Northwest provides fertile ground for farm stores

Published 7:00 am Thursday, June 20, 2024

A healthy crop of farm stores is proliferating throughout the Northwest, sprouting from fertile ground in both rural and urban environments.

“In a lot of people’s minds, a farm store is a very small location in a very small town. That isn’t the case anymore,” said Jake Wilson, Wilco’s vice president of marketing and e-commerce.

Farm stores succeed everywhere, from big cities like Boise, population 235,000, to towns with less than 10,000 people. And these locations can be as big as supermarkets.

Regional brands Wilco Farm Stores and Coastal Farm & Ranch and smaller chains such as Grange Co-op and D&B Supply all are growing strong. They’ve been joined in recent years by Bi-Mart spinoff Cascade Farm and Outdoor and industry behemoth Tractor Supply Co.

Experts said farm store expansion stems from factors including the wide range of products they carry, shared values with customers, the pandemic spurring self-reliance and the allure of the country lifestyle.

Regardless of the reasons, “It’s very visible what’s going on,” Wilson said.

Wilco opened its 26th location in April in Eugene. A decade ago, the farmer-owned cooperative had 15 stores in Oregon, Washington and California.

Coastal Farm & Ranch, which operates in Oregon, Washington and California, had 15 stores in 2014 and now has 21.

Tractor Supply Co., the nation’s largest farm lifestyle chain, had more than 2,230 stores at the end of March, as well as 200 Petsense by Tractor Supply locations. That’s up from about 1,000 stores in 2010.

The Pacific Northwest was one of its last frontiers for expansion in the U.S., experts said. In the first quarter of 2024, Tractor Supply sales rose 2.9% to $3.4 billion, driven mostly by new store openings.

“Our long-term growth target is 3,000 stores in the U.S.,” said Mary Winn Pilkington, Tractor Supply’s senior vice president of investor relations and public relations.

Grange Co-op, with seven locations in Southern Oregon and Northern California, and D&B Supply, with 15 locations in Idaho and Eastern Oregon, haven’t grown as rapidly but are also expanding with new and larger stores.

Both recently opened distribution centers to maintain inventory and supply crucial items customers need most.

Cascade Farm and Outdoor, the Bi-Mart offshoot, opened its fifth store in April in Springfield, Ore.

It had one location a decade ago, and can tap into the existing infrastructure of Bi-Mart, a regional discount store chain.

Coastal and Bi-Mart didn’t respond to requests for comments for this story.

Rising growth, revenue

According to business research firm IBISWorld, farm stores have experienced significant growth over the past five years, driven by rising agricultural prices, increased disposable incomes and the pandemic.

Revenue in the sector rose 5.6% to $21.7 billion in that time frame, according to the analysis.

Over the next five years, IBISWorld expected the segment to continue to grow.

Janet Rogers of Turner recently looked for geraniums at Wilco’s store in nearby Salem. She has 43 acres and visits Wilco about once a week for everything from paint to plants. “It has just about everything I need,” Rogers added.

Farm stores are popular, in part, because they feature items for people whose identity or hobbies line up with a more ag-centric lifestyle, said Mike Palazzolo, assistant professor of marketing with University of California-Davis.

The stores offer feed, seed and livestock panels, but also can have work clothes and fashionable outfits, home improvement sections, lawn and garden products, food preservation components, pet items and outdoors gear.

“You can really cover a multitude of categories where customers have needs,” said Neil Itzen, CEO of Grange Co-op.

Individual chains provide different products and goods can vary by location, with stores tailored for communities. Western shirts, for example, don’t sell as well in Boise as rural Idaho, said Lisa Meholchick, D&B Supply’s director of marketing.

With their product range, farm stores entice a mix of consumers, offering convenience so shoppers don’t have to stop at numerous specialty retailers, Palazzolo said.

“Expanding to farm-adjacent categories may be a more stable business model than a farm specialty store,” he added. Customers who wouldn’t shop at an ag specialty store also can be attracted to a rural lifestyle retailer.

Pandemic spurs country living

Ryann Reynolds, merchandising management program director with Oregon State University’s College of Business, said farm store growth also reflects changes in consumer lifestyles that started during the pandemic.

People forced to stay home wanted to get their hands dirty in the garden and with other projects, she said.

With supply chain breakdowns and social distancing rules, people decided to become more self-reliant.

“Our business really does help people do that, whether it’s growing your own garden, maybe starting a hobby farm, canning your own fruits and vegetables,” Itzen said.

People also are fleeing urban areas, though the trend slowed after the pandemic, Pilkington said in an email.

Homes in the country are more affordable, and many people can work remotely.

“Many of these ‘rural migrators’ have been millennials. As folks move to rural areas, they tend to adopt the lifestyle,” Pilkington added.

Increased competition

Wilson said Wilco and regional chains have a different style than Tractor Supply, but the industry giant has an impact.

“If you add more competitors that sell similar stuff, it adds more pressure,” he said.

Itzen said it paid to respect and pay attention to competitors. “There are always interesting takeaways, things you can learn,” he added.

Reynolds said farm store chains historically stayed away from markets with a competitor in the Northwest.

In recent years, and with leadership changes, they’ve embraced the retail battle, she added.

Competing stores have opened up in the same small communities or even the same shopping centers.

More farm store coverage

New Wilco Farm Store Opening in Eugene on April 2

New Wilco CEO brings supply chain expertise

White City to get new, expanded Grange Co-op store

Coastal Farm & Ranch transitioning to new ownership group

What Wilco’s new Yakima store illustrates about broader farm economy

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