Dive Brief:

• Tractor Supply's mobile app has surpassed 1 million downloads just less than a year after its rollout, CEO Hal Lawton said during Thursday's Q1 earnings call. 

• The app has become "a material portion" of Tractor Supply's digital sales, with customers able to schedule their buy online, pick up in store orders there, Lawton said. BOPIS comprises about 75% of the retailer's digital sales and 75% of those BOPIS orders are for curbside pickup. 

• Tractor Supply's loyalty program has reached 20 million members, with Neighbor's Club members making up more than 60% of its sales, Lawton said.

Dive Insight:

After realizing that the majority of shoppers visited its website through their mobile devices, Tractor Supply released and updated its mobile app to meet that demand — a bet which appears to have paid off. 

When Tractor Supply announced its mobile app launch in June of last year, the retailer said that more than 70% of its web traffic came from mobile devices. Since then, the retailer also introduced a mobile app feature that connects customers with on-demand professional veterinary advice. 

As the retailer adds more digital offerings, it has also grown its offline reach. Through its acquisition of Orscheln Farm and Home, a retailer with more than 160 stores in 11 states, Tractor Supply aims to expand in the Midwest, Lawton said. Even with many consumers shifting their spending online, retailers with a sizable brick-and-mortar footprint could be better suited to meet e-commerce demand.  

Tractor Supply's app downloads were just one part of a blockbuster first quarter for the company, which included a net sales increase of 42.5% and comps growth of 38.6%. Customer acquisition has helped its comps, and analysts expect both acquisition and retention to keep fueling Tractor Supply's growth.

An alluring loyalty program is one asset to keep recurring customers during the COVID-19 pandemic as consumers search competitors for out-of-stock products. Earlier this month, Tractor Supply updated its loyalty incentives with perks ranging from same-day delivery to trailer rentals and free shipping. 

"Over the last four years, our loyalty program has served us well to be able to thank participating customers for being loyal customers, provide rewards and special offers they value, learn more about their purchasing trends and interest and ultimately, increase customer loyalty to Tractor Supply stores," Lawton said during the earnings call.