Tractor Supply Company (TSCO) 2021年年度報告「NASDAQ」.pdf

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1、Annual Report 2021212019181712.710.68.47.97.3212019181716.923.12.75.12.721201918178.616.384.664.313.3021201918171,038518696497503Net Sales($in Billions)Net Income PerDiluted Share($)Comparable StoreSales Increase(%)Cash Returnedto Shareholders($in Millions)2021 Sales by Category Clothing&Footwear 8%

2、Agriculture 3%Livestock&Pet 47%Seasonal,Gift&Toy 21%Hardware,Tools&Truck 21%6073211710157710251092332141185818047926830344050482202114172442823142910731153322668996625229232427102969763602497204215Distribution Centers8Petsense Stores178Tractor Supply Stores2,003Store count as of December 25,2021Our

3、PerformanceWe are the largest rural lifestyle retailer in the United States,and each day we strive to provide our customers with legendary customer service,in-store and online.To Our Stakeholders,As I reflect on the past year and look ahead to our future.this is an exciting time for Tractor Supply.W

4、hile we have been in business since 1938,we are still very early on our journey to serving Life Out Here.We are committed to building on the momentum in our business and capturing the tremendous growth opportunities that we see ahead of us.As we operated through the early days of the pandemic in 202

5、0,we set our sights on ensuring that our business would emerge stronger than before.Today,our business has never been stronger.As a purpose-driven organization,we live our Mission:“work hard,have fun and make money by providing legendary service and great products at everyday low prices.”Our Mission

6、 is supported by a well-developed set of values.Our Mission and Values have guided us over the course of the pandemic,and our team has worked diligently with grit and determination to overcome todays challenging operating environment.Hal LawtonPresident and Chief Executive OfficerTractor Supply Comp

7、any|3 Summary of Fiscal 2021 ResultsDespite another year of uncertainty,we remained agile and steadfast in our commitment to be there for each other and our customers as an essential,needs-based retailer for the Out Here lifestyle.Some of the highlights that made 2021 another great year for our comp

8、any include the following:For the year,we achieved record sales and operating performance,on top of our record performance in 2020.We had strong net sales gains of 19.9%with comparable store sales up 16.9%,when compared to fiscal 2020.We reached over$12.7 billion in net sales for the year,a signific

9、ant milestone for our company,with the addition of over$2 billion in sales.We also reached record sales per square foot,earnings per share and cash flow from operations.We returned$1.04 billion in capital to shareholders through the combination of share repurchases and a growing dividend.Over the la

10、st two years,our omni-channel sales have increased 80%and complement our store footprint.In 2021,our digital business reached nearly$1 billion in sales through increasing visitors and conversion,bringing our mobile app downloads to more than 2 million.In 2021,more customers shopped with us than ever

11、 before,spent more money per trip and increased their trips to Tractor Supply.We continue to gain market share.Our Neighbors Club loyalty program was relaunched from an affinity program to a tiered rewards program.To date,we have enrolled nearly 24 million members in our Neighbors Club program.We ma

12、intain robust retention rates and engagement,especially with our highest value tier members.We are committed to making Tractor Supply a household name.Our research indicates that Tractor Supply has become more top of mind with consumers as our unaided brand awareness increased 21 points over the las

13、t two years.We invested in our strategic initiatives and finished the year with over 300 Fusion remodels and over 160 Side Lot additions completed.This investment in our stores is transforming our customers shopping experience.We opened 80 new Tractor Supply stores,including celebrating our 2,000th

14、store in White House,Tennessee.We are expanding our distribution center network to support our growth with the build-out of three new locations over the next five years.The first of these three locations will be in Navarre,Ohio,and is expected to be operational by the fall of 2022 and is being built

15、 to LEED(Leadership in Energy and Environmental Design)Gold Certification standards to be energy efficient and reduce our contribution to climate change.We continued to invest in our Team Members,increasing starting wage rates and merit increases,and expanding benefits to be more competitive and inc

16、lusive.Our longstanding commitment to ESG was reinforced with new goals to further reduce our carbon emissions and continue progress on Diversity,Equity and Inclusion.By 2025,we plan to reduce our absolute greenhouse gas emissions by 20%from what they were in 2020.By 2030,we plan to reduce those emi

17、ssions by 50%.By 2040,we are committed to achieve net zero emissions across all our operations.To further our DE&I commitment,we announced five-year goals to support and advance underrepresented groups across our workforce,vendors,suppliers,and communities.We also gave back to the communities we cal

18、l home.In 2021,we donated over$14 million to community organizations through direct giving,sponsorships,fundraisers and more.This includes incremental funding to support the Tractor Supply Company Foundation to help support vibrant rural communities.Our resilient and differentiated business model ha

19、s allowed us to adapt to the challenges of the pandemic and the ripple effects of other impacts like the tight labor market,unprecedented inflation and supply chain challenges impacting the industry,while capitalizing on the structural trends benefiting our business.Whether it is rural revitalizatio

20、n,trip consolidation,a move towards a more self-reliant lifestyle,adoption of homesteading or pet ownership,we believe these are structural and durable trends that will continue to benefit our business for years to come.4|Tractor Supply CompanyLife Out Here StrategyWe have strong momentum in our bus

21、iness.Our multiyear Life Out Here Strategy,introduced in 2020,is gaining traction as we are broadening our customer reach and increasing our market share.We operate in a vibrant and growing total addressable market that we now estimate is$180 billion,an increase of$70 billion from 2019,through a com

22、bination of market growth and new categories that are relevant to the Out Here lifestyle.1.Deliver Legendary Customer Service Expand and deepen our customer base by providing personal,localized and memorable customer engagements.2.Advance our ONETractor Capabilities Evolve our anytime,anywhere,any w

23、ay customer experiences by digitizing our business processes and furthering our omni-channel capabilities.3.Operate the Tractor Way Drive operational excellence and productivity through continuous improvement,increasing space utilization and implementing advanced supply chain capabilities.4.Go the C

24、ountry Mile for our Team Connect,empower and grow our Team Members to enhance their lives and the communities they live in,enabling them to provide legendary service to our customers.5.Generate Healthy Shareholder Return Allocate resources in a disciplined and efficient manner to drive profitable gr

25、owth and build shareholder value.Tractor Supply Company|5 The combination of the strong cash generation of Tractor Supplys business and our Boards confidence in our outlook positions us to return capital to shareholders.In January 2022,our Board of Directors approved a 77%increase in our quarterly d

26、ividend,marking our thirteenth consecutive dividend increase and an expanded share repurchase authorization of$2 billion.We believe we are well positioned to continue to drive profitable growth and enhance value for the long term.In closing,my gratitude goes out to all our stakeholders our customers

27、,our vendors,supply chain partners,the communities we call home,our shareholders and most of all to the more than 46,000 Team Members that make Tractor Supply the special place it is.We believe our greatest competitive advantage is our team.Thank you to the team as they live our Mission and Values e

28、very day.Thank you for your support and the trust you have placed in Tractor Supply.Sincerely,Hal Lawton President and CEOOUR MISSION To work hard,have fun,and make money by providing legendary service and great products at everyday low prices.OUR CUSTOMERWe are committed to being an integral part o

29、f our customers lives by being the most dependable Supplier of Out Here Lifestyle solutions.OUR TEAMWe value a safe,respectful,and inclusive work environment.We are focused on investing in the Team Member experience and building a diverse and high-performing Team with the critical skills and capabil

30、ities to support our growth.OUR COMMUNITYWe support the communities in which we serve the Out Here Lifestyle through partnerships and sustainable practices.OUR STAKEHOLDERSWe are a growth company that delivers a strong total return for our shareholders,as well as for our vendors and partners.OUR VAL

31、UES ETHICSDo the“right thing”and always encourage others to do the right,honest and ethical things.RESPECTTreat others with the same consideration we expect for ourselves.Be a champion for diversity&inclusion.BALANCEManage your time for both business and personal success.WINNING ATTITUDEHave a“can-d

32、o”attitude.Be positive,upbeat,and focused.We are winners!COMMUNICATIONShare information,ask questions,listen effectively,speak thoughtfully,and let ideas live.DEVELOPMENTLearn from each other.Teach,coach,and listen.Create an environment where everyone can be a“star.”TEAMWORKValue different viewpoint

33、s.Execute the agreed-upon plans.Together,everyone achieves more!CHANGEAccept it.Embrace it.Initiate it.Do everything better,faster,and cheaper.INITIATIVESeek opportunities.Use good judgement.Take intelligent risks.Drive speed to market.Champion ideas.ACCOUNTABILITYKnow your responsibilities.Live up

34、to your commitments.6|Tractor Supply Company2021 Form 10-KTHIS PAGE INTENTIONALLY LEFT BLANKUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 25,2

35、021 orTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from_to_.Commission file number 000-23314TRACTOR SUPPLY COMPANY(Exact name of registrant as specified in its charter)Delaware13-3139732(State or Other Jurisdiction ofIncorporation o

36、r Organization)(I.R.S.Employer Identification No.)5401 Virginia Way,Brentwood,Tennessee37027(Address of Principal Executive Offices)(Zip Code)Registrants Telephone Number,Including Area Code:(615)440-4000Securities Registered Pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Na

37、me of each exchange on which registeredCommon Stock,$.008 par valueTSCONASDAQ Global Select MarketSecurities Registered Pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes No Indicate by che

38、ck mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes No Indicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or

39、 for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to R

40、ule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller

41、reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company”and“emerging growth company”in Rule 12b-2 of the Exchange Act:Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging

42、growth companyIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the reg

43、istrant has filed a report on and attestation to its managements assessment of effectiveness of its internal control over financial reporting under section 404(b)of Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or issued its audit report.Indicate by check

44、mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act.)Yes No The aggregate market value of the Common Stock held by non-affiliates of the registrant,based on the closing price of the Common Stock on The NASDAQ Global Select Market on June 26,2021,the last business day o

45、f the registrants most recently completed second fiscal quarter,was approximately$17.2 billion.For purposes of this response,the registrant has assumed that its directors,executive officers,and beneficial owners of 5%or more of its Common Stock are affiliates of the registrant.Indicate the number of

46、 shares outstanding of each of the registrants classes of common stock as of the latest practicable date.Class Outstanding at January 22,2022Common Stock,$.008 par value112,772,349Documents Incorporated by Reference:Portions of the Registrants definitive Proxy Statement for its 2022 Annual Meeting o

47、f Stockholders are incorporated by reference into Part III hereof.Item No.Form 10-K Report PageForward-Looking StatementsiiPART I11.Business11A.Risk Factors121B.Unresolved Staff Comments242.Properties253.Legal Proceedings264.Mine Safety Disclosures26PART II275.Market for Registrants Common Equity,Re

48、lated Stockholder Matters,and Issuer Purchases of Equity Securities276.Reserved297.Managements Discussion and Analysis of Financial Condition and Results of Operations307A.Quantitative and Qualitative Disclosures About Market Risk428.Financial Statements and Supplementary Data449.Changes in and Disa

49、greements with Accountants on Accounting and Financial Disclosure759A.Controls and Procedures759B.Other Information75PART III7510.Directors,Executive Officers,and Corporate Governance7511.Executive Compensation7512.Security Ownership of Certain Beneficial Owners and Management and Related Stockholde

50、r Matters7513.Certain Relationships and Related Transactions,and Director Independence7614.Principal Accountant Fees and Services76PART IV7615.Exhibits and Financial Statement Schedules7616.Form 10-K Summary76iFORWARD-LOOKING STATEMENTS OR INFORMATIONThis Form 10-K and statements included or incorpo

51、rated by reference in this Form 10-K include certain forward-looking statements,which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995(the“Act”).All statements,other than statements of historical facts,which address activities,events,or developm

52、ents that we expect or anticipate will or may occur in the future,including such things as future capital expenditures(including their amount and nature),business strategy,expansion,anticipated future performance and growth of our business operations and other such matters are forward-looking statem

53、ents.To take advantage of the safe harbor provided by the Act,we are identifying certain factors that could cause actual results to differ materially from those expressed in any forward-looking statements.These factors include,without limitation,national,regional,and local economic conditions affect

54、ing consumer spending,including the effects of the COVID-19 pandemic,the efficacy and distribution of COVID-19 vaccines,the timing and acceptance of new products,the timing and mix of goods sold,purchase price volatility(including inflationary and deflationary pressures),transportation costs,constra

55、ints in the supply chain affecting timing and availability of merchandise inventory,the ability to increase sales at existing stores or on our e-commerce platforms,the ability to manage growth and identify suitable locations,the ability to complete acquisitions on expected terms,failure of an acquis

56、ition to produce anticipated results,the ability to successfully manage expenses(including increased expenses as a result of operating during the COVID-19 pandemic)and to execute our key gross margin enhancing initiatives,the availability of favorable credit sources,capital market conditions in gene

57、ral,the ability to open new stores in the time,manner and number currently contemplated,particularly in light of the COVID-19 pandemic,the ability to open distribution centers in the anticipated timeframe and within budget,the impact of new stores on our business,competition,including that from onli

58、ne competitors,weather conditions,the seasonal nature of our business,effective merchandising initiatives and marketing emphasis,the ability to retain vendors,reliance on foreign suppliers,the ability to attract,train,and retain qualified employees,increasing labor and benefit costs,our ability to m

59、eet our sustainability,stewardship,carbon emission,and diversity,equity,and inclusion(DE&I)related environmental,social,and governance(ESG)projections,goals,and commitments,product liability and other claims,changes in federal,state,or local regulations,the potential effects on our business of respo

60、nses of government and public health authorities to the COVID-19 pandemic,the“shelter in place”and similar federal,state,and local regulations and protocols could have on our business,including our supply chain and employees,the effectiveness of the Companys responses to COVID-19,including our effor

61、ts to make a vaccine available to our employees,and customer response with respect to those actions,the refusal by our employees and the public generally to be vaccinated against COVID-19,the imposition of tariffs on imported products or the disallowance of tax deductions on imported products,potent

62、ial judgments,fines,legal fees,and other costs,breach of information systems or theft of employee or customer data,ongoing and potential future legal or regulatory proceedings,management of our information systems,failure to develop and implement new technologies,the failure of customer-facing techn

63、ology systems,business disruption including from the implementation of supply chain technologies,effective tax rate changes and results of examination by taxing authorities,the ability to maintain an effective system of internal control over financial reporting,and changes in accounting standards,as

64、sumptions,and estimates,and those described in Item 1A.“Risk Factors.”Forward-looking statements are based on currently available information and are based on our current expectations and projections about future events.We undertake no obligation to release publicly any revisions to these forward-lo

65、oking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events,except as required by law.IndexPART IItem 1.BusinessOverviewTractor Supply Company(the“Company”or Tractor Supply or“we”or“our”or“us”)is the largest rural lifestyle retailer

66、in the United States(“U.S.”).The Company is focused on supplying the needs of recreational farmers,ranchers,and all those who enjoy living the rural lifestyle(which we refer to as the“Out Here”lifestyle).We operate retail stores under the names Tractor Supply Company,Petsense,and Dels Feed&Farm Supp

67、ly.Our stores are located primarily in towns outlying major metropolitan markets and in rural communities.We also offer an expanded assortment of products through the Tractor Supply mobile application and online at TractorS and P.The Company has one reportable industry segment which is the retail sa

68、le of products that support the rural lifestyle.At December 25,2021,we operated 2,181 retail stores in 49 states(2,003 Tractor Supply and Dels retail stores and 178 Petsense retail stores).Our Tractor Supply stores typically range in size from 15,000 to 20,000 square feet of inside selling space,alo

69、ng with additional outside selling space,and our Petsense stores have approximately 5,500 square feet of inside selling space.For Tractor Supply retail locations,we use a standard design for most new built-to-suit locations that includes approximately 15,500 square feet of inside selling space.Our o

70、nline selling websites and our mobile application offer an extended assortment of products beyond those offered in-store and drive traffic into our stores through our buy online and pickup in-store and ship to store programs.Our retail store locations and digital capabilities provide the convenience

71、 to allow our customers to engage with us anytime,anywhere and in any way they choose.On February 17,2021,the Company announced that it entered into an agreement to acquire all of the outstanding equity interests of Orscheln Farm and Home,LLC,a farm and ranch retailer with 167 retail stores in 11 st

72、ates,in an all-cash transaction for approximately$320 million.The Company intends to fund the acquisition through cash-on-hand.The acquisition is conditioned on the receipt of regulatory clearance and the satisfactory completion of customary closing conditions within a specified timeframe.Business S

73、trategy for Tractor Supply Company We believe our sales and earnings growth is the result of executing our multi-year strategy,which includes the following key components:Market NicheWe have identified a specialized market niche:supplying the lifestyle needs of recreational farmers,ranchers,and all

74、those who enjoy living the rural lifestyle.By focusing our product assortment on these core customers,we believe we are differentiated from general merchandise,home center,and other specialty retailers.We cater to the rural lifestyle and often serve a market by being a trip consolidator for many bas

75、ic maintenance needs for farm,ranch,and rural customers through convenient shopping options both in-store and online.CustomersOur target customers are home,land,pet,and livestock owners who generally have above average income and below average cost of living.We seek to serve a customer base that pri

76、marily lives in towns outlying major metropolitan markets and in rural communities.This customer base includes recreational farmers,ranchers,and all those who enjoy living the rural lifestyle.We have seen a continuation of shifting consumer behavior trends due to the COVID-19 pandemic as customers f

77、ocused on the care of their homes,land,and animals,which resulted in a growing demand in everyday merchandise,including consumable,usable,and edible(C.U.E.)products and seasonal categories.Customer ServiceWe are committed to providing our customers reliable product availability and a convenient,cust

78、omer-centric experience across shopping channels.In our stores,we believe the ability of our motivated,well-trained team members to provide friendly,responsive and seasoned advice helps our customers find the right products to satisfy their everyday needs,as well as the specialty items needed to com

79、plete their rural lifestyle projects.We also engage with our customers through our e-commerce websites and mobile application,which provide the opportunity to allow customers to shop anytime,anywhere,and in any way Index1they choose,while delivering enhanced product information,research,and decision

80、 tools that support product selection and informational needs in specific subject areas.Additionally,we maintain a Customer Solutions Center at our Store Support Center located in Brentwood,Tennessee,to support our in-store and online customers,as well as our store team members.We believe this commi

81、tment to customer service promotes strong customer loyalty through personalized experiences and provides convenience that our customers expect,which drives repeat shopping experiences.We use a third-party provider to survey and measure our level of customer service.This process allows customers to p

82、rovide feedback on their shopping experience.Based on the third-party providers data,we believe our customer satisfaction scores are among the best-in-class.We carefully evaluate the feedback we receive from our customers and implement improvements at both the Company and the individual store level

83、based on that feedback.Store EnvironmentOur stores are designed and managed to make shopping an enjoyable experience and to maximize sales and operating efficiencies.Stores are strategically arranged to provide an open environment for optimal product placement and visual display.In addition,these la

84、youts allow for departmental space to be easily reallocated and visual displays to be changed for seasonal products and promotions.Display and product placement information is routinely sent to stores to ensure quality and uniformity among the stores,and our Field Activity Support Teams(FAST)are ded

85、icated to support the stores in creating an enhanced in-store experience for our customers through best-in-class merchandising execution.Our store layouts and visual displays are designed to provide our customers a feeling of familiarity and convenience to enhance the shopping experience.Informative

86、 signs are located in key product categories to conveniently assist customers with purchasing decisions and merchandise location.These signs provide customers with a comparison of product qualities,clear pricing,useful information regarding product benefits,and suggestions for appropriate accessorie

87、s.Also,our store team members wear highly visible red vests or aprons with name tags,and our customer service and checkout counters are conveniently located near the front of the store.Our stores have been equipped with tools such as team member communication devices,wireless internet,and mobile poi

88、nt-of-sale devices that enable our team members to provide an enhanced shopping experience to our customers.In addition,our buy online and pickup in-store and ship to store programs,including curbside pickup,provides convenient access for customers to pick up merchandise from our store locations.We

89、are in the midst of a multi-year project that began in 2020 to remodel our existing store base,bringing programs to life with new fixtures,layouts and products that truly enhance the customer shopping experience.The site level space is analyzed category by category and reallocated as needed to align

90、 with current merchandising strategies and to drive space productivity.Another space productivity initiative is to transform our side lot with an expanded product offering and an enhanced shopping experience.With this investment,the side lots space is leveraged to offer a wider product offering in t

91、he lawn and garden categories and our new categories with the garden center,and offer greater convenience through the expansion of our buy online and pickup in-store and ship to store capabilities for drive-thru pickup.Merchandising and PurchasingWe offer an extensive assortment of products for all

92、those seeking to enjoy the“Out Here”lifestyle.Our product assortment is tailored to meet the needs of our customers in various geographic markets.Our full line of product offerings includes a broad selection of high quality,reputable brand name and exclusive brand products with approximately 16,000

93、to 22,000 products per store as well as over 170,000 products online.No single product accounted for more than 10%of our sales during fiscal 2021.Our comprehensive selection of merchandise is comprised of the following major product categories:Equine,livestock,pet,and small animal products,including

94、 items necessary for their health,care,growth,and containment(i.e.fencing);Hardware,truck,towing,and tool products;Seasonal products,including heating,lawn and garden items,power equipment,gifts,and toys;Work/recreational clothing and footwear;andMaintenance products for agricultural and rural use.I

95、ndex2The following table indicates the percentage of net sales represented by each of our major product categories during fiscal 2021,2020,and 2019:Percent of Net SalesFiscal YearProduct Category:202120202019Livestock and Pet 47%47%47%Hardware,Tools and Truck 21 21 21 Seasonal,Gift and Toy Products

96、21 21 20 Clothing and Footwear 8 7 8 Agriculture 3 4 4 Total 100%100%100%Our buying team continuously reviews and updates our product assortment as necessary to respond to customer needs and to offer new,relevant products.We are focused on providing key products that our customers use on a regular b

97、asis for their lifestyle and maintenance needs with emphasis on consumable,usable,and edible(C.U.E.)products.Examples of C.U.E.product categories include,but are not limited to,livestock feed and bedding,pet food,bird seed,lubricants,propane,and various seasonal products,such as fertilizer,weed cont

98、rol,mulch,pest control,and twine.Our products are sourced through both domestic and international vendors,each of whom are expected to adhere to a code of conduct that guides our relationship.Our business is not dependent upon any single vendor or particular group of vendors.We purchase our products

99、 from a group of approximately 975 vendors,with no one vendor representing more than 10%of our purchases during fiscal 2021.Approximately 375 core vendors accounted for 90%of our merchandise purchases during fiscal 2021.Although the COVID-19 pandemic has resulted in the fluctuation of customer deman

100、ds for certain products as well as global supply chain disruptions and delays,we have not experienced any significant difficulty in obtaining satisfactory alternative sources of supply for our products to meet customer demands.We believe that adequate sources of supply exist,but they may cost more o

101、r require us to incur higher transportation costs.Our buying teams focus on merchandise procurement,vendor line reviews,and testing of new products and programs.We also employ a dedicated inventory management team that focuses exclusively on forecasting and inventory replenishment,a committed mercha

102、ndise planning team that concentrates on assortment planning,and a specialized pricing team that seeks to optimize market-specific pricing for our products.Through the combined efforts of these teams,we continue to focus on improving our overall inventory productivity and in-stock inventory position

103、.Intellectual Property Our subsidiary,Tractor Supply Co.of Texas,LP(“TSCT”),owns registrations with the U.S.Patent and Trademark Office(“USPTO”)for various service marks including TSC,Tractor Supply Co.,TSC Tractor Supply Co.,and the trapezium design for retail services.We consider these service mar

104、ks,and the accompanying goodwill and name recognition,to be valuable assets of our business.TSCT also owns several other service marks for retail services,some of which have been registered with the USPTO and some of which are the subject of applications for registration pending before the USPTO.In

105、addition to selling products that bear nationally-known manufacturer brands,we also sell products manufactured for us under a number of exclusive brands that we consider to be important to our business.These exclusive brands are manufactured for us by a number of vendors and provide an alternative t

106、o the national brands,which helps provide value for our customers and positions us as a destination retailer.Index3Our exclusive brands represented approximately 29%of our total sales in fiscal 2021 and 2020 and 31%of our total sales in fiscal 2019.Our exclusive brands include:4health(pet foods and

107、supplies)Producers Pride(livestock and horse feed and supplies)American Farmworks(livestock,farm and ranchRed Shed(gifts,collectibles,and outdoor furniture)equipment)Bit&Bridle(apparel and footwear)Redstone(heating products)Blue Mountain(apparel)Retriever(pet foods and supplies)C.E.Schmidt(apparel a

108、nd footwear)Ridgecut(apparel)Countyline(livestock,farm and ranch equipment)Royal Wing(bird feed and supplies)Dumor(livestock and horse feed and supplies)Strive(pet food)Groundwork(lawn and garden supplies)Traveller(truck and automotive products)Huskee(outdoor power equipment)Treeline(hunting gear an

109、d accessories)JobSmart(tools)TSC Tractor Supply Co(trailers,truck tool boxes,and animalbedding)Paws&Claws(pet foods and supplies)Untamed(pet foods)The exclusive brands identified above have been registered as trademarks with the USPTO for certain products and some are the subject of additional appli

110、cations for registration pending before the USPTO for other products.Our trademark and service mark registrations have various expiration dates;however,provided that we continue to use the marks and file appropriate maintenance and renewal documentation with the USPTO in a timely manner,the registra

111、tions are potentially perpetual in duration.Our patents(both United States and foreign)have expiration dates ranging from March 2024 to December 2045 and protect various elements,designs or functions of farm and ranch equipment,as well as light systems for trucks and other vehicles.We believe our in

112、tellectual property,which includes the trademarks and service marks identified above,together with certain trade names,domain names,patents,and copyrights,has significant value and is an important component of our merchandising and marketing strategies.DistributionWe currently operate a distribution

113、 facility network for supplying stores with merchandise and delivering product ordered through our websites and mobile application.In fiscal 2021,our Tractor Supply stores received approximately 76%of merchandise through this network while the remaining merchandise shipped directly from our vendors

114、to our stores or customers.We believe this flow facilitates the prompt and efficient distribution of merchandise that allows us to be a dependable supplier to our customers for their Out Here lifestyle solutions by enhancing in-stock inventory positions,while minimizing freight expense and improving

115、 the inventory turn rate.Our distribution facilities,located in Arizona,Georgia,Indiana,Kentucky,Maryland,Nebraska,New York,Texas,and Washington represent a total distribution center capacity of 6.1 million square feet.We also use third-party operated import centers,mixing centers and pop-up distrib

116、ution facilities which provide additional distribution capacity.The Company is building a new distribution center in Navarre,Ohio,which is expected to be approximately 900,000 square feet and is currently anticipated to be completed in the fall of fiscal 2022.In addition,on January 26,2022,the Compa

117、ny announced plans to build a new distribution center in Maumelle,Arkansas.This new distribution center is expected to be approximately 900,000 square feet.Construction is planned to begin in the middle of 2022 and is currently anticipated to be completed in late 2023.We select the locations of our

118、distribution facilities in an effort to minimize logistics costs and optimize the distance from distribution facilities to our stores.Our distribution centers utilize warehouse and labor management tools that support the planning,control,and processing of inventory.We manage our inbound and outbound

119、 transportation activity in-house through the use of a transportation management system.We utilize multiple common carriers for store and direct to customer Index4deliveries.We manage our transportation costs through carrier negotiations,monitoring of transportation routes,and scheduling of deliveri

120、es.MarketingWe utilize an“everyday low price”philosophy to consistently offer our products at competitive prices complemented by strategically planned promotions throughout the year.To drive store traffic and position ourselves as a destination retailer,we promote a broad selection of merchandise th

121、rough various digital and social media initiatives,television,newspaper circulars,and customer-targeted direct e-mail and direct mail,as well as limited use of radio and other media channels.In addition,our Neighbors Club loyalty program enhances our ability to engage with our customers,recognize an

122、d reward our best customers,drive desired behaviors,and create brand advocacy.Vendors frequently support these specific programs by offering temporary cost reductions,additional funding,and honoring coupons.Our vendors also provide assistance with product presentation and fixture design,brochures,su

123、pport for in-store events,point-of-purchase materials for customer education,and product knowledge for our team members.Omni-ChannelEnsuring that our customers can engage with us in the most convenient manner for them whether in our stores,on our website,on our mobile application,or via our Customer

124、 Solutions Center,is a high priority for us.Our goal is to be available anytime,anywhere,and in any way our customers choose to engage with our brand.We provide our customers the opportunity to shop in a manner that fits their lifestyle and is most convenient for them.Our focus is on delivering a co

125、mprehensive,seamless omni-channel shopping experience offering the conveniences our customers want and expect.We offer buy online,pickup in-store,and curbside pickup,which provides convenient access for customers to pick up merchandise from our store locations.Additionally,our online experience offe

126、rs an expansive product assortment including a direct to consumer assortment.This allows us to extend our aisles beyond our store locations and provides convenient and useful content that is relevant to our customers lifestyle.We provide our customers the ability to have products shipped directly to

127、 our retail store locations or to their homes or offices.For select products,we offer same day delivery.We use our distribution facility network as well as our stores to support our e-commerce activities.Our digital capabilities have further enhanced our in-store shopping experience,allowing us to e

128、ngage with our customers more effectively,and expanded our target markets outside of our current retail store locations.Continuous ImprovementWe are committed to a continuous improvement program to drive change throughout our organization.Using data analytics and team member engagement,we examine bu

129、siness processes and identify opportunities to reduce costs,drive innovation,and improve effectiveness.We establish goals for productivity and cost improvement.We have implemented numerous continuous improvement projects,with team members from multiple areas of our business,to evaluate key operation

130、s and implement process change.Team members are empowered and expected to challenge current paradigms and improve processes.Management encourages the participation of all team members in the decision-making process,regularly solicits input and suggestions from our team members,and incorporates sugge

131、stions into our improvement activities.Management Information and Control SystemsWe have invested resources in management information and control systems to provide legendary customer service and to deliver the right products in the right place at the right time.This investment includes use of digit

132、al technologies that support the Out Here lifestyle and integrate the customer experience in-store,online,and through our Customer Solutions Center,which offers customers the ability to shop anytime,anywhere,and in any way they choose.Our key platforms include:Point-of-sale system;In-store mobility;

133、E-commerce platform;Consumer mobile app;Replenishment and allocation systems;Merchandising presentation and inventory management tools;Warehouse and transportation management systems;Labor management tools for stores and supply chain;Price optimization system;Vendor purchase order control system;Ind

134、ex5Business intelligence and analytics tools;and Customer loyalty and campaign management system.These systems are integrated through an enterprise resource planning(“ERP”)system.This ERP system tracks merchandise from initial order through ultimate sale and interfaces with our financial systems.We

135、continue to invest in technology to support store,online,and distribution facility expansion and our long-term strategic growth initiatives focused heavily on improving the customer experience across all channels.We also continue to evaluate and improve the functionality of our systems to maximize t

136、heir effectiveness.Such efforts include ongoing hardware and software evaluations,refreshes,and upgrades to support optimal software configurations,and application performance.We plan to continue to invest in information technology and implement efficiency-driving system enhancements such as in-stor

137、e mobility,labor management tools,and back-office support systems.We will continue to evaluate the use of technologies to improve productivity such as artificial intelligence,automation software,quantum computing,and other technologies.We also maintain and continue to strengthen the security of our

138、information systems to help protect and prevent unauthorized access to personal information of our customers,employees,vendors,and other confidential Company data.We are endeavoring to adhere to quickly evolving industry privacy laws and standards.Critical areas of focus include cloud,end point prot

139、ection and privacy.Collectively,these efforts are directed toward improving business processes,maintaining secure,efficient,and stable systems,and enabling the continued growth and success of our business.PetsensePetsense is a small-box pet specialty supply retailer focused on meeting the needs of p

140、et owners,primarily in small and mid-sized communities,and offering a variety of pet products and services.At December 25,2021,we operated a total of 178 Petsense stores in 23 states,with approximately 500 full-time and 1,000 part-time team members,and an e-commerce website(P).The Petsense name is r

141、egistered with the USPTO.Human CapitalWe believe that our team members are the foundation of our business and that their hard work,passion,commitment,and experience drive our success.As a result of our commitment to our team members,in both 2021 and 2020,we were recognized by the Great Place to Work

142、 Institute as a Great Place to Work-Certified company and were included in Forbes 2021 Americas Best Employers for New Graduates list for the second year in a row.Below are further descriptions of our Company and our focus on the development and support of our team members:Management and Team Member

143、sAs of December 25,2021,we employed approximately 22,000 full-time and 24,000 part-time Tractor Supply team members.We typically employ additional part-time team members throughout the year during high sales volume periods.We are not party to any collective bargaining agreements.Our store operations

144、 are divided between east and west divisions,and each division is overseen by a senior vice president.The divisions are organized into regions,each of which is led by a regional vice president.The region is further organized into districts,each of which is led by a district manager.We have two inter

145、nal advisory boards,one comprised of store managers and the other comprised of district managers.These groups bring a grassroots perspective to operational initiatives and generate chain-wide endorsement of proposed best-practice solutions.Eligible team members can participate in one of our various

146、bonus incentive programs,which provide the opportunity to receive additional compensation based upon individual,team,and/or Company performance.In addition to bonus incentive programs,we provide our eligible team members the opportunity to participate in an employee stock purchase plan and a 401(k)r

147、etirement savings plan and health insurance for which we share a significant portion of the cost of premiums.We additionally provide our eligible team members with paid time off and a six-week parental leave policy for new parents.Our team members also receive a discount on merchandise purchased fro

148、m the Company.We continue to make wage investments to offer our team members competitive compensation.On an annualized basis in 2021,we invested an additional$40 million in hourly store team members as a result of our increases in the minimum wage paid to team members.We encourage a promote-from-wit

149、hin environment when internal resources permit.We also provide internal leadership development programs designed to prepare our high-potential team members for greater responsibility.Our current team of Index6district managers and store managers has an average tenure of approximately nine and six ye

150、ars,respectively.We believe internal promotions,coupled with the hiring of individuals with previous retail experience,provide the management structure necessary to support our long-term strategic growth initiatives.Store Personnel and TrainingWe seek to hire store team members who live and apprecia

151、te the Out Here lifestyle,including those with farming and ranching backgrounds,with particular emphasis on general maintenance,equine,and welding.We endeavor to staff our stores with courteous,highly motivated team members and devote considerable resources to training store team members,often in co

152、operation with our vendors.Our training programs include:A thorough on-boarding process to prepare new team members for their new role;Productive workplace environment training that is intended to educate team members on Company policies and procedures covering topics such as harassment,discriminati

153、on,and retaliation;Diversity and inclusion training which is intended to advance a diverse and inclusive culture built on one of our core values of respect,to foster different perspectives,ideas and innovative thinking;New store opening training that prepares our store managers to open new stores to

154、 Company standards;A management training program which covers all aspects of our store operations,delivering superior service,and managing the team member experience;Structured training on customer service and selling skills;Online product knowledge training produced in conjunction with key vendors;

155、Leadership development programs that prepare leaders to expand their current contributions;Quarterly all store team member meetings;andAn annual store manager meeting with vendor product presentations.Workplace Health and SafetyWe strive to provide a safe and healthy workplace for all team members a

156、nd drive a culture of safe practices and continuous improvement.We provide role based safety training during the onboarding process and through other specific safety programs.In response to the COVID-19 pandemic,we implemented enhanced cleaning standards,adapted to the evolving public health guidanc

157、e in our workplaces,and provided training and education to our team members.We implemented a vaccination incentive program,provided paid time off to receive vaccinations,and held onsite vaccination clinics for our team members among other COVID-19 mitigation practices.We continually monitor and adap

158、t our safety practices as the COVID-19 pandemic continues.COVID-19 ResponseThe Company has been and continues to closely monitor the impact of the COVID-19 pandemic on all facets of our business.This includes the impact on our team members,customers,suppliers,vendors,business partners,and supply cha

159、in networks.The health and safety of our team members and customers are the primary concerns of our management team.We have taken and continue to take numerous actions to promote health and safety,including,encouraging vaccination efforts,providing personal protective equipment to our team members,f

160、ollowing local and federal guidance regarding the use of masks in our facilities,maintaining enhanced services for cleaning and sanitation,continuing to provide additional functionality to support contactless shopping experiences,promoting social distancing and cleaning actions in our stores,and con

161、tinuing to offer remote work plans at our Store Support Center.Additionally,we continue to support our team members during this pandemic through offering COVID-19 paid medical leave,100%coverage of COVID-19 testing and treatment under our medical plan.Diversity,Equity,and Inclusion(DE&I)Tractor Supp

162、ly is committed to DE&I.We have built a strong and diverse team by purposefully seeking highly qualified diverse candidates with different backgrounds,experience,perspectives,ideas and skill sets.As we move forward,we are working to implement new DE&I initiatives that will result in an even more div

163、erse team across the entire company.Index7We are committed to providing a diverse and inclusive culture supported by our Mission&Values where we welcome diverse backgrounds and experiences and respectfully foster different perspectives,ideas and innovative thinking.We are stronger together,and we be

164、lieve in the authenticity our team members bring to work every day.By focusing on our team members,we know that our customers,communities and suppliers will be well served.Diversity and inclusion play a key role in moving our business forward.Our workforce is approximately 51%male and 49%female.Mino

165、rities comprise approximately 17%of our workforce.Women serve in key leadership roles within the Company,including as Executive Vice President,Chief Human Resources Officer,Senior Vice President,General Counsel and Corporate Secretary,Senior Vice President of Investor Relations and Public Relations,

166、Senior Vice President,Chief Marketing Officer and Senior Vice President of E-Commerce.We have taken several steps over the past twelve months to further enhance our diversity and inclusion strategy including publishing external DE&I goals aligned with our environmental,social,and governance(ESG)effo

167、rts,enhancing our DE&I Strategy to include supplier diversity efforts,establishing our DE&I Customer Promise and continuing activation of our numerous team member engagement groups supporting the development,community involvement and allyship within our Company.We will continue to build on these ini

168、tiatives to enhance our culture of respect and teamwork across our organization.Growth StrategyTractor Supply believes we can grow our business by being an integral part of our customers lives as the dependable supplier of Out Here lifestyle solutions,creating customer loyalty through personalized e

169、xperiences,our Neighbors Club loyalty program and providing convenience that our customers expect at anytime,anywhere,and in any way they choose.Our long-term growth strategy is to:(1)expand and deepen our customer base by providing personal,localized,and memorable customer engagements by leveraging

170、 content,social media,and digital shopping experiences,attracting new customers and driving loyalty,(2)evolve customer experiences by digitizing our business processes and furthering our omni-channel capabilities,(3)offer relevant assortments and services across all channels through exclusive and na

171、tional brands and continue to grow our total addressable market by introducing new products and services through our test and learn strategy,(4)drive operational excellence and productivity through continuous improvement,increasing space utilization,and implementing advanced supply chain capabilitie

172、s to support growth,scale and agility,and(5)expand through selective acquisitions,as such opportunities arise,to add complementary businesses and to enhance penetration into new and existing markets to supplement organic growth.Achieving this strategy will require a foundational focus on:(1)connecti

173、ng,empowering and growing our team to enhance our team members lives and the communities in which they live,enabling them to provide legendary service to our customers,and(2)allocating resources in a disciplined and efficient manner to drive profitable growth and build stockholder value,including le

174、veraging technology and automation to align our cost structure to support new business capabilities for margin improvement and cost reductions.Over the past five years,we have experienced considerable sales growth,resulting in a compounded annual growth rate of approximately 13.4%.We plan to open ap

175、proximately 75 to 80 new Tractor Supply and 10 new Petsense stores in fiscal 2022,a selling square footage increase of approximately 4%.In fiscal 2021,we opened 80 new Tractor Supply stores and seven new Petsense stores.In fiscal 2020,we opened 80 new Tractor Supply stores and nine new Petsense stor

176、es.This represents a selling square footage increase of approximately 4%during each of fiscal 2021 and fiscal 2020.At December 25,2021,we operated 2,181 retail stores in 49 states(2,003 Tractor Supply and Dels retail stores and 178 Petsense retail stores).Given the size of the communities that we ta

177、rget,we believe that there is ample opportunity for new store growth in many existing and new markets.We believe we have developed a proven method for selecting store sites and we believe we have significant additional opportunities for new Tractor Supply stores.We also believe that there is opportu

178、nity for continued growth for Petsense stores.Approximately 57%of our stores are in freestanding buildings and 43%are located in shopping centers.We lease approximately 95%of our stores and own the remaining 5%.In addition to new store expansion,we will continue to support our strategic growth throu

179、gh expansion of our distribution network and initiatives including,among others,space productivity and side lot improvements in certain existing stores as well as continued improvements in technology and infrastructure at our existing stores,and ongoing investments to enhance our digital and omni-ch

180、annel capabilities to better serve our customers.Index8CompetitionWe operate in a competitive retail industry.We believe the principal competitive factors include location of stores,fulfillment options,price,quality of merchandise,in-stock inventory consistency,merchandise assortment and presentatio

181、n,product knowledge,and customer service.We compete with general merchandise retailers,home center retailers,pet retailers,specialty and discount retailers,independently owned retail farm and ranch stores,numerous privately-held regional farm store chains and farm cooperatives,as well as internet-ba

182、sed retailers.However,we believe we successfully differentiate ourselves from many of these retailers by focusing on our specialized market niche for customers living the rural lifestyle.See further discussion of competition in 1A.“Risk Factors”of this Annual Report on Form 10-K.Seasonality and Weat

183、herOur business is seasonal.Historically,our sales and profits are the highest in the second and fourth fiscal quarters due to the sale of seasonal products.We usually experience our highest inventory and accounts payable balances during our first fiscal quarter for purchases of seasonal products to

184、 support the higher sales volume of the spring selling season,and again during our third fiscal quarter to support the higher sales volume of the cold-weather selling season.We believe that our business can be more accurately assessed by focusing on the performance of the halves,not the quarters,due

185、 to the fact that different weather patterns from year-to-year can shift the timing of sales and profits between quarters,particularly between the first and second fiscal quarters and the third and fourth fiscal quarters.Historically,weather conditions,including unseasonably warm weather in the fall

186、 and winter months and unseasonably cool weather in the spring and summer months,have unfavorably affected the timing and volume of our sales and results of operations.In addition,extreme weather conditions,including snow and ice storms,flood and wind damage,hurricanes,tornadoes,extreme rain,and dro

187、ughts have impacted operating results both negatively and positively,depending on the severity and length of these conditions.Our strategy is to manage product flow and adjust merchandise assortments and depth of inventory to capitalize on seasonal demand trends.Stewardship and Compliance with Envir

188、onmental MattersOur operations are subject to numerous federal,state,and local laws and regulations,enacted or adopted,regulating the discharge of materials into the environment or otherwise relating to the protection of the environment.We are committed to complying with all applicable environmental

189、 laws and regulations.We are also committed to becoming a more environmentally sustainable company.This commitment is demonstrated through our Stewardship Program,which is our environmental sustainability program.Through this program,the Company has implemented a number of initiatives designed to re

190、duce our impact on the environment.These initiatives include the installation of energy management systems,LED lighting,high efficiency heating/air conditioning systems,and recycling programs in our stores,distribution facilities,and Store Support Center.Our Store Support Center and our distribution

191、 centers in Casa Grande,Arizona,and Frankfort,New York,are LEED(Leadership in Energy and Environmental Design)Silver certified for environmentally sustainable design,construction,and operation.We also installed solar arrays at the Store Support Center in Brentwood,Tennessee,and our Tractor Supply st

192、ore in Hendersonville,Tennessee.The Company has been a SmartWay Transport partner since 2013.SmartWay Transport is a public-private initiative between the U.S.Environmental Protection Agency,large and small trucking companies,retailers,and other federal and state agencies.Its purpose is to improve f

193、uel efficiency and the environmental performance(reduction of both greenhouse gas emissions and air pollution)of supply chains.In December 2018,we announced a goal to reduce carbon emissions from our facilities by 25%by 2025 from our 2015 baseline as part of the Companys Stewardship Program.In Decem

194、ber 2020,we announced that we had reached this goal five years early.In December 2021,we released our 2020 Task Force on Climate-Related Financial Disclosures Report,following the announcement of our goal in September 2021 to reduce our carbon footprint by 50%by 2030 and achieve net zero missions ac

195、ross all operations by 2040.In the report,we discussed our approach to evaluating and managing climate change risks and identifying opportunities.We also detailed the next phase of our sustainability journey,including increasing efforts to procure renewable energy,continuing investments in energy ef

196、ficiency and cleaner technologies,avoiding future emissions through better design of both stores and distribution centers,and enhancing our Scope 3 focus with greater transparency and reduction efforts,including new vendor engagement to drive down value chain emissions.Index9Additional information c

197、an be found in our ESG Tear Sheet and on our website(TractorS).The information provided on our website is not part of this report,and is therefore not incorporated by reference unless such information is otherwise specifically referenced elsewhere in this report.Information about our Executive Offic

198、ersPursuant to General Instruction G(3)of Form 10-K,the following list is included in Part I of this Report in lieu of being included in the Proxy Statement for the Annual Meeting of Stockholders to be held on May 11,2022.The following is a list of the names and ages of all executive officers of the

199、 registrant,indicating all positions and offices with the registrant held by each such person and each persons principal occupations and employment during at least the past five years:NamePositionAgeHarry A.Lawton,IIIPresident and Chief Executive Officer47Kurt D.BartonExecutive Vice President Chief

200、Financial Officer and Treasurer50Robert D.MillsExecutive Vice President Chief Technology,Digital Commerce and Strategy 49John P.OrdusExecutive Vice President Chief Stores Officer46Jonathan S.EstepExecutive Vice President Chief Merchandising Officer42Melissa D.KerseyExecutive Vice President Chief Hum

201、an Resources Officer47Colin W.YankeeExecutive Vice President Chief Supply Chain Officer44Noni L.EllisonSenior Vice President General Counsel and Corporate Secretary50Christi C.KorzekwaSenior Vice President Chief Marketing Officer56Matthew L.RubinSenior Vice President and General Manager of Petsense4

202、2Harry A.Lawton,III was appointed as President and Chief Executive Officer on January 13,2020.Mr.Lawton served as President of Macys,Inc.from September 2017 to December 2019.Prior to that time,Mr.Lawton served as Senior Vice President,North America at eBay,Inc.since May 2015.Mr.Lawton previously hel

203、d a number of leadership positions at Home Depot,Inc.from 2005 to 2015,including Senior Vice President of Merchandising and head of Home Depots online business.Since January 2019,Mr.Lawton has served as a director of Sealed Air Corporation and previously served as a director of Buffalo Wild Wings,In

204、c.from October 2016 to February 2018.Kurt D.Barton was promoted to Executive Vice President Chief Financial Officer and Treasurer in February 2019,after having served as Senior Vice President Chief Financial Officer and Treasurer since March 2017.Prior to that time,Mr.Barton served as Senior Vice Pr

205、esident Controller of the Company since February 2016.Mr.Barton previously served as Vice President Controller of the Company from February 2009,after having served as the Companys Director,Internal Audit from July 2002 to February 2009.Mr.Barton has served in various other leadership roles in accou

206、nting since he joined the Company in 1999.Mr.Barton,a Certified Public Accountant,began his career in public accounting in 1993,spending six years at Ernst&Young,LLP.Robert D.Mills has served as Executive Vice President Chief Technology,Digital Commerce and Strategy Officer since August 2018,prior t

207、o which he served as the Companys Senior Vice President Chief Information Officer since February 2014.Mr.Mills previously served as Chief Information Officer for Ulta Beauty,Inc.from October 2011 until he joined the Company.From 2005 to 2011,Mr.Mills was Vice President,Chief Information Officer for

208、the online business unit at Sears Holdings Corporation where he began as an Information Technology Customer Relationship Leader in 2001.Prior to 2001,Mr.Mills held roles at The Allstate Corporation,Rockwell International,Telecommunications Division,and Household Finance Corporation.Since March 2018,

209、Mr.Mills has served as a director of B&G Foods,Inc.John P.Ordus was promoted to Executive Vice President Chief Stores Officer in February 2020,after having served as the Companys Senior Vice President-Store Operations since August 2015.Prior to that time,Mr.Ordus served as Regional Vice President fo

210、r the Company from June 2010 and as a Regional Director for the Company since September 2008.Mr.Ordus joined the Company as a District Manager in February 2002 after the acquisition of Quality Farm&Fleet,Inc.with which Mr.Ordus held roles since January 1988.Jonathan S.Estep was promoted to Executive

211、 Vice President Chief Merchandising Officer in February 2020,after having served as the Companys Senior Vice President,General Merchandising since April 2017.Prior to that time,Mr.Estep served the Company as a Vice President,Divisional Merchandise Manager from February 2014.Mr.Estep also previously

212、served in various other leadership roles in merchandising since he re-joined the Company in January 2008.Index10Melissa D.Kersey was appointed as Executive Vice President Chief Human Resources Officer on July 20,2020.Ms.Kersey was previously Senior Vice President and Chief People Officer for McDonal

213、ds USA,LLC from 2017 until July 2020.Ms.Kersey also previously held a number of executive level roles with Walmart Inc.(previously Wal-Mart Stores,Inc.)from 2008 to 2017,including Senior Vice President of Global Human Resource Transformation and People Services,Senior Vice President and Chief Human

214、Resources Officer for U.S.Stores,and Senior Vice President of Learning and Human Resources Strategy.Prior to that time,Ms.Kersey spent eight years with Alltel Wireless and four years with the Target Corporation in Operations,Distribution,Human Resources and Technology roles.Colin W.Yankee was promot

215、ed to Executive Vice President-Chief Supply Chain Officer in February 2020,after having served as the Companys Senior Vice President,Supply Chain since November 2015 when he joined the Company.Mr.Yankee was previously Vice President of Logistics for Neiman Marcus Group LLC from 2013 to 2015.Prior to

216、 that time,Mr.Yankee held various leadership roles in logistics and supply chain with the Target Corporation since 2004.He began his career as a Cavalry Officer,Captain in the United States Army.Noni L.Ellison was appointed as Senior Vice President General Counsel and Corporate Secretary on January

217、11,2021.Ms.Ellison was previously General Counsel,Chief Compliance Officer and Corporate Secretary for Carestream Dental LLC from August 2017 until January 2021.Ms.Ellison also previously served as Associate General Counsel and Assistant Corporate Secretary at W.W.Grainger,Inc.from February 2015 unt

218、il July 2017.Prior to that time,Ms.Ellison held roles of increasing responsibility at Turner Broadcasting System,Inc.and Scripps Networks Interactive,Inc.and practiced law with two national law firms as a corporate finance and securities associate.Christi C.Korzekwa was promoted to Senior Vice Presi

219、dent-Chief Marketing Officer in February 2022,after having served as Senior Vice President Marketing since February 2015.Ms.Korzekwa previously served as Vice President,Marketing since she joined the Company in February 2012.Prior to joining the Company,Ms.Korzekwa served as Senior Vice President,Di

220、rector of Client Services for Blue Sky Agency.She worked for Home Depot,Inc.from 2004 to 2011 in roles of increasing importance in marketing and advertising,most recently as Senior Director,Marketing.Before joining Home Depot,Inc.,Ms.Korzekwa spent 17 years with TM Advertising,LLC,most recently serv

221、ing as their Senior Vice President,Global Media Director.Matthew L.Rubin was appointed Senior Vice President and General Manager of Petsense on February 1,2021.Mr.Rubin previously served as Senior Vice President of Business Development&Growth at The Michaels Stores,Inc.from October 2018 until Januar

222、y 2021.Mr.Rubin was previously an executive in Accenture plcs North America Retail Practice from April 2015 to October 2018.Before April 2015,Mr.Rubin was a Partner at Consolidated Venture Partners&Consolidated Marketing and a Co-Founder&Finance Partner at OnTrend Products.Mr.Rubin also previously s

223、erved as Vice President of Specialty Business Operations at BJs Wholesale Club Holding,Inc.Mr.Rubin began his career at Office Depot,Inc.where he had multiple merchandising and strategic project leadership roles of increasing responsibility.Additional InformationWe file reports with the Securities a

224、nd Exchange Commission(“SEC”),including Annual Reports on Form 10-K,quarterly reports on Form 10-Q,current reports on Form 8-K and other reports as required.We are an electronic filer and the SEC maintains an Internet website at sec.gov that contains the reports,proxy and information statements,and

225、other information we file.We make available,free of charge through our Internet website,TractorS,our Annual Report on Form 10-K,quarterly reports on Form 10-Q,current reports on Form 8-K,and all amendments to those reports as soon as reasonably practicable after such material is electronically filed

226、 with or furnished to the SEC.The information provided on our website is not part of this report,and is therefore not incorporated by reference unless such information is otherwise specifically referenced elsewhere in this report.Index11Item 1A.Risk FactorsOur business faces many risks.Certain risks

227、 of which we are currently aware and deem to be material are described below.If any of the events or circumstances described in the following risk factors occur,our business,financial condition or results of operations may significantly suffer,and the trading price of our common stock could decline.

228、These risk factors should be read in conjunction with the other information in this Form 10-K.Strategic and Competitive RisksFailure to protect our reputation could have a material adverse effect on our brand name or any of our exclusive brands.Our success depends in part on the value and strength o

229、f the Tractor Supply name,including our exclusive brands.The Tractor Supply name is integral to our business,as well as to the implementation of our strategies for expanding our business.Maintaining,promoting,and positioning our brand will depend largely on the success of our marketing and merchandi

230、sing efforts and our ability to provide high quality merchandise and a consistent,high quality customer experience.Our brand could be adversely affected if we fail to achieve these objectives or if our public image or reputation were to be tarnished by negative publicity,whether or not based on fact

231、.Any failure to comply or accusation of our failure to comply with ethical,social,product,labor,data privacy,and environmental standards could also jeopardize our reputation and potentially lead to various adverse consumer actions.Customers are also increasingly using social media to provide feedbac

232、k and information about our Company,including our products and services,in a manner that can be quickly and broadly disseminated.Further,adverse publicity about our merchandise products,whether valid or not,may discourage consumers from buying the products we offer.Additionally,our proprietary right

233、s in our trademarks,trade names,service marks,domain names,copyrights,patents,trade secrets and other intellectual property rights are valuable assets of our business.We may not be able to prevent or even discover every instance of unauthorized third party uses of our intellectual property or diluti

234、on of our brand names,such as when a third party uses trademarks that are identical or similar to our own.Any of these events could result in decreased revenue or otherwise adversely affect our business.We may be unable to increase sales at our existing stores.We experience fluctuations in our compa

235、rable store sales at our existing stores,defined as sales in stores which have been open for at least twelve months.See Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations for a further discussion of comparable store sales.Various factors affect the comparable

236、 store sales at our existing stores,including,among others,the general retail sales environment,our ability to efficiently source and distribute products,global supply chain disruptions,changes in our merchandise assortment,competition,proximity of our locations to one another or to the locations of

237、 other competing retailers,increased presence of online retailers,current economic conditions,customer satisfaction with our products,retail pricing,the timing of promotional events,the release of new merchandise,the success of marketing programs,weather conditions,and our ability to attract and ret

238、ain qualified team members.These factors may cause the comparable store sales results at our existing stores to differ materially from prior periods and from expectations.Past comparable store sales are not an indication of future results,and there can be no assurance that our comparable store sales

239、 will not decrease in the future.Furthermore,the significant positive impact of the COVID-19 pandemic on the demand for our products in fiscal 2021 and 2020 resulted in a significant increase in new or reacquired customers and in comparable store sales growth.Our sales performance in fiscal 2021 and

240、 2020 may present a greater risk to our ability to increase comparable store sales in the following year(s)and in our ability to maintain our new or reacquired customers gained in those years.Therefore,we may not be able to sustain or increase our comparable store sales in fiscal 2022 and beyond.Fai

241、lure to open and manage new stores in the number and manner currently contemplated could adversely affect our financial performance.An integral part of our business strategy includes the expansion of our store base through new store openings.This expansion strategy is dependent on our ability to fin

242、d suitable locations,and we face competition from many retailers and other businesses for such sites.If we are unable to implement this strategy,our ability to increase our sales,profitability,and cash flow could be impaired significantly.To the extent that we are unable to open new stores in the ma

243、nner we anticipate(due to,among other reasons,site approval or unforeseen delays in construction),our sales growth may be impeded.Although we have a rigorous real estate site selection and approval process,there can be no assurance that our new store openings will be successful or result in incremen

244、tal sales and profitability for the Company.New stores build their sales volumes and refine their merchandise selection over time and,as a result,generally have lower gross margins and higher Index12operating expenses as a percentage of net sales than our more mature stores.As we continue to open ne

245、w stores,there may be a negative impact on our results from a lower contribution margin of these new stores until their sales levels ramp to chain average,if at all,as well as from the impact of related pre-opening costs.Additionally,new stores can also impact the sales and contribution margins of e

246、xisting stores located in close proximity.As we execute this expansion strategy,we may also experience managerial or operational challenges which may prevent any expected increase in sales,profitability,or cash flow.Our ability to manage our planned expansion depends on the adequacy of our existing

247、information systems,the efficiency and expansion of our distribution systems,the adequacy of the hiring and training process for new personnel(especially store managers),the effectiveness of our controls and procedures,and the ability to identify customer demand and build market awareness in differe

248、nt geographic areas.There can be no assurance that we will be able to achieve our planned expansion,that the new stores will be effectively integrated into our existing operations or that such stores will be profitable.Our merchandising and marketing initiatives may not provide expected results.We b

249、elieve our past performance has been based on,and future success will depend,in part,upon the ability to develop and execute merchandising initiatives with effective marketing programs.These merchandising initiatives and marketing programs may not deliver expected results,and there is no assurance t

250、hat we will correctly identify and respond in a timely manner to evolving trends and consumer preferences and expectations.If we misjudge the market or our marketing programs are not successful,we may overstock unpopular products and be forced to take inventory impairment or retail price reductions

251、that have a material adverse effect on our profitability.Failure to execute and promote such initiatives in a timely manner could harm our ability to grow the business and could have a material adverse effect on our results of operations and financial condition.Shortages of key merchandise could als

252、o have a material adverse effect on our financial condition and results of operations.Competition may hinder our ability to execute our business strategy and adversely affect our operations.We operate in the highly competitive retail merchandise sector with numerous competitors.These competitors inc

253、lude general merchandise retailers,home center retailers,pet retailers,specialty and discount retailers,independently-owned retail farm and ranch stores,numerous privately-held regional farm store chains,and farm cooperatives,as well as internet-based retailers.We compete for customers,merchandise,r

254、eal estate locations,and employees.This competitive environment subjects us to various other risks,including the inability to continue our store and sales growth and to provide attractive merchandise to our customers at competitive prices that allow us to maintain our profitability.Our failure to co

255、mpete effectively in this environment could adversely impact our financial performance.We may pursue strategic acquisitions and the failure of an acquisition to produce the anticipated results or the inability to fully integrate the acquired companies could have an adverse impact on our business.We

256、may,from time to time,acquire businesses we believe to be complementary to our business,for example,the pending acquisition of Orscheln Farm and Home,LLC discussed previously.The success of an acquisition is based on our ability to make accurate assumptions regarding the valuation,operations,growth

257、potential,integration,and other factors relating to the target business.Acquisitions may result in difficulties in assimilating acquired companies and may result in the diversion of our capital and our managements attention from other business issues and opportunities.We may not be able to successfu

258、lly integrate an organization that we acquire,including their personnel,financial systems,distribution,operations,and general operating procedures.If we fail to successfully integrate acquisitions,we could experience increased costs associated with operating inefficiencies which could have an advers

259、e effect on our financial results.Also,while we employ several different methodologies to assess potential business opportunities,acquired businesses may not achieve desired profitability objectives or other expectations,causing lower than expected earnings and cash flows which could adversely affec

260、t our financial performance and subsequently require impairment of long-lived assets,goodwill and other intangible assets.Weather and Climate RisksUnseasonal and extreme weather may have a significant impact on our financial results.Weather conditions affect the demand for,and in some cases the supp

261、ly of,products,which in turn has an impact on prices.Historically,weather conditions,including unseasonably warm weather in the fall and winter months and unseasonably cool weather in the spring and summer months,have affected the timing and volume of our sales and results of operations.In addition,

262、extreme weather conditions,such as more frequent or intense hurricanes,thunderstorms,tornadoes,flood,fires,Index13droughts,and snow or ice storms,as well as rising sea levels,have impacted operating results both positively and negatively and may positively or negatively impact our business in the fu

263、ture.While extreme weather conditions can positively impact our operating results by increasing demand in affected locations for products needed to cope with the weather condition and its effects,they can also negatively affect our business depending on the severity and length of these conditions,as

264、 a result of store closings,damage to our stores or merchandise,or the inability of customers to shop at our stores due to weather conditions.Our strategy is to manage product flow and adjust merchandise assortments and depth of inventory to capitalize on seasonal demand trends.Should such a strateg

265、y not be effective,the weather may have a material adverse effect on our financial condition and results of operations.Weather conditions may cause a disruption in our distribution and transportation network that would adversely affect our ability to conduct our operations.We rely on our distributio

266、n and transportation network,including third-party logistics providers,to provide goods to our stores and to our customers in a timely and cost-effective manner through deliveries to our distribution facilities from vendors and then from the distribution facilities or direct ship vendors to our stor

267、es or customers by various means of transportation,including shipments by sea,air,rail,and truck.Although we believe that our operations are efficient,disruptions due to extreme weather conditions,including snow and ice storms,flood and wind damage,hurricanes,tornadoes,extreme rain,fires and drought

268、s may result in delays in the transportation and delivery of merchandise to our distribution centers,our stores,or our customers.Significant disruptions or delays in our distribution and transportation network could adversely affect sales and the satisfaction of our customers which could have a mate

269、rial adverse impact on our financial condition and results of operations.We may be adversely affected by legal,regulatory or market responses to global climate change.Growing concern over climate change has led policy makers in the U.S.to consider the enactment of legislative and regulatory proposal

270、s that would impose mandatory requirements on greenhouse gas emissions.Such laws,if enacted,are likely to impact our business in a number of ways.For example,we use natural gas,diesel fuel,gasoline and electricity in conducting our operations.Increased government regulations to limit carbon dioxide

271、and other greenhouse gas emissions may result in increased compliance costs and legislation or regulation affecting energy inputs,which could materially affect our profitability.Compliance with any new or more stringent laws or requirements,or stricter interpretations of existing laws,could require

272、additional expenditures by us or our suppliers.Our inability to appropriately respond to such changes could adversely impact our business,financial condition,results of operations or cash flows.Macroeconomic RisksGeneral economic conditions may adversely affect our financial performance.Our results

273、of operations may be sensitive to changes in overall economic conditions that impact consumer spending,including discretionary spending.A weakening of economic conditions affecting disposable consumer income such as lower employment levels,uncertainty or changes in business or political conditions,s

274、ocial and political causes and movements,higher interest rates,higher tax rates,higher fuel and energy costs,higher labor and healthcare costs,the impact of natural disasters or acts of terrorism,general health epidemics,and other matters could reduce consumer spending or cause consumers to shift th

275、eir spending to competitors.A general reduction in the level of discretionary spending,shifts in consumer discretionary spending to our competitors or shifts in discretionary spending to less profitable products sold by us could result in lower net sales,slower inventory turnover,greater markdowns o

276、n inventory,and a reduction in profitability due to lower margins.Purchase price volatility,including inflationary and deflationary pressures,may adversely affect our financial performance.Although we cannot determine the full effect of inflation and deflation on our operations,we believe our sales

277、and results of operations are affected by both.We are subject to market risk with respect to the pricing of certain products and services,which include,among other items,grain,corn,steel,petroleum,cotton,and other commodities,as well as duties,tariffs,diesel fuel,and transportation services.Therefor

278、e,we may experience both inflationary and deflationary pressure on product cost,which may impact consumer demand and,as a result,sales and gross margin.Our strategy is to reduce or mitigate the effects of purchase price volatility principally by taking advantage of vendor incentive programs,economie

279、s of scale from increased volume of purchases,adjusting retail prices,and selectively buying from the most competitive vendors while maintaining product quality.Should our strategy to mitigate purchase price volatility not be effective,our financial performance could be adversely impacted.Index14Tea

280、m Member RisksOur failure to attract and retain qualified team members,increases in wage,and labor costs,and changes in laws and other labor issues could adversely affect our financial performance.Our ability to maintain and continue expanding operations depends on our ability to attract and retain

281、a large and growing number of qualified team members.Our ability to meet labor needs while controlling wage and related labor costs is subject to numerous external factors,including the availability of a sufficient number of qualified persons in the work force,unemployment levels,prevailing wage rat

282、es,increases in legally required minimum wage rates,changing demographics,health and other insurance costs,changes in employment legislation and the potential for changes in local labor practices or union activities.If we are unable to locate,attract or retain qualified personnel,or if costs of labo

283、r or related costs increase significantly,our financial performance could be adversely affected.We are subject to federal,state,and local laws governing employment practices and working conditions.These laws cover wage and hour practices,labor relations,paid and family leave,workplace safety and imm

284、igration,among others.The laws and regulations being passed at the state and local level create unique challenges for a multi-state employer.We must continue to monitor and adapt our employment practices to comply with these various laws and regulations.If our costs of labor or related costs increas

285、e significantly as new or revised labor laws,rules or regulations or healthcare laws are adopted or implemented,our financial performance could be adversely affected.The loss of current members of our senior management team and other key team members or the failure to successfully manage an executiv

286、e officer transition may adversely affect our operating results.Our success depends in large part on the continued availability and service of our executive officers,senior management,and other key team members.Competition for senior management and key team members in our industry is strong and we m

287、ay not be able to retain our key team members or attract new qualified team members.We must continue to recruit,retain,and motivate management and other team members sufficiently,both to maintain our current business and to execute our long-term strategic growth initiatives.The loss of any of our ex

288、ecutive officers or other key senior management without sufficient advance notice could prevent or delay the implementation and completion of our strategic initiatives or divert managements attention to seeking qualified replacements.Additionally,any failure by us to manage a successful leadership t

289、ransition of an executive officer and to timely identify a qualified permanent replacement could harm our business and have a material adverse effect on our results of operations.Supply Chain and Third-Party Vendor RisksWe face risks associated with vendors from whom our products are sourced.The pro

290、ducts we sell are sourced from a variety of domestic and international vendors.We have agreements with our vendors in which the vendors agree to comply with applicable laws,including labor and environmental laws,and to indemnify us against certain liabilities and costs.Our ability to recover liabili

291、ties and costs under these vendor agreements is dependent upon the financial condition and integrity of the vendors.We rely on long-term relationships with our suppliers but have no significant long-term contracts with such suppliers.Our future success will depend in large measure upon our ability t

292、o maintain our existing supplier relationships or to develop new ones.This reliance exposes us to the risk of inadequate and untimely supplies of various products due to political,economic,social,health(including,but not limited to,the COVID-19 coronavirus),or environmental conditions,transportation

293、 delays,or changes in laws and regulations affecting distribution.Our vendors may be forced to reduce their production,shut down their operations or file for bankruptcy protection,which could make it difficult for us to serve the markets needs and could have a material adverse effect on our business

294、.While the Company selects these third-party vendors carefully,it does not control their actions or the components or manufacture of their products.Any problems caused by these third-parties,or issues associated with their products or workforce,including customer or governmental complaints,breakdown

295、s or other disruptions in communication services provided by a vendor,failure of a vendor to handle current or higher volumes,and cyber attacks or security breaches at a vendor could subject the Company to litigation and adversely affect the Companys ability to deliver products and services to its c

296、ustomers and have a material adverse effect on our results of operations and financial condition.We rely on foreign manufacturers for various products that we sell.In addition,many of our domestic suppliers purchase a portion of their products from foreign sources.As an importer,our business is subj

297、ect to the risks generally associated with doing business internationally,such as domestic and foreign governmental regulations,economic disruptions,global or regional Index15health epidemics,delays in shipments,transportation capacity and costs,currency exchange rates,and changes in political or ec

298、onomic conditions in countries from which we purchase products.If any such factors were to render the conduct of business in particular countries undesirable or impractical or if additional U.S.quotas,duties,tariffs,taxes,or other charges or restrictions were imposed upon the importation of our prod

299、ucts in the future,our financial condition and results of operations could be materially adversely affected.The political landscape in the U.S.contains uncertainty with respect to tax and trade policies,tariffs and regulations affecting trade between the U.S.and other countries.We source a portion o

300、f our merchandise from manufacturers located outside the U.S.,primarily in Asia and Central America.Major developments in tax policy or trade relations,such as the disallowance of tax deductions for imported merchandise or the imposition of tariffs on imported products,could have a material adverse

301、effect on our business,results of operations,and financial condition.We rely on manufacturers located in foreign countries,including China,for merchandise.Additionally,a portion of our domestically purchased merchandise is manufactured abroad.Our business may be materially adversely affected by risk

302、s associated with international trade,including the impact of current or potential tariffs by the U.S.with respect to certain consumer goods imported from China.We source a portion of our merchandise from manufacturers located outside the U.S.,primarily in Asia and Central America,and many of our do

303、mestic vendors have a global supply chain.The U.S.has imposed tariffs on certain products imported into the U.S.from China and could propose additional tariffs.The imposition of tariffs on imported products has increased our costs and could result in reduced sales and profits.The changes in certain

304、tax and trade policies,tariffs and other regulations affecting trade between the U.S.and other countries enacted under the prior U.S.administration increased the cost of our merchandise sourced from outside of the U.S.,which represents a large percentage of our overall merchandise.It remains unclear

305、 how tax or trade policies,tariffs or trade relations may change under the current U.S.administration,which could adversely affect our business,results of operations,effective income tax rate,liquidity and net income.In addition,the imposition of tariffs by the U.S.has resulted in the adoption of ta

306、riffs by China on U.S.exports and could result in the adoption of tariffs by other countries as well.A resulting trade war could have a significant adverse effect on world trade and the world economy.Further,the imposition of tariffs or other changes in world trade could have an impact on certain U.

307、S.industries and consumers and could negatively impact the consumer demand for products that we sell.We continue to evaluate the impact of the effective and potential tariffs on our supply chain,costs,sales,and profitability as well as our strategies to mitigate any negative impact,including negotia

308、ting with our vendors,seeking alternative sourcing options,and adjusting retail selling prices.Given the uncertainty regarding the scope and duration of the current and potential tariffs,as well as the potential for additional trade actions by the U.S.or other countries,the impact on our business,re

309、sults of operations,and financial condition is uncertain but could be significant.Thus,we can provide no assurance that any strategies we implement to mitigate the impact of such tariffs or other trade actions will be successful in whole or in part.To the extent that our supply chain,costs,sales,or

310、profitability are negatively affected by the tariffs or other trade actions,our business,financial condition,and results of operations may be materially adversely affected.A significant disruption to our distribution network or to the timely receipt of inventory could adversely impact sales or incre

311、ase our transportation costs,which would decrease our profits.We rely on our distribution and transportation network,including third-party logistics providers,to provide goods to our stores in a timely and cost-effective manner through deliveries to our distribution facilities from vendors and then

312、from the distribution facilities or direct ship vendors to our stores or customers by various means of transportation,including shipments by sea,air,rail,and truck.Any disruption,unanticipated expense,or operational failure related to this process could negatively affect our operations.For example,u

313、nexpected delivery delays(including delays due to weather,fuel shortages,work stoppages,global or regional health epidemics,product shortages from vendors,or other reasons)or increases in transportation costs(including increased fuel costs or a decrease in transportation capacity for overseas shipme

314、nts)could significantly decrease our ability to provide adequate products to meet increased customer demand for certain products,or products at a desired price,resulting in lower sales and profitability.In addition,labor shortages or work stoppages in the transportation industry or long-term disrupt

315、ions to the national and international transportation infrastructure that lead to delays or interruptions of deliveries could negatively affect our business.Also,a fire,tornado,or other disaster at one of our distribution facilities could disrupt our timely receiving,processing,and shipment of merch

316、andise to our stores which could adversely affect our business.While we believe there are adequate reserve quantities and alternative suppliers available,shortages or interruptions in the receipt or supply of products caused by unanticipated demand,such as occurred during,and as the economy recovers

317、 from,the COVID-19 pandemic,problems in production or distribution,financial or other difficulties of supplies,Index16inclement weather or other economic conditions,including the availability of qualified drivers and distribution center team members,could adversely affect the availability,quality an

318、d cost of products,and our operating results.The implementation of our supply chain initiatives could disrupt our operations in the near term,and these initiatives might not provide the anticipated benefits or might fail.We maintain a network of distribution facilities and have plans to build new di

319、stribution facilities and expand existing facilities to support our long-term strategic growth initiatives.Delays in opening new or expanded distribution facilities could adversely affect our future operations by slowing store growth or negatively impacting our fulfillment capabilities,which may in

320、turn reduce revenue growth.In addition,distribution-related construction or expansion projects entail risks which could cause delays and cost overruns,such as:shortages of materials;shortages of skilled labor or work stoppages;unforeseen construction,scheduling,engineering,environmental,or geologica

321、l problems;weather interference;fires or other casualty losses;and unanticipated cost increases.The completion date and ultimate cost of future projects could differ significantly from initial expectations due to construction-related or other reasons.We cannot guarantee that all projects will be com

322、pleted on time or within established budgets.We continue to make significant technology investments in our supply chain.These initiatives are designed to streamline our distribution process so that we can optimize the delivery of goods and services to our stores,distribution facilities,and customers

323、 in a timely manner and at a reasonable cost.The cost and potential problems and interruptions associated with the implementation of these initiatives,including those associated with managing third-party service providers and employing new web-based tools and services,could disrupt or reduce the eff

324、iciency of our operations in the near term.In addition,our improved supply chain technology might not provide the anticipated benefits,it might take longer than expected to realize the anticipated benefits,or the initiatives might fail altogether.Technology,Data Security,Business Continuity and Disa

325、ster Recovery RisksAny failure to maintain the security of the information relating to our business,customers,team members,and vendors that we hold,whether as a result of cybersecurity attacks or otherwise,could damage our reputation with customers,employees,and vendors,could cause us to incur subst

326、antial additional costs and to become subject to litigation,and could materially affect our operating results,financial condition,and liquidity.We depend on information systems and technology,some of which are managed or provided by third-parties,for many activities important to our business.As do m

327、ost retailers,we receive and store in our information systems certain personal and other sensitive information about our business,customers,team members,and vendors.Additionally,we also receive and process information permitting cashless payments as part of our in-store and online operations at Trac

328、torS and P and on our mobile application,some of which depend upon the secure transmission of confidential information over public networks.The information that we receive and store makes us subject to cybersecurity attacks and cyber incidents,which are occurring more frequently,are constantly evolv

329、ing in nature,are becoming more sophisticated,and are being made by groups and individuals with a wide range of expertise and motives.We are the target of attempted cyber and other security threats and we continuously monitor our information technology networks and infrastructure in an effort to pre

330、vent,detect,address and mitigate the risk of unauthorized access,misuse,computer viruses and other events that could have a security impact.However,these security measures cannot provide absolute assurance or guarantee that we will be successful in preventing,detecting,or responding to every such br

331、each or disruption and/or preventing the misuse of confidential information of our business,customers,team members,or vendors.Similar risks exist with respect to the third-party vendors on which we rely for aspects of our information technology support services and administrative functions,even if t

332、he attack or breach does not directly impact our systems or information.A compromise of our information security and privacy controls,or those of businesses and vendors with whom we interact,which results in confidential information being accessed,obtained,damaged,or used by unauthorized or improper

333、 parties;loss or unavailability of data;disruptions to our business activities;or any other outcome stemming from a cybersecurity incident could materially adversely affect our reputation with our customers,team members,and vendors,as well as our operations,results of operations,financial condition,and liquidity,and could result in significant legal and financial exposure beyond the scope or limit