaking event of this distribution center recently, at its site located in the Central Arizona Commerce Park.

We conclude that this Zacks Rank #2 (Buy) company continues to progress well with its growth initiatives, which include expanding its store base and incorporating technological advancements for better client service. The company leverages an extensive network of stores to penetrate into target markets, which in turn, enable it to generate healthy sales and gain market share.

Tractor Supply is the largest operator of farm and ranch stores in the U.S. with a unique market niche of serving the lifestyle needs of recreational farmers and ranchers. The company revamped itself by concentrating on square footage growth and maximizing productivity from its existing store base. It currently operates over 1,360 stores across 49 states.

Other well-ranked stocks looking attractive at current levels include Big 5 Sporting Goods Corp. (BGFV), with a Zacks Rank #1 (Strong Buy), Bed Bath & Beyond Inc. (BBBY) and Office Depot, Inc. (ODP), both carrying a Zacks Rank #2.

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