Tractor Supply Finalizes Purchase of Pet Pharmacy Allivet

Rural lifestyle retailer Tractor Supply Company has finalized its acquisition of online pet pharmacy Allivet.

“We’re very excited to officially welcome the Allivet team to the Tractor Supply family,” Tractor Supply CEO Hal Lawton said in a news release Monday (Dec. 30). “This acquisition complements and expands our existing ‘Life Out Here’ product and services line-up. We look forward to providing our 37 million Neighbor’s Club members with a value-oriented pet and animal prescription service and introducing Tractor Supply to Allivet’s customers.”

According to the release, the acquisition expands the company’s total addressable market by $15 billion to $225 billion. Founded in 1992, Allivet is licensed in all 50 states, with three distribution centers letting it offer next-day delivery in most of the U.S.

The company provides prescription and over-the-counter pet medications, as well as a “PetRx-as-a-Service” platform whose partners include Tractor Supply as well as American Kennel Club (AKC), and Fetch Pet Insurance.

Tractor Supply’s existing pet-related offerings include its 205 stores under the Petsense brand, the company’s small-box pet specialty supply retailer.

Terms of the purchase were not disclosed. Tractor Supply first announced its intention to acquire Allivet in October.

The deal comes as consumers continue to spend more on their pets. And even consumers who cut back and trade down have told PYMNTS they don’t apply those practices to their four-legged family members.

“People are still bringing pets into their family and at increased rates. And they are spending more,” Jonathan Wainberg, general manager of Synchrony’s Pet business, said in an interview with PYMNTS at the start of this year.

Backing up this assertion is data showing that the global market for pet care — which reached $235.3 billion in 2022 — is expected to jump to $368.8 billion by 2030, showing why companies like Synchrony and Tractor Supply are looking to expand their market share in the industry.

More recently, PYMNTS explored how pet-focused companies like Chewy and Petco were seeing revenue growth based on the strength of their health offerings. For example, Petco’s most recent earnings showed service revenues up 9%, driven by strong performance across veterinary hospitals and mobile clinics.

“In services, our bed offering remains a key growth driver and differentiator for Petco,” CEO Joel Anderson said during an earnings call.

“As our hospital fleet continues to mature, our services team is focused on accelerating utilization to support structural margin improvement of our vet hospitals and ensure we can meet the growing demand for our customers in a timely manner.”