6.3. SR 09-19-2005 - Laserfiche WebLink

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'f WHAT PLOW1 A 260..cc ZD-h;p. Manco All Terrain Vell\cle, just wtliilt the farmer ordered for a quick zip around the fields .. WHEAT WRAPS To neatly cover your hay bales-What would the neighbors say?-TSC sells sleeves. Box of 25: $79 ... SEABISCUIT UVES for children of hobby farmers, a hobby horse-a $35 modef of t~ legendary Thoroughbred .. ORNAMENTAL A decorative windmill is perfect forthe landowner who wants to create an envlronment- friendly ambiance T LAWN UMO Ufestyle farmers are wiling to spend more on t~ basics. Here: TSC's $1.500 Huskee Supreme 22-h.p. laWn tractor "WE STARTED LOOKING AT PEOPLE WHO ENJOYED THE RURAL LIFESTYLE." -JOE SCARLETT was founded in 1938 as a haven for farm- ers who needed tractor parts (hence the catchy name). Over the nat four decades, TSC strayed off the faun and started ped- dling everything from sporting goods to Crock~Pots. In the 1970s, conglomerate Fuqua Industries acquired TSC, further diluting the retailer's focus. Scarlett participated in a leveraged buyout in 1982 and floated TSC as a public company in 1994; he owns 14.5% of the common stock, worth about $233 million today. In the mid-l99Os, management began to reassess TSC's market position. "The number of farmers was shrinking," Scar- lett says. "We started looking at people who enjoy the rural lifestyle." Baby boomers were beginning to migrate from cities to rural areas, and these new ree farmers \.vere spending $5.5 billion annu- ally on supplies. "Lifestyle" positioning demanded big changes in merchandise. Farmers raise livestock. Lifestyle farmers have pets and ride horses fur fun. Farmers buy feed in quantity and cheaply. Faux fanners buy pet "food" and spare no ex- pense. So TSC stocked up on equine products, bird supplies and pet chow. Outwent the cheaper-hy-the-ton stuff. In A28 TIME INSIDE BUSINESS JUNE 2005 ... FADX-FARMIR HEAVIN Out went the tractor parts. in came the pet supplies and lawn trinkets came fancier foods like Hill's Science Diet. The focus on pets coincided with a greater focus on women. Before the switch, only 32% of the customers were women. Yet they purchase 80% to 90% of the horses in the U.S. Improving the se- lection of pet and equine supplies bumped the percentage of women cus- tomers to 50%. It also helped same-store sales increase 9.9% in 2004. Analyst Eric Marshall of First Dallas Securities says of TSC, "They've really figured out how to provide a lifestyle concept and address certain needs of their customers outside the realm of big-box retai1ers." TSC is benefiting from another trend: the growth of exurbia, as more cities ex- tend their reach into what were once rural areas. The company has more than 500 stores in 34 states yetplans to open 62 new stores this year and 75 in 2006 in such places as Enfield, Conn., and Dundee, Mich., that have proximity to urban areas. Although there's risk in that rapid expan- sion, CEO Jim Wright says the store growth is a reflection of greater numbers of do-it- yourselfers ",,110 want to get back to nature yet still commute to an office. "We are p0- sitioned in the path of that grmvth:' he says. A trip around Bakshis and Zang's home store in Burlington shows that TSC is clear~ ly a sanctuary for the affiuentlawn warrior. Horse-racing helmei$are displayed near hummingbird feeders, and. outdoor paint, in John DeereGreen for antique tractOr col- lections, fills the shel\>es.l\TVss'bare the cen- ter aisle with shiny lawn mowers. Udder cream comes in pretty clover tins (women have discovered its charms for clUlpPed lips), and lawn trinkets are the hot item for spring. In the pet center, an aluminum bin full of chirping baby chickens is adjacent to model plastic horses for the kids. "The 60-year-old farmer in his bib overalls is not buying toys for his pe1:s," says Marty Thrselic, Midwest regiorutl store manager. "Their dogs work off their excess energy?' For less-motivated, unemployed dog;, 'ISC sells training devices. Bakshis and Zang like the fact that the store staff includes welders, farmers, horse owners and ranchers. "It's not only a hardware store but it's a farm store and a pet store; Bakshis says. She estimates that they spend about $3,000 a year at'ISC. "It's a lifestyle. It's fun and frustrating and a lot of work-and very satisfying:' And for the right kind of retailer, very profitable. .