Item 2. Properties

At December 25, 2021, the Company operated 2,181 stores in 49 states (2,003 Tractor Supply and Del’s retail stores and 178 Petsense retail stores). The Company leases approximately 95% of its stores. Store leases typically have initial terms of between 10 and 15 years, with two to four optional renewal periods of five years each, exercisable at our option. No single lease is material to the Company’s operations. Approximately 57% of our stores are in freestanding buildings and 43% are located in shopping centers. The following is a count of store locations by state:

Index

The following is a list of distribution locations including the approximate square footage and if the location is leased or owned:

(a) The leased distribution center in Hagerstown is treated as an extension of the existing owned Hagerstown location and is not considered a separate distribution center.

(b) This is a mixing center designed to process certain high-volume bulk products.

The Company’s Store Support Center occupies approximately 260,000 square feet of owned building space in Brentwood, Tennessee, and the Company’s Merchandising Innovation Center occupies approximately 32,000 square feet of leased building space in Nashville, Tennessee.

The Company is building a new distribution center in Navarre, Ohio, which is expected to be approximately 900,000 square feet and is currently anticipated to be completed in the fall of fiscal 2022.

In addition, on January 26, 2022, the Company announced plans to build a new distribution center in Maumelle, Arkansas. This new distribution center is expected to be approximately 900,000 square feet. Construction is planned to begin in the middle of 2022 and is currently anticipated to be completed in late 2023.

We also use third-party operated import centers, mixing centers and pop-up distribution facilities which provide additional distribution capacity.