1、Annual Report 20205401 Virginia WayBrentwood,TN 37027(615)440-4000|TractorSTractor Supply Company|Annual Report 2020Design by Liquid Creative,I 2021,Tractor Supply Co.All rights reservedOur PerformanceWe are the largest rural lifestyle retailer in the United States,and each day we strive to provide
2、our customers with legendary customer service,in store and online.2020 Sales by CategoryLivestock&Pet47%Hardware,Tools&Truck21%Seasonal,Gift&Toy 21%Clothing&Footwear7%Agriculture4%Cash Returnedto Shareholders($in Millions)518696503497454Net Income PerDiluted Share($)6.384.663.304.313.27Comparable St
3、ore Sales Increase(%)23.12.72.75.11.6Net Sales($in Billions)191919191717171718181818161616162020202010.68.47.37.96.85981757642826128323750472122114172427221426107333142266899662322823232698929661582495194211113412732182011817105101064310151,923Tractor Supply Stores182Petsense Stores8Distribution Cen
4、tersStore count as of December 26,2020Tractor Supply and Petsense team,2020 was a year we will never forget.It was a year of literal and metaphorical fires.Through it all,you persevered to deliver a record-breaking year.But,more importantly,through it all,you lived our Mission and Values.Thank you.T
5、hank you for going the Country Mile the long,winding Country Mile.Thank you for going the Country Mile to support each other.You operated through a global pandemic.You demonstrated courage,determination,and passion.You embraced a culture where everyones unique talents are valued,and all of our backg
6、rounds are celebrated.Thank you for going the Country Mile to be the dependable supplier to our customers.You kept our doors open.You made sacrifices and worked hard,perhaps harder than ever before.You rolled out new initiatives to meet customer needs.You plowed ahead.Thank you for going the Country
7、 Mile to give back to our communities.You supported recovery efforts from the most active Atlantic hurricane season on record and the burning of over 10 million acres across California,Oregon,and Washington.You were there for your neighbors.Thank you for going the Country Mileall 42,000 STRONGER TOG
8、ETHER.In the midst of the numerous tragedies of 2020,we have also witnessed exceptional courage,determination,and compassion as we all strove to overcome challenges and maintain some sense of normalcy.For Tractor Supply,let me share with you some of the highlights that made 2020 an extraordinary yea
9、r.We showed our agility and resiliency,both of which enabled us to be there for each other and our customers as an essential,needs-based retailer for the Out Here lifestyle.Summary of Fiscal 2020 Results:For the year,we achieved record sales and operating performance.We had strong net sales gains of
10、 27.2%,with comparable store sales up 23.1%when compared to fiscal 2019.We reached over$10.6 billion in net sales for the year,a significant 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 opera
11、tions.We returned$517.6 million in capital to shareholders through the combination of share repurchases and a growing dividend.Our omni-channel sales saw strong triple-digit percentage growth over last year and increased as a percentage of our overall sales.The work we did this year to improve our o
12、mni-channel capabilities has certainly resonated with our customers.They have adopted our digital tools at a rapid pace that compressed our projected timelines of several years into a matter of months.For the year,75%of our omni-channel sales were picked up at a Tractor Supply store,further reinforc
13、ing the importance of our stores to our customers.We expanded our in-store and digital capabilities to make it easier and safer to shop at Tractor Supply.We were nimble and agile in offering curbside pickup and same-day/next-day delivery.We also relaunched our website,and we rolled out our new mobil
14、e app,which already has over one million downloads.We pivoted our marketing spending from more traditional print media to digital and national TV.We launched our first national advertising campaign in over a decade.Our research indicates that Tractor Supply has become more top of mind with consumers
15、 as our unaided brand awareness increased 800 basis points.Over a year ago,I had the great honor of stepping into the role of President and CEO of Tractor Supply.I knew that the year ahead would be unforgettable,but never could I have imagined what would follow.We will all always remember 2020.While
16、 we will never recall the year with anything close to fondness,it will be remembered at Tractor Supply with a small measure of pride as we reflect on our efforts to take care of our fellow Team Members,support our customers,and invest for the future.As a purpose-driven organization,our mission is to
17、“work hard,have fun and make money by providing legendary service and great products at everyday low prices.”Our mission is supported by a well-developed set of values that guide our actions.Over the past year,Ive seen our incredible culture rise to the challenge.Across our stores and distribution c
18、enters,our Team Members have gone the Country Mile to take care of each other and serve our customers.Ive heard from many customers who are thankful for our presence in their communities.And,Ive witnessed us embrace diversity and equality,commit to actions to advance our culture,and rally around the
19、 theme of STRONGER TOGETHER.Our Team Members are at the heart of our relationship with our customers,and protecting the health and well-being of all of them has been our utmost priority over the course of the pandemic.We have spared no expense to implement industry-leading best practices,including c
20、leaning and sanitization,systemic testing,contact tracing,and case management.We implemented paid sick leave for any Team Members affected by COVID-19.In addition to industry-leading safety protocols,we have shown our commitment to our Team Members through appreciation bonuses,permanent wage increas
21、es,and enhanced benefits offerings.At Tractor Supply,we are committed to being part of the solution for our Team Members,our customers,and our communities.We remain steadfast in that commitment going forward.To Our Stakeholders,Hal LawtonPresident and Chief Executive Officer2|Tractor Supply Company
22、In 2020,we had more customers shop with us than ever before,with increased sales among existing customers,new customers,and reacquired customers.We continued to gain market share and benefited from more customers shopping with us with larger baskets.All customer segments and all value segments exper
23、ienced growth.We exited the year with nearly 19 million Neighbors Club members.For the full year,over 11 million new identified customers and more than 6 million reactivated customers shopped at Tractor Supply.We are seeing strong retention with these customers and have robust plans in place to enga
24、ge them with new capabilities,marketing,and product offerings.We opened 80 new Tractor Supply stores,including our 1,900th store location,in Oakhurst,California.We also announced plans for a new distribution center in Navarre,Ohio,that is expected to be operational by the fall of 2022.We reinforced
25、our longstanding commitment to ESG through improved disclosure and transparency.We also met our target of a 25%reduction in our carbon emissions five years earlier than planned.We added more than 10,000 Team Member positions to support the growth of our business.These new Team Members were critical
26、to our ability to service our customers at the elevated volumes we have been experiencing.We also supported our Team Members and their families with a company-wide family pizza night,3,000 Chromebooks for virtual school,and seasonal appreciation kits.We also gave back to the communities we call home
27、.In 2020,we donated over$12 million to community organizations through direct giving,sponsorships,fundraisers,and more.This includes the establishment of the Tractor Supply Company Foundation with funding of$4 million to help support vibrant rural communities.We also joined the American Connection P
28、roject Broadband Coalition to help bridge the rural digital divide.As part of that commitment,we are now offering free high-speed internet access for guests across more than 1,400 of our store parking lots.Overall,2020 highlighted the resiliency of the Tractor Supply team and illuminated the potenti
29、al of the business.We have the opportunity to create and define our future and extend our leadership for years to come.OUR 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 of o
30、ur 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 capabiliti
31、es 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 VALUES
32、 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-do”a
33、ttitude.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 viewpoints.E
34、xecute 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 to
35、your commitments.Tractor Supply Company|3 Life Out Here Strategy As we look ahead,we believe there is going to be as much uncertainty in 2021 as there was in 2020.We expect that many of the consumer behaviors we have seen over the last nine months will continue through most or all of this year.These
36、 trends include rural revitalization,trip consolidation,omni-channel adoption,a self-reliant lifestyle movement,consumer spending shifting from travel and entertainment to home and land,and all-time high pet ownership.We continue to have significant opportunities for growth.We participate in an attr
37、active,yet fragmented,total addressable market estimated to be about$110 billion.We have a track record of success and outperformance in this business.Our Life Out Here Strategy builds on our strong heritage,with investments to broaden our customer reach and increase our market share.We believe we a
38、re well-positioned to become an even more integral part of our customers lives.Our Life Out Here Strategy also positions us to strengthen and transform the Company.The five pillars of our Life Out Here Strategy are:1.Deliver Legendary Customer Service:Expand and deepen our customer base by providing
39、 personal,localized,and memorable customer engagements.2.Advance Our ONETractor Capabilities:Evolve our anytime,anywhere,any way customer experiences by digitizing our business processes and furthering our omni-channel capabilities.3.Operate the Tractor Way:Drive operational excellence and productiv
40、ity through continuous improvement,increasing space utilization,and implementing advanced supply chain capabilities.4.Go the Country 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 c
41、ustomers.5.Generate Healthy Shareholder Return:Allocate resources in a disciplined and efficient manner to drive profitable growth and build shareholder value.Tractor Supply has a bright past to build on as a foundation for what we believe will be an even brighter future.We see a unique opportunity
42、to continue benefiting from durable customer trends.Our goal is to make strategic investments that enable us to create an even greater competitive advantage,capture growth opportunities,and generate shareholder value.With the actions were taking,we are committed to emerging from the pandemic stronge
43、r than before.As the world continues to confront a monumental threat,I want to express my sincere appreciation and gratitude to the more than 42,000 Tractor Supply Team Members for how they have lived our Mission and Values and worked together to take care of each other and our customers.My thanks a
44、lso go out to our supply chain and vendor partners who have done an excellent job supporting our business.On my first day as CEO,I wrote that“it is a great time to be at Tractor Supply.”Today,I am even more convinced of that.Im excited about the work we are doing to realize our bright future-through
45、 a continued commitment to our customers and to each other.Thank you for your support and the confidence you have placed in Tractor SupplySincerely,Hal Lawton President and CEO4|Tractor Supply Company2020 Form 10-KTHIS PAGE INTENTIONALLY LEFT BLANKUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHI
46、NGTON,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 26,2020 orTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from_to_.Commission file
47、number 000-23314TRACTOR SUPPLY COMPANY(Exact name of registrant as specified in its charter)Delaware 13-3139732(State or Other Jurisdiction ofIncorporation or Organization)(I.R.S.Employer Identification No.)5401 Virginia Way,Brentwood,Tennessee 37027(Address of Principal Executive Offices)(Zip Code)
48、Registrants Telephone Number,Including Area Code:(615)440-4000Securities Registered Pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon Stock,$.008 par valueTSCONASDAQ Global Select MarketSecurities Registered Pursuant to Section 12
49、(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 check 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 whet
50、her 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 for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the pas
51、t 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 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 t
52、o 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 reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company
53、”and“emerging growth company”in Rule 12b-2 of the Exchange Act:Large accelerated filerAccelerated filer Non-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period fo
54、r 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 registrant has filed a report on and attestation to its managements assessment of effectiveness of its internal control over financial reporting
55、 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 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 hel
56、d by non-affiliates of the registrant,based on the closing price of the Common Stock on The NASDAQ Global Select Market on June 27,2020,the last business day of the registrants most recently completed second fiscal quarter,was approximately$12.6 billion.For purposes of this response,the registrant h
57、as assumed that its directors,executive officers,and beneficial owners of 5%or more of its Common Stock are affiliates of the registrant.Indicate the number of shares outstanding of each of the registrants classes of common stock as of the latest practicable date.Class Outstanding at January 23,2021
58、Common Stock,$.008 par value 116,301,841Documents Incorporated by Reference:Portions of the Registrants definitive Proxy Statement for its 2021 Annual Meeting of Stockholders are incorporated by reference into Part III hereof.Item no.Form 10-K Report PageForward-Looking StatementsiiPART I11.Business
59、11A.Risk Factors111B.Unresolved Staff Comments232.Properties243.Legal Proceedings254.Mine Safety Disclosures25PART II265.Market for Registrants Common Equity,Related Stockholder Matters,and Issuer Purchases of Equity Securities266.Selected Financial Data297.Managements Discussion and Analysis of Fin
60、ancial Condition and Results of Operations307A.Quantitative and Qualitative Disclosures About Market Risk458.Financial Statements and Supplementary Data469.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure799A.Controls and Procedures799B.Other Information80PART III
61、8010.Directors,Executive Officers,and Corporate Governance8011.Executive Compensation8012.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters8013.Certain Relationships and Related Transactions,and Director Independence8114.Principal Accountant Fees and Serv
62、ices81PART IV8115.Exhibits and Financial Statement Schedules8116.Form 10-K Summary81iFORWARD-LOOKING STATEMENTS OR INFORMATIONThis Form 10-K and statements included or incorporated by reference in this Form 10-K include certain historical and forward-looking information.The forward-looking statement
63、s included 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 developments that we expect or anticipate will or may occur in the future,including
64、 such things as future capital expenditures(including their amount and nature),business strategy,expansion,and growth of the business operations and other such matters are forward-looking statements.To take advantage of the safe harbor provided by the Act,we are identifying certain factors that coul
65、d cause actual results to differ materially from those expressed in any forward-looking statements,whether oral,or written.These factors include,without limitation,national,regional,and local economic conditions affecting consumer spending,including the effects of COVID-19,the effects that“shelter i
66、n place”or other similar mandated or suggested social distancing protocols could have on the business,the costs of doing business as a retailer during the COVID-19 pandemic,the effectiveness of the Companys responses to COVID-19 and customer response with respect to those actions,the effects of COVI
67、D-19 on our suppliers,business partners and supply chain,the timing and acceptance of new products,the timing and mix of goods sold,weather conditions,the seasonal nature of the business,the timing and mix of goods sold,purchase price volatility(including inflationary and deflationary pressures),the
68、 ability to increase sales at existing stores,the failure to realize anticipated benefits of our investments in technology,infrastructure,and digital and omni-channel capabilities,the ability to manage growth and identify suitable locations,failure of an acquisition to produce anticipated results,th
69、e ability to successfully manage expenses,particularly in light of COVID-19,including but not limited to,increases in wages,and execute key gross margin enhancing initiatives,increases in fuel,carrier and other transportation costs,increases in wages due to competitive pressures or minimum wage laws
70、 and regulations,the availability of favorable credit sources,capital market conditions in general,the ability to open new stores in the manner,timing and number currently contemplated,the impact of new stores on the business,competition,including competition from online retailers,effective merchand
71、ising initiatives and marketing emphasis,the ability to retain vendors,reliance on foreign suppliers,the ability to attract,train and retain qualified employees,the unionization or collective bargaining of employees,product liability and other claims,changes in federal,state or local regulations,pot
72、ential 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 the Companys information systems,failure to develop and implement new technologies,the failure of customer-
73、facing technology systems,business disruption including from the implementation of supply chain technologies,effective tax rate changes,including expected effects of the Tax Cuts and Jobs Act,and results of examination by taxing authorities,the imposition of tariffs on imported products or the disal
74、lowance of tax deductions on imported products,the ability to maintain an effective system of internal control over financial reporting,changes in accounting standards,assumptions and estimates,and those described in Item 1A.“Risk Factors.”Forward-looking statements are based on currently available
75、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-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.Ind
76、exPART IItem 1.BusinessOverviewTractor Supply Company(the“Company”or“we”or“our”or“us”)is the largest rural lifestyle retailer 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
77、to as the“Out Here”lifestyle),as well as tradesmen and small businesses.We operate retail stores under the names Tractor Supply Company,Dels Feed&Farm Supply,and Petsense.Our stores are located primarily in towns outlying major metropolitan markets and in rural communities.We also operate websites u
78、nder the names TractorS and P as well as a Tractor Supply Company mobile application.The Company has one reportable industry segment which is the retail sale of products that support the rural lifestyle.At December 26,2020,we operated 2,105 retail stores in 49 states(1,923 Tractor Supply and Dels re
79、tail stores and 182 Petsense retail stores).Our Tractor Supply stores typically range in size from 15,000 to 20,000 square feet of inside selling space,along with additional outside selling space,and our Petsense stores have approximately 5,500 square feet of inside selling space.For Tractor Supply
80、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 online selling websites and our mobile application are positioned to offer an extended assortment of products beyond those offered in-store and dr
81、ive 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 to allow our customers to engage with us anytime,anywhere and in any way they choose.Business Strategy for Tractor Supply Comp
82、any We believe our sales and earnings growth is the result of executing our business 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 those who enjoy living the rural
83、lifestyle,as well as tradesmen and small businesses.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
84、 many basic 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
85、 that primarily 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,as well as tradesmen and small businesses.Customer ServiceWe are committed to providing our custome
86、rs reliable product availability and a convenient,customer-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 every
87、day needs,as well as the specialty items needed to complete their rural lifestyle projects.In addition,our stores have been equipped with tools such as team member communication devices,wireless internet,and mobile point-of-sale devices that enable our team members to provide an enhanced shopping ex
88、perience to our customers.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 they choose,while delivering enhanced product information,research,and decision tools that suppo
89、rt 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 commitment to customer
90、 service promotes strong customer loyalty through personalized experiences and provides convenience that our customers expect,which drives repeat shopping experiences.Index1We use a third-party provider to survey and measure our level of customer service.This process allows customers to provide feed
91、back 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 based on th
92、at 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 layouts allow
93、 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.Our store layouts and visual displays are designed to provid
94、e our customers a feeling of familiarity and convenience to enhance the shopping experience.Informative 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
95、,clear pricing,useful information regarding product benefits,and suggestions for appropriate accessories.Also,our store team members wear highly visible red vests or aprons with nametags,and our customer service and checkout counters are conveniently located near the front of the store.Our stores ha
96、ve been equipped with tools such as team member communication devices,wireless internet,and mobile point-of-sale devices that enable our team members to provide an enhanced shopping experience to our customers.In addition,our buy online and pick up in-store program,including curbside pick up,provide
97、s convenient access for customers to pick up merchandise from our store locations.Merchandising and PurchasingWe offer an extensive assortment of products for all those seeking to enjoy the“Out Here”lifestyle,as well as tradesmen and small businesses.Our product assortment is tailored to meet the ne
98、eds 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 15,500 to 20,000 products per store as well as over 125,000 products online.No single product accounte
99、d for more than 10%of our sales during fiscal 2020.Our comprehensive selection of merchandise is comprised of the following major product categories:Equine,livestock,pet,and small animal products,including items necessary for their health,care,growth,and containment;Hardware,truck,towing,and tool pr
100、oducts;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.The following table indicates the percentage of net sales represented by each of our major product categories
101、 during fiscal 2020,2019,and 2018:Percent of Net SalesFiscal YearProduct Category:202020192018Livestock and Pet 47%47%47%Hardware,Tools and Truck 21 21 22 Seasonal,Gift and Toy Products 21 20 19 Clothing and Footwear 7 8 8 Agriculture 4 4 4 Total 100%100%100%Our buying team continuously reviews and
102、updates our product assortment 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 basis for their lifestyle and maintenance needs with emphasis on consumable,usable,and edible(“C.U.E.”)products.Examples of C.U.
103、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 heating,fertilizer,weed control,mulch,pest control,and twine.Index2Our products are sourced through both domestic and international vendors,each
104、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 from a group of approximately 975 vendors,with no one vendor representing more than 10%of our purchases during
105、 fiscal 2020.Approximately 375 core vendors accounted for 90%of our merchandise purchases during fiscal 2020.We have not experienced any significant difficulty in obtaining satisfactory alternative sources of supply for our products,and we believe that adequate sources of supply exist at substantial
106、ly similar costs for nearly all of our products.We have no material long-term contractual commitments with any of our product vendors.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 th
107、at focuses exclusively on forecasting and inventory replenishment,a committed merchandise 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 f
108、ocus on improving our overall inventory productivity and in-stock inventory position.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 S
109、upply Co.,and the trapezium design for retail services.We consider these service marks,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
110、 which are the subject of applications for registration pending before the USPTO.In 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 exclusiv
111、e brands are manufactured for us by a number of vendors and provide an alternative to the national brands,which helps provide value for our customers and positions us as a destination retailer.Our exclusive brands represented approximately 29%of our total sales in fiscal 2020 and 31%of our total sal
112、es in fiscal 2019 and 2018,respectively.Our exclusive brands include:4health(pet foods and 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(he
113、ating products)Blue Mountain(apparel)Retriever(pet foods and supplies)C.E.Schmidt(apparel and 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)Trav
114、eller(truck and automotive products)Huskee(outdoor power equipment)Treeline(hunting gear and 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
115、trademarks with the USPTO for certain products and some are the subject of additional applications 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 appro
116、priate maintenance and renewal documentation with the USPTO in a timely manner,the registrations 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 a
117、nd ranch equipment,as well as light systems for trucks and other vehicles.Index3We believe our intellectual property,which includes the trademarks and service marks identified above,together with certain tradenames,domain names,patents,and copyrights,has significant value and is an important compone
118、nt of our merchandising and marketing strategies.DistributionWe currently operate a distribution facility network for supplying stores with merchandise and delivering product ordered through our websites and mobile application.In fiscal 2020,our Tractor Supply stores received approximately 75%of mer
119、chandise through this network while the remaining merchandise shipped directly from our vendors 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 so
120、lutions by enhancing in-stock inventory positions,while minimizing freight expense and improving 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 milli
121、on square feet.We also use third-party operated import centers and mixing centers which provide additional distribution capacity.On December 7,2020,the Company announced plans to build a new distribution center in Navarre,Ohio.The new distribution center is expected to be approximately 895,000 squar
122、e feet.Construction is planned to begin in fiscal 2021 and is currently anticipated to be complete by the end of fiscal 2022.We select the locations of our distribution facilities in an effort to minimize logistics costs and optimize the distance from distribution facilities to our stores.Our distri
123、bution centers utilize warehouse and labor management tools that support the planning,control,and processing of inventory.We manage our inbound and outbound transportation activity in-house through the use of a transportation management system.We utilize multiple common carriers for store and direct
124、 to customer deliveries.We manage our transportation costs through carrier negotiations,monitoring of transportation routes,and scheduling of deliveries.MarketingWe utilize an“everyday value price”philosophy to consistently offer our products at competitive prices complemented by strategically plann
125、ed promotions throughout the year.To drive store traffic and position ourselves as a destination retailer,we promote a broad selection of merchandise through various digital and social media initiatives,television,newspaper circulars,and customer-targeted direct e-mail and direct mail,as well as lim
126、ited use of radio and other media channels.In addition,our Neighbors Club loyalty program enhances our ability to create engagement with our best customers.Vendors frequently support these specific programs by offering temporary cost reductions and honoring coupons.Our vendors also provide assistanc
127、e with product presentation and fixture design,brochures,support 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,o
128、n our website,on our mobile application,or via our Customer 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
129、is most convenient for them.Our focus is on delivering a comprehensive mobile experience while maintaining a straight-forward shopping experience to further offer the convenience our customers need.We offer a buy online and pick up in-store program,including curbside pick up,which provides convenien
130、t access for customers to pick up merchandise from our store locations.Additionally,our online experience offers 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
131、 relevant to our customers lifestyle.We provide our customers the ability to have products shipped directly to our retail store locations or to their homes or offices.We use our distribution facility network to support our e-commerce activities.Our digital capabilities have further enhanced our in-s
132、tore shopping and customer service experience,allowed us to engage with our customers anytime,anywhere,and in any way they choose,and expanded our target markets outside of our current retail store locations.Index4Continuous ImprovementWe are committed to a continuous improvement program to drive ch
133、ange throughout our organization.Using data analytics and team member engagement,we examine business processes and identify opportunities to reduce costs,drive innovation,and improve effectiveness.We have implemented numerous continuous improvement projects,with team members from multiple areas of o
134、ur business,to evaluate key operations 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 ou
135、r team members,and incorporates suggestions 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.
136、This includes use of digital 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
137、 system;In-store mobility;E-commerce platform;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 syst
138、em;Business intelligence and analytics tools;and Customer loyalty 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 continue to invest in te
139、chnology 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 their effectiveness.Such
140、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-store mobility,labor managem
141、ent 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 information systems to h
142、elp protect and prevent unauthorized access to personal information of our customers,employees,vendors,and other confidential Company data as well as endeavoring to adhere to industry privacy laws and standards.Areas of focus include cloud,end point protection and privacy.Collectively,these efforts
143、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 pet owners,primarily in small and mid-sized com
144、munities,and offering a variety of pet products and services.At December 26,2020,we operated a total of 182 Petsense stores in 25 states,with approximately 500 full-time and 1,000 part-time team members,and an e-commerce website(P).Petsense owns a registered trademark for its exclusive brand,TrueSou
145、rce pet food,and the Petsense name is registered with the USPTO.Index5Human CapitalWe believe that our team members are the foundation of our business and that their hard work drives our success.As a result of our commitment to our team members,we were recognized by the Great Place to Work Institute
146、 as a Great Place to Work-Certified company.Below are further descriptions of our Company and our focus on the development and support of our team members:Management and Team MembersAs of December 26,2020,we employed approximately 20,000 full-time and 21,000 part-time Tractor Supply team members.We
147、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 are organized into regions,each of which is led by a regional vice president.The region is further organized into dist
148、ricts,each of which is led by a district manager.We have two internal 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 solu
149、tions.All of our team members participate in one of our various bonus incentive programs,which provide the opportunity to receive additional compensation based upon team and/or Company performance.In addition to bonus incentive programs,we provide our eligible team members the opportunity to partici
150、pate in an employee stock purchase plan and a 401(k)retirement savings plan.We also share in the cost of health insurance provided to eligible team members,and team members receive a discount on merchandise purchased from the Company.We additionally provide our team members with paid time off and a
151、six-week parental leave policy for new parents.We encourage a promote-from-within 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 district managers a
152、nd store managers have an average tenure of approximately nine and six years,respectively.We believe internal promotions,coupled with the hiring of individuals with previous retail experience,will provide the management structure necessary to support our long-term strategic growth initiatives.Store
153、Personnel and TrainingWe seek to hire store team members who live and appreciate 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 member
154、s and devote considerable resources to training store team members,often in cooperation 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 C
155、ompany policies and procedures covering topics such as harassment,discrimination,and retaliation;Diversity and Inclusion training which is intended to advance a diverse and inclusive culture built on our core value of Respect,to foster different perspectives,ideas and innovative thinking;New store o
156、pening training that prepares our store managers to open new stores to 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;Onlin
157、e product knowledge training produced in conjunction with key vendors;Leadership development programs that prepare leaders to expand their current contributions;andAn annual store manager meeting with vendor product presentations.COVID-19 ResponseThe Company has been and continues to closely monitor
158、 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 chain networks.Index6The health and safety of our team members and customers are the primary concerns of our management team.We hav
159、e taken and continue to take numerous actions to promote health and safety,including,providing personal protective equipment to our team members,establishing mask protocols in our facilities,rolling out additional functionality to support contactless shopping experiences,adding services for cleaning
160、 and sanitation in our stores and distribution centers,hiring additional team members to assist in promoting social distancing and cleaning actions in our stores,and implementing remote work plans at our store support center.Additionally,we have taken significant actions to support our team members
161、during this pandemic including COVID-19 paid medical leave,100%coverage of COVID-19 testing and treatment under our medical plan,and the payment of incremental appreciation bonuses for frontline team members of approximately$44 million in fiscal 2020.Effective June 28,2020,we implemented permanent w
162、age increases for all of our hourly team members in our stores and distribution centers of a minimum of$1 per hour and are now providing a new benefit package for part-time team members,including medical,vision and dental coverage,behavioral health services,paid sick time and life insurance.We have
163、also implemented annual restricted stock unit grants to more than 2,000 frontline salaried managers in our stores and distribution centers.Diversity,Equity and InclusionTractor Supply is committed to the principles of diversity,equity and inclusion.We have built a strong and diverse team by purposef
164、ully seeking highly qualified diverse candidates with different backgrounds,perspectives,ideas and skill sets.As we move forward,we are working to implement new diversity,equity and inclusion initiatives that will result in an even more diverse team across the entire company.We are committed to prov
165、iding a diverse and inclusive culture supported by our Mission&Values where we respectfully foster different perspectives,ideas and innovative thinking.We know that together we are better,and we believe in the authenticity our team members bring to work every day.By focusing on our team members,we k
166、now that our customers and communities 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.Minorities comprise approximately 17%of our workforce.Women serve in several key leadership roles including Executive
167、 Vice President,Chief Human Resources Officer,Senior Vice President,General Counsel and Corporate Secretary,Senior Vice President of Investor Relations and Public Relations,Senior Vice President of Marketing and Senior Vice President of E-Commerce.We have taken several steps over the past 18 months
168、to further enhance our diversity including the hiring of a diversity,equity and inclusion officer,Company-wide training,formation of a diversity,equity and inclusion council composed of executive leaders and establishment of numerous team member engagement groups supporting the development,community
169、 involvement and allyship within our Company.We will continue to build on these initiatives 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 suppli
170、er of Out Here lifestyle solutions,creating customer loyalty through personalized experiences,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,
171、and memorable customer engagements by leveraging 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 servi
172、ces across all channels through exclusive and national brands and continue to introduce 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 ca
173、pabilities 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
174、)connecting,empowering and growing our team to enhance their lives and the communities they live in,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 shareholder value,including leveraging
175、 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 11.3%.We plan to open approximat
176、ely 80 new Tractor Supply and 10 new Petsense stores in fiscal 2021,a selling square footage increase of approximately 4%.In fiscal 2020,we opened 80 new Tractor Supply stores and nine new Index7Petsense stores.In fiscal 2019,we opened 80 new Tractor Supply stores and eight new Petsense stores.This
177、represents a selling square footage increase of approximately 4%during each of fiscal 2020 and fiscal 2019.At December 26,2020,we operated 2,105 retail stores in 49 states(1,923 Tractor Supply and Dels retail stores and 182 Petsense retail stores).Given the size of the communities that we target,we
178、believe that there is ample opportunity for new store growth in many existing and new markets.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 opportunity for continued
179、growth for Petsense stores.Approximately 56%of our stores are in freestanding buildings and 44%are located in shopping centers.We lease approximately 95%of our stores and own the remaining 5%.In addition to new store expansion,we also plan to further support our strategic growth through expansion of
180、 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-channel capabilit
181、ies to better serve our customers.CompetitionWe operate in a competitive retail industry.The principal competitive factors include location of stores,fulfillment options,price,quality of merchandise,in-stock inventory consistency,merchandise assortment and presentation,product knowledge,online compe
182、titors,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-based retailers
183、.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 WeatherOur busine
184、ss 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 support the
185、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 to the fact
186、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 and winter m
187、onths 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 droughts have im
188、pacted 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.Furthermore,we are not able to predict at this tim
189、e the impact that the COVID-19 pandemic may have on the seasonality of our business in the future.Index8Stewardship and Compliance with Environmental MattersOur operations are subject to numerous federal,state,and local laws and regulations,enacted or adopted,regulating the discharge of materials in
190、to the environment or otherwise relating to the protection of the environment.We are committed to complying with all applicable environmental laws and regulations.We are also committed to becoming a more environmentally sustainable company.This commitment is demonstrated through our Stewardship Prog
191、ram,which is our environmental sustainability program.Through this program,the Company has implemented a number of initiatives designed to reduce our impact on the environment.These initiatives include the installation of energy management systems,LED lighting,high efficiency heating/air conditionin
192、g systems,and recycling programs in our stores,distribution facilities,and Store Support Center.Our Store Support Center and our distribution centers in Casa Grande,Arizona,and Frankfort,New York,are LEED(Leadership in Energy and Environmental Design)Silver certified for environmentally sustainable
193、design,construction,and operation.We also installed solar arrays at the Store Support Center in Brentwood,Tennessee,and our Tractor Supply store in Hendersonville,Tennessee.The Company has been a SmartWay Transport partner since 2013.SmartWay Transport is a public-private initiative between the U.S.
194、Environmental Protection Agency,large and small trucking companies,retailers,and other federal and state agencies.Its purpose is to improve fuel efficiency and the environmental performance(reduction of both greenhouse gas emissions and air pollution)of supply chains.In December 2018,we announced a
195、goal to reduce carbon emissions from our facilities by 25%by 2025 from our 2015 baseline as part of the Companys Stewardship Program.In December 2020,we announced that we had reached this goal five years early.Additionally in 2020,we released our inaugural report in response to the Task Force on Cli
196、mate-related Financial Disclosures,announced our commitment to increasing our level of renewable energy purchased for electric consumption,and that the Company is partnering with various utility companies to purchase solar energy for select store locations and to participate in community solar progr
197、ams.Additional information can be found in our annual sustainability report on our website(TractorS).Information about our Executive OfficersPursuant 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 t
198、he Annual Meeting of Stockholders to be held on May 6,2021.The following is a list of the names and ages of all executive officers of the registrant,indicating all positions and offices with the registrant held by each such person and each persons principal occupations and employment during at least
199、 the past five years:NamePositionAgeHarry A.Lawton,IIIPresident and Chief Executive Officer46Kurt D.BartonExecutive Vice President Chief Financial Officer and Treasurer49Robert D.MillsExecutive Vice President Chief Technology,Digital Commerce and Strategy 48John P.OrdusExecutive Vice President Chief
200、 Stores Officer45Jonathan S.EstepExecutive Vice President Chief Merchandising Officer41Melissa D.KerseyExecutive Vice President Chief Human Resources Officer46Colin W.YankeeExecutive Vice President Chief Supply Chain Officer43Noni L.EllisonSenior Vice President General Counsel and Corporate Secretar
201、y49Christi C.KorzekwaSenior Vice President Marketing55Matthew L.RubinSenior Vice President and General Manager of Petsense41Harry 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.Pri
202、or to that time,Mr.Lawton served as Senior Vice President,North America at eBay,Inc.since May 2015.Mr.Lawton previously held 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 201
203、9,Mr.Lawton has served as a director of Sealed Air Corporation and previously served as a director of Buffalo Wild Wings,Inc.from October 2016 to February 2018.Index9Kurt D.Barton was promoted to Executive Vice President Chief Financial Officer and Treasurer in February 2019,after having served as S
204、enior Vice President Chief Financial Officer and Treasurer since March 2017.Prior to that time,Mr.Barton served as Senior Vice President Controller of the Company since February 2016.Mr.Barton previously served as Vice President Controller from February 2009,after having served as Director,Internal
205、Audit from July 2002 to February 2009.Mr.Barton has served in various other leadership roles in accounting 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 Exec
206、utive Vice President Chief Technology,Digital Commerce and Strategy Officer since August 2018,prior to which he served as Senior Vice President Chief Information Officer since February 2014.Mr.Mills previously served as Chief Information Officer for Ulta Beauty from October 2011,until he joined the
207、Company.From 2005 to 2011,Mr.Mills was Vice President,Chief Information Officer for 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 Allstate Insurance,Rockwell International T
208、elecommunications Division,and Household Finance Corporation.Since March 2018,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 Senior Vice President-Store Operations since August 2015
209、.Prior to that time,Mr.Ordus served the Company as Regional Vice President 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 and Fleet with which Mr.Ordus held roles
210、since January 1988.Jonathan S.Estep was promoted to Executive Vice President Chief Merchandising Officer in February 2020,after having served as the Senior Vice President,General Merchandising since April 2017.Prior to that time,Mr.Estep served the Company as a Vice President,Divisional Merchandise
211、Manager from February 2014.Mr.Estep also previously served in various other leadership roles in merchandising since he re-joined the Company in January 2008.Melissa D.Kersey was appointed as Executive Vice President Chief Human Resources Officer on July 20,2020.Ms.Kersey was previously Senior Vice P
212、resident and Chief People Officer for McDonalds USA from 2017 until July 2020.Ms.Kersey also previously held a number of executive level roles with Walmart from 2008 to 2017,including Senior Vice President of Global Human Resource Transformation and People Services,Senior Vice President and Chief Hu
213、man 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 and four years with the Target Corporation in Operations,Distribution,Human Resources and Technology roles.Colin W.Yankee was promoted to
214、 Executive Vice President-Chief Supply Chain Officer in February 2020,after having served as Senior Vice President,Supply Chain since November 2015 when he joined the Company.Mr.Yankee was previously Vice President of Logistics for Neiman Marcus from 2013 to 2015.Prior to that time,Mr.Yankee held va
215、rious 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 11,2021.Ms.Ellison was previ
216、ously General Counsel,Chief Compliance Officer and Corporate Secretary for Carestream Dental 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 until July 2017.Prior to that time,
217、Ms.Ellison held roles of increasing responsibility at Turner Broadcasting System,Inc.and Scripps Networks and practiced law with two national law firms as a corporate finance and securities associate.Christi C.Korzekwa has served as Senior Vice President Marketing since February 2015,having previous
218、ly 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,Director of Client Services for Blue Sky Agency.She worked for Home Depot,Inc.from 2004 to 2011 in roles of increasing importance in marketing
219、and advertising,most recently as Senior Director,Marketing.Before joining Home Depot,Ms.Korzekwa spent 17 years with TM Advertising,most recently serving as their Senior Vice President,Global Media Director.Index10Matthew L.Rubin was appointed Senior Vice President and General Manager of Petsense on
220、 February 1,2021.Mr.Rubin previously served as Senior Vice President of Business Development&Growth at The Michaels Companies from October 2018 until January 2021.Mr.Rubin was previously an executive in Accenture Strategys North America Retail Practice from April 2015 to October 2018.Before April 20
221、15,Mr.Rubin was a Partner at Consolidated Venture Partners&Consolidated Marketing and a Co-Founder&Finance Partner at OnTrend Products.Mr.Rubin also previously served as Vice President of Specialty Business Operations at BJs Wholesale Club.Mr.Rubin began his career at Office Depot where he had multi
222、ple merchandising and strategic project leadership roles of increasing responsibility.Additional InformationWe file reports with the Securities and 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 require
223、d.We are an electronic filer and the SEC maintains an Internet website at sec.gov that contains the reports,proxy and information statements,and 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 1
224、0-Q,current reports on Form 8-K,and all amendments to those reports as soon as reasonably practicable after such material is electronically filed 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
225、 information is otherwise specifically referenced elsewhere in this report.Item 1A.Risk FactorsOur business faces many risks.Certain risks 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,o
226、ur business,financial condition or results of operations may significantly suffer,and the trading price of our common stock could decline.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 cou
227、ld 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 of 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 fo
228、r expanding our business.Maintaining,promoting,and positioning our brand will depend largely on the success of our marketing and merchandising efforts and our ability to provide high quality merchandise and a consistent,high quality customer experience.Our brand could be adversely affected if we fai
229、l to achieve these objectives or if our public image or reputation were to be tarnished by negative publicity.Failure to comply or accusation of failure to comply with ethical,social,product,labor,data privacy,and environmental standards could also jeopardize our reputation and potentially lead to v
230、arious adverse consumer actions.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 comparable store sales at our existing stores,defined as sales in stores which
231、have been open for at least twelve months.Various factors affect the comparable store sales at our existing stores,including,among others,the general retail sales environment,our ability to efficiently source and distribute products,changes in our merchandise assortment,competition,proximity of our
232、locations to one another or to the locations of 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,weathe
233、r conditions,and our ability to attract and retain 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
234、be no assurance that our comparable store sales will not decrease in the future.Furthermore,the significant positive impact of the COVID-19 pandemic on the demand for our products in fiscal 2020 resulted in a significant increase in new or reacquired customers and in comparable store sales growth.Ou
235、r sales performance in fiscal 2020 may present a greater risk to our ability to increase comparable store sales in the following year(s)and in our ability to Index11maintain our new or reacquired customers gained in fiscal 2020.Therefore,we may not be able to sustain or increase our comparable store
236、 sales in fiscal 2021 and beyond.Failure 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 strateg
237、y is dependent on our ability to find 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
238、 unable to open new stores in the manner we anticipate(due to,among other reasons,site approval or unforeseen delays in construction),our sales growth may be impeded.As we execute this expansion strategy,we may also experience managerial or operational challenges which may prevent any expected incre
239、ase in sales,profitability,or cash flow.Our ability to manage our planned expansion depends on the adequacy of our existing 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 ef
240、fectiveness of our controls and procedures,and the ability to identify customer demand and build market awareness in different 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 operati
241、ons or that such stores will be profitable.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 incremental sales and profitability for the Company.New stores build their sales volumes and re
242、fine their merchandise selection over time and,as a result,generally have lower gross margins and higher operating expenses as a percentage of net sales than our more mature stores.As we continue to open new stores,there may be a negative impact on our results from a lower contribution margin of the
243、se 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 existing stores located in close proximity.Our merchandising and marketing initiatives may not
244、provide expected results.We believe 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 result
245、s,and there is no assurance that we will correctly identify and respond in a timely manner to evolving trends and consumer preferences and expectations.Further,adverse publicity about our merchandise products,whether valid or not,may discourage consumers from buying the products we offer.If we misju
246、dge 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 that have a material adverse effect on our profitability.Failure to execute and promote such initiatives in a timely manner could harm
247、 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 also have a material adverse effect on our financial condition and results of operations.Competition may hinder our ability to execute ou
248、r business strategy and adversely affect our operations.We operate in the highly competitive retail merchandise sector with numerous competitors.These competitors include general merchandise retailers,home center retailers,pet retailers,specialty and discount retailers,independently-owned retail far
249、m and ranch stores,numerous privately-held regional farm store chains,and farm cooperatives,as well as internet-based retailers.We compete for customers,merchandise,real estate locations,and employees.This competitive environment subjects us to various other risks,including the inability to continue
250、 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 compete effectively in this environment could adversely impact our financial performance.We may pursue strategic acquisitions and the fa
251、ilure 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 may,from time to time,acquire businesses we believe to be complementary to our business.The success of an acquisition is based on our
252、ability to make accurate assumptions regarding the valuation,operations,growth 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 attenti
253、on from other business issues and opportunities.We may not Index12be able to successfully 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 experien
254、ce increased costs associated with operating inefficiencies which could have an adverse effect on our financial results.Also,while we employ several different methodologies to assess potential business opportunities,the new businesses may not meet our expectations and,therefore,adversely affect our
255、financial performance.Additionally,acquired businesses may not achieve desired profitability objectives,causing lower than expected earnings and cash flows which could subsequently require impairment of long-lived assets,goodwill and other intangible assets.Weather and Climate RisksWeather condition
256、s may have a significant impact on our financial results.Weather conditions affect the demand for,and in some cases the supply 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 wea
257、ther in the spring and summer months,have 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,fires and droughts,have impacted operating results.While extrem
258、e 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 a result of stor
259、e 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 strategy not be effectiv
260、e,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 distribution and transportat
261、ion 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 stores or customers b
262、y 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 droughts may result in d
263、elays 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 material adverse impa
264、ct on our financial condition and results of operations.Factors associated with climate change could adversely affect our business.We use natural gas,diesel fuel,gasoline and electricity in conducting our operations.Increased government regulations to limit carbon dioxide and other greenhouse gas em
265、issions may result in increased compliance costs and legislation or regulation affecting energy inputs,which could materially affect our profitability.Further,climate change could affect our ability to procure needed commodities at costs and in the quantities that we currently expect.Additionally,cl
266、imate change may be associated with extreme weather conditions,such as more frequent or intense hurricanes,thunderstorms,tornadoes,floods,fire,drought,and snow or ice storms,as well as rising sea levels,all of which may negatively impact our business and have a material adverse effect on our financi
267、al condition and results of operations.Macroeconomic RisksGeneral economic conditions may adversely affect our financial performance.Our results of operations may be sensitive to changes in overall economic conditions that impact consumer spending,including discretionary spending.A weakening of econ
268、omic conditions affecting disposable consumer income such as lower employment levels,uncertainty or changes in business or political conditions,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,g
269、eneral health epidemics,and other matters could reduce consumer spending or cause consumers to shift their 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 profi
270、table products sold by us could result in lower net sales,slower inventory turnover,greater markdowns on inventory,and a reduction in profitability due to lower margins.Index13Purchase price volatility,including inflationary and deflationary pressures,may adversely affect our financial performance.A
271、lthough we cannot determine the full effect of inflation and deflation on our operations,we believe our sales 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,pet
272、roleum,cotton,and other commodities,as well as duties,tariffs,diesel fuel,and transportation services.Therefore,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
273、the effects of purchase price volatility principally by taking advantage of vendor incentive programs,economies 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 mitiga
274、te purchase price volatility not be effective,our financial performance could be adversely impacted.Team 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.
275、Our ability to maintain and continue expanding operations depends on our ability to attract and retain 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 availabilit
276、y of a sufficient number of qualified persons in the work force,unemployment levels,prevailing wage rates,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 o
277、r union activities.If we are unable to locate,attract or retain qualified personnel,or if costs of labor 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.
278、These laws cover wage and hour practices,labor relations,paid and family leave,workplace safety and immigration,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 pra
279、ctices to comply with these various laws and regulations.If our costs of labor or related costs increase 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
280、our senior management team and other key team members or the failure to successfully manage an executive 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
281、 team members.Competition for senior management and key team members in our industry is strong and we may 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 o
282、ur current business and to execute our long-term strategic growth initiatives.The loss of any of our executive 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 attenti
283、on to seeking qualified replacements.Additionally,any failure by us to manage a successful leadership transition 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 T
284、hird-Party Vendor RisksWe face risks associated with vendors from whom our products are sourced.The products 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 envi
285、ronmental laws,and to indemnify us against certain liabilities and costs.Our ability to recover liabilities 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 lon
286、g-term contracts with such suppliers.Our future success will depend in large measure upon our ability to 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,h
287、ealth(including,but not limited to,the COVID-19 coronavirus),or environmental conditions,transportation delays,or changes in laws and regulations affecting distribution.Our Index14vendors may be forced to reduce their production,shut down their operations or file for bankruptcy protection,which coul
288、d make it difficult for us to serve the markets needs and could have a material adverse effect on our business.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
289、,or issues associated with their products or workforce,including customer or governmental complaints,breakdowns 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
290、 the Company to litigation and adversely affect the Companys ability to deliver products and services to its customers 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 do
291、mestic suppliers purchase a portion of their products from foreign sources.As an importer,our business is subject to the risks generally associated with doing business internationally,such as domestic and foreign governmental regulations,economic disruptions,global or regional health epidemics,delay
292、s in shipments,transportation capacity and costs,currency exchange rates,and changes in political or economic 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.quo
293、tas,duties,tariffs,taxes,or other charges or restrictions were imposed upon the importation of our products 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 pol
294、icies,tariffs and regulations affecting trade between the U.S.and other countries.We source a portion of 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 fo
295、r imported merchandise or the imposition of tariffs on imported products,could have a material adverse 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
296、 purchased merchandise is manufactured abroad.Our business may be materially adversely affected by risks associated with international trade,including the impact of tariffs(imposed and potential)by the U.S.with respect to certain consumer goods imported from China.We source a portion of our merchand
297、ise from manufacturers located outside the U.S.,primarily in Asia and Central America,and many of our domestic 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 importe
298、d products has increased our costs and could result in reduced sales and profits.In addition,the imposition of tariffs by the U.S.has resulted in the adoption of tariffs 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
299、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.S.industries and consumers and could negatively impact the consumer demand for products that we sell.We continue to evaluate the impact
300、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 negotiating with our vendors,seeking alternative sourcing options,and adjusting retail selling prices.Given the uncertainty regarding the scope
301、 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,results of operations,and financial condition is uncertain but could be significant.Thus,we can provide no assurance that any strategies w
302、e implement to mitigate the impact of such tariffs or other trade actions will be successful in whole or in part in mitigating the impact of any current or future tariffs.To the extent that our supply chain,costs,sales,or profitability are negatively affected by the tariffs or other trade actions,ou
303、r 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 increase our transportation costs,which would decrease our profits.We rely on our d
304、istribution 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 from the distribution facilities or direct ship vendors to our stores or custo
305、mers 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,unexpected delivery delays(including delays due to weather,fuel shortages,work
306、stoppages,global or regional health epidemics,product shortages from vendors,or other reasons)or increases in transportation Index15costs(including increased fuel costs or a decrease in transportation capacity for overseas shipments)could significantly decrease our ability to provide adequate produc
307、ts for sale,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 disruptions to the national and international transportation infrastructure that lead to delays or interruptions of deliveri
308、es 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 merchandise to our stores which could adversely affect our business.The implementation of our supply chain initiatives cou
309、ld 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 distribution facilities and expand existing facilities to support our long-term strategic growth init
310、iatives.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 turn reduce revenue growth.In addition,distribution-related construction or expansion projects enta
311、il 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 geological problems;weather interference;fires or other casualty losses;and unanticipated cost increases.The
312、 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 completed on time or within established budgets.We continue to make significant technology investments
313、 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 in a timely manner and at a reasonable cost.The cost and potential problems and interruptions asso
314、ciated 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 efficiency of our operations in the near term.In addition,our improved supply chain technology might n
315、ot provide the anticipated benefits,it might take longer than expected to realize the anticipated benefits,or the initiatives might fail altogether.We face risks from our use of service providers or other third-parties whom we rely upon for conducting our business.The Company is dependent upon numer
316、ous service providers and other third-parties to conduct our business,including e-commerce among others.While the Company selects these third-party vendors carefully,it does not control their actions.Any failure of these third-parties to provide the expected or agreed-upon level of service in a time
317、ly manner for any reason could adversely affect the Companys ability to deliver products and services to its customers and otherwise conduct its business.Further,our reputation or brand could be adversely impacted by the actions of these third-parties.Technology,Data Security,Business Continuity and
318、 Disaster Recovery RisksAny failure to maintain the security of the information relating to our business,customers,employees,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 sub
319、stantial 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
320、 most retailers,we receive and store in our information systems certain personal and other sensitive information about our business,customers,employees,and vendors.Additionally,we also receive and process information permitting cashless payments as part of our in-store and online operations at Tract
321、orS 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,cyber incidents and privacy regulations,which are occurring more frequently,a
322、re constantly evolving 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 continuously monitor our information technology networks and infrastructure in
323、an effort to prevent,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
324、to every such breach or disruption and/or preventing the misuse of confidential information of our business,customers,employees,or vendors.Similar risks exist with respect to the third-party vendors that we rely upon for aspects of our information technology support services and administrative funct
325、ions,even if the attack or breach does not directly impact our systems or information.Index16A 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 una
326、uthorized or improper 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
327、,financial condition,and liquidity,and could result in significant legal and financial exposure beyond the scope or limits of insurance coverage.Moreover,a security breach could require that we expend significant additional resources to respond to the attack or breach and could result in a disruptio
328、n of our operations.In addition,states and the federal government are increasingly enacting laws and regulations relating to privacy,data breaches,and theft of employee and customer data.These laws will likely increase the costs of doing business and,if we fail to comply with these laws and regulati
329、ons,to implement appropriate safeguards,or to detect and provide prompt notice of unauthorized access as required by some of these new laws,we could be subject to potential claims for damages and other remedies,which could harm our business.We are subject to payments-related risks that could increas
330、e our operating costs,expose us to fraud,subject us to potential liability,and potentially disrupt our business.We accept payments using a variety of methods,including credit cards,debit cards,credit accounts,our private label credit cards,gift cards,direct debit from a customers bank account,consum
331、er invoicing,and physical bank checks,and we may offer different payment options over time.These payment options subject us to many compliance requirements,including,but not limited to,compliance with payment card association operating rules,including data security rules,certification requirements,r
332、ules governing electronic funds transfers,and Payment Card Industry Data Security Standards.They also subject us to potential fraud by criminal elements seeking to discover and take advantage of security vulnerabilities that may exist in some of these payment systems.For certain payment methods,incl
333、uding credit and debit cards,we pay interchange and other fees,which may increase over time and raise our operating costs and lower profitability.We rely on third parties to provide payment processing services,including the processing of credit cards,debit cards,electronic checks,gift cards and promotional financing,and it could disrupt our business if these companies become unwilling or unable to
0731-84720580
sgpjbg002
工作日 9:30 - 18:00
研報
新質生產力
DeepSeek?
低空經濟
大模型
AI Agent
AI Infra
具身智能
自動駕駛
寵物
銀發經濟
人形機器人
企業出海
算力
微短劇
薪酬
白皮書
創新藥
人工智能
AI產業
信息科技
互聯網
消費經濟
汽車交通
電商零售
傳媒娛樂
醫藥健康
投資金融
能源環境
地產建筑
傳統產業
英文報告
其它
最新報告
中英對照
全文搜索
報告精選
PDF上傳翻譯
多格式文檔互轉
入駐&報告售賣
會員權益
機構報告
券商研報
財報庫
專題合集
英文報告
數據圖表
會議報告
其他資源
行業聚焦
芯片產業
熱點概念
全球咨詢智庫
人工智能
500強
新質生產力
會議峰會
新能源汽車
企業年報
互聯網
公司研究
行業綜觀
消費教育
科技通信
醫藥健康
人力資源
投資金融
汽車產業
物流地產
電子商務
傳統產業
傳媒營銷
其它
2025低空經濟/低空產業報告合集（共49套打包）
2025年智算中心/AIDC/AI數據中心研究報告合集（共37套打包）
AI、科技與通信
廣告、傳媒與營銷
消費、零售與支付
HR、文化與旅游
金融、保險與投資
能源、環境與工業
醫療制藥與大健康
物流、地產與建筑
其他行業
AI ? 科技 ? 通信
數字化
金融財經
智能制造
電商傳媒
地產建筑
醫療醫學
能源化工
其他行業
收藏
下載
2025-05-20
AI查數
行業數據
政策法規
商業模式
產業鏈
競爭格局
市場規模
產業概述
其它
2025年
AI讀財報
年報
一季報
半年報
三季報
IPO招股書
社會責任報告
A股
IPO申報
港股
美股&全球
新三板
掃碼登錄
手機快捷登錄
賬號登錄
