We present key insights from our conversation with Glenn Allison, VP Information Technology at Tractor Supply Company, from a webinar held on August 5, 2020. The webinar was hosted by Deborah Weinswig, CEO and Founder of Coresight Research.

Pivoting amid the Crisis Through Flexibility, Supporting the Workforce and Leveraging Technology

1. Flexibility: Meeting Consumers’ Needs in Challenging Times Allison explained that Tractor Supply operates a need-based business so must retain flexibility, even during the pandemic, to meet consumer demand. Amid the crisis, the company tapped multiple opportunities for growth, including BOPIS (buy online, pick up in store) services, increased demand for home-improvement goods and the continued transition toward an omnichannel retail model. Allison pointed to Tractor Supply’s rollout of its curbside-pickup option as evidence of the company’s ability to react quickly to changes in consumer behavior: Tractor Supply made curbside pickup available at all 1,800 of its locations within just three days. The company also partnered with Roadie, a Georgia, US-based delivery company, to provide same-day delivery on many items. In addition, Tractor Supply recently released its first mobile app to create a seamless experience for customers across all commerce channels. The company’s new initiatives have been successful so far: Tractor Supply’s sales were up 35% year over year in the second quarter, and it experienced triple digit e-commerce sales growth. [caption id="attachment_114387" align="aligncenter" width="700"] Deborah Weinswig and Glenn Allison
Source: Coresight Research [/caption]   2. Workforce: Supporting Talented Employees and Ensuring Health and Safety Allison emphasized that Tractor Supply’s 38,000 employees—many of which are frontline workers in the retailer’s 1,800 stores—have been vital to the success of the company during the crisis period. Tractor Supply has made efforts to ensure the health, safety and wellbeing of its employees amid the pandemic, such as by offering sick pay and access to PPE (personal protective equipment) and sanitation supplies. Allison added that the company is relying on contact tracing to stem potential outbreaks among the workforce, in order to keep stores safe and open. Tractor Supply recognizes the need for a highly skilled corporate team to oversee its increased reliance on analytics and continuing transition into the digital marketplace. Allison noted that the company recruits data engineers from MIT (Massachusetts Institute of Technology) and other top institutions to expedite its automation of back-end processes. He believes that having a strong internship program, where interns from top institutions are given meaningful tasks to work on, is key to workforce development. 3. Technology: Ironing Out Inefficiencies and Collecting Actionable Business Intelligence Data Tractor Supply has found technology to be a key driver of its success during the pandemic. Allison emphasized the importance of automating some of the processes that store associates spend their day doing manually. He stressed that he wants to maximize the amount of time that store employees spend interacting with customers, and that technology facilitates the task management that helps the company to achieve this goal. Tractor Supply collects advanced business intelligence data to spur business development and meet customer needs. Increased demand, particularly for home-improvement goods and lawn and garden products, has been a boon to the company’s sales but has also presented logistical challenges. According to Allison, the employment of advanced analytics has enabled the company to face these challenges head on and take advantage of greater sales opportunities. Tractor Supply collects its own data through its Neighbor’s Club loyalty program, has partnered with Microsoft Azure to leverage product and customer data to gain detailed enterprise insights, and keenly analyzes the macroeconomic environment. With these tools at its disposal, Allison believes that the company is well equipped to quickly adjust to changes in the retail landscape.

Allison’s Key Takeaways

• Utilizing a diverse array of business intelligence data enables retailers to understand changes in consumer behavior in real time and pivot quickly during shifts in the retail landscape.
• Through the launch of its mobile app, quick rollout of curbside pickup and partnership with Roadie to provide same-day delivery, Tractor Supply has successfully catered to changing consumer preferences during the pandemic and developed an omnichannel customer experience.
• Supporting frontline employees has been vital during the pandemic: Tractor Supply has relied on and supported its 38,000 employees by providing paid sick leave, utilizing a contact-tracing system to stem potential outbreaks before they happen and providing PPE in all stores.
• A strong workforce pipeline and development infrastructure is a necessary component of successful business development.
• In stores, technology is best used to automate time-intensive processes in order to maximize the amount of time that store associates spend interacting with customers.