Hal Lawton
President & Chief Executive Officer at Tractor Supply
They did. Just fantastic. All right. Let's transition out of a typical earnings dialog and look to the future. We have a very bright past with more than 83 years of serving Life Out Here. We're coming off a record two years of performance. But from our point of view, we're just getting started. We believe Tractor Supply is well positioned for a bright future. We're in the early stages of the next transformation of Tractor Supply. This transformation should allow us to both grow our top line and earnings sustainably over a long period of time while operating at a higher margin profile. Given the robust growth of our stores, and online, that have experienced, we've had a step function change in our business that is evident in our market share gains, sales growth and profitability. We're dedicated to investing and to continue strengthening our position in the marketplace and separate ourselves from our competition. We're committed to creating sustainable value creation for all shareholders, for our team members, our customers, for the communities we call home, for our supply chain and vendor partners, and ultimately our shareholders.
The roots of our long history of growth were established in 1938 when CE Schmidt founded a mail-order catalog for tractor parts. We opened our first store in Minot, North Dakota the following year. We serve life out here. We're focused on the needs of recreational farmers, ranchers and all those who enjoy living the rural lifestyle. As I mentioned earlier, in December, we celebrated our 2000th store opening in White House, Tennessee is the testament to all of our team members who continue to support each other, our customers and our communities. Not many companies have gotten to this milestone. And I doubt CE Schmidt ever imagined this milestone when he started his tractor parts catalog business 83 years ago.
Our mission and values are the foundation for our success. Our culture is shaped around our mission of values. We've lived by these principles for over 80 years and we'll continue to do so for decades to come. Our mission and values, help us in our business decisions and they serve as guiding beacons to ensure we maintain course even in uncertain times. It is not something you can put in a financial model. But it makes a huge difference on our bottom line. But they're more than that. Our mission and values are what you feel when you walk into one of our stores and talk with one of our team members. We're not like other retailers. We are a relationship retailers. Our customers are passionate about family, their land and animals and their communities, and they count on us, Tractor Supply, to be their dependable supplier. We're able to serve our customers so well because we know our customers so well. We hire our customers. Our team members are members of and representative of the community. They're experts in equine and welding gardening and pets. They're involved in for 4H and FFA. Our team members are the largest and most important strategic asset of our company. And I encourage you all to visit us out here to experience it for yourself. At Tractor Supply, we are committed to preserving life out here for future generations.
13 years ago, we launched our stewardship program. As ESG has emerged as the universal standard for good corporate citizenship, we've adapted our stewardship program to align with this direction. And over the past year, we've made significant progress in our ESG efforts. A few highlights include significantly reducing our energy and water consumption, materially increasing the gender and ethnic diversity of our Board, Management Executive Committee, and our overall team member population, conducting unconscious bias training for over 40,000 team members and implementing a new six-week paid parental leave policy for full-time salary and hourly team members.
In September of 2021, we announced new robust goals to further reduce our carbon emissions, as well as continue our progress on diversity, equity and inclusion. After exceeding our initial carbon reduction goal set in 2018, Tractor Supply established more aggressive commitments; by 2025, we will reduce our absolute greenhouse gas emissions by 20% from what they were in 2020; by 2030, we will reduce those emissions by 50%; and by 2040, we're committed to achieving net zero emissions across all our operations. Over the past two years, we've rallied around the theme of stronger together and made material investments to accelerate our initiatives for DENI. Recently, we announced a five-year goal to support and advance underrepresented groups across our workforce, vendors, suppliers and communities. Our commitment to being a good corporate citizen has been broadly recognized. Recently, we were named to Investors Business Daily's 100 Best ESG companies of 2021.
Just yesterday, it was announced we were included in Bloomberg's Gender Equality Index. And today it was announced that we received a perfect score from the Human Rights Council. We are committed to being a leader in ESG as this is authentic to our mission and values. We're also making great business sense. Over our rich 83-year history, this business has a strong track record of success complemented by consistency and resiliency highlights include 30 consecutive years of revenue, 12 consecutive positive comp store sales growth, and an average share price performance of 28.3% since the year 2000. And this ranks as the fourth best performing stock in the S&P 500 over the last 21 years. Thank you to our investors for their confidence and we continue to strive to earn your trust and build on it. And today is all about that, the future of Tractor Supply. As demonstrated by the highlights of 2021 that you saw in our opening video, our business has never been stronger. Our team has done an outstanding job navigating the challenges and ever-changing environment over the last two years. We're benefiting from many market trends. They continue to be structurally sound. We have strengthened our customer base and we're gaining market share across our categories. Importantly, our total addressable market has grown materially and we see significant opportunities for organic growth, as well as an increased number of new stores and we will continue to invest from a position of strength to capture this growth through our Life Out Here strategy. Out here, Tractor Supply enjoy significant structural advantages.
And these advantages have allowed us to gain substantial share over the past two years. Our unaided brand awareness is 55%, and that puts us among the best in retail and well above our farm and ranch competitors, with a network of over 2000 stores and nearly 1 billion in digital business, supported by eight million square feet across our distribution centers. We have a unique ability to serve our customers wherever and however they choose to shop. We believe no other rural lifestyle retailer provides a comparable experience. And we have deep relationships with our vendors, and in many cases, are their largest customer.
Our Neighbor's Club program has 23.6 million members. It is engineered to drive customer behavior and it is the foundation for a sophisticated marketing platform and enables deep customer insights. Our brand, scale, our supply chain, our digital capabilities, our loyalty program, all in combination create significant and enduring strategic advantages for our business. Our structural advantages are the result of long-term investments in the foundation of our business and the deep seeded values embedded in our culture. These routes have enabled us to adapt in the face of the pandemic and the ripple effects of other impacts like the tight labor market, unprecedented inflation and supply chain challenges that are impacting our industry.
At the same time, broad based macro category trends towards self-reliance, world revitalization, pet adoption, home steadying, these things are benefiting our business. And when you add to that, the acceleration and trip consolidation, as people are shopping, single retailers more, you think about the adoption of digital trends, and you put all of these things together, and they are working to our advantage, as customers value us for our proximity as the one-stop shop grows. These lifestyle changes are accompanied by long-term commitments by our customer to care for and maintain their land and animals. We believe these trends have staying power and are structurally and substantially sound. These changes align with our investments in the business and dovetail well with our strategic positioning as the dependable supplier for Life Out Here. And as the dependable supplier for Life Out Here, we offer a wide assortment for our customers' lifestyle.
Our total addressable market is large and growing and it's heavily fragmented. In 2019, we estimated the total addressable market for Tractor Supply to be about $110 billion and we shared that with you in October of 2020. Today, we estimate our addressable market to be much larger at a 180 billion, the tailwinds and structural changes that we just outlined earlier, contributed an estimated 30 billion increase in the TAM. And that's a 20% growth over the past two years in our market. But by comparison, if you look at our business, we grew 50% over the past two years, and consequently gained significant share in this market. Now in addition to our core market, we've expanded our TAM by over 40 billion, given our investments and initiatives like Project Fusion and Side Lot, which have expanded our category offerings in areas like pet and lawn and garden.
With a market share of about 7% of this $180 billion market, we see substantial opportunity for growth. In an increasingly attractive market, both deepening our relationship with our current customers as well as reaching new customers. Given our total addressable market growth, continued strong performance of our new stores, and our strategic initiatives, we're revising our long-term store targets from 2,500 to 2,700 Tractor Supply stores in the United States, and we're excited to serve hundred plus more communities over the next decade. Of note, we view the Orscheln acquisition to be accretive to our overall store growth opportunity. Opening highly productive new stores is a core strength and competency of Tractor Supply. We continue to have strong new store productivity metrics with performance outpacing our historical investment thesis and our stores are profitable in year one. We have compelling returns. We continue to have significant runway for growth with high return new stores. Given the attracts [Phonetic] in our market. We're investing in growth through our Life Out Here strategy. We shared this strategy with you in the fall of 2020.
And as a reminder, there are five pillars of our strategy. And they include; deliver legendary customer experiences, which focuses on driving greater traffic and increasing conversion. Number two, advancing our ONE Tractor capabilities to reach new customers and deepen our connection with existing customers by offering a truly omnichannel experience. Number three, operate the Tractor way, which enhances the productivity and efficiency of our existing retail asset. Number four, go to the country mile for our team to ensure we continue to support and show our appreciation for our team members who drive our business every day. And then, number five, generate healthy shareholder returns, which reinforces our commitment to effective stewardship of our shareholders' capital. To support these transformational growth initiatives, we increased our capital investments from 275 million in 2019 to over $600 million in 2021. We made excellent progress in year one of our strategy and are on track with our expectations. We continue to be very excited about our strategy. Given our customers' response, the performance of the key initiatives and a robust, long-term growth prospects.
Two key tenants of our Life Out Here strategy are the Fusion and Side Lot initiatives. They are designed to drive space productivity and sweat our existing assets. Project Fusion is a multi-year store remodel program that both revitalizes the store environment and introduces an improved layout and expanded offerings. These changes are designed with the customer and our team members in mind to drive productivity through areas like enhanced experiences, like pet washes and wellness clinics. But operational improvements as well to better support growing demand, things like our feed rooms. Also, they're driving space allocation trade-offs, such as the service desk but also widening our assortment across departments like apparel and animal and tools. Complementing Project Fusion is the Side Lot initiative, which transforms and expands our existing outdoor Side Lot retail space to drive greater productivity and convenience, with the addition of a garden center and to drive through pick up line to support our omnichannel technology investments.
Importantly, these projects are delivering on the return expectations with material sales, existing customer sentiment improvements and new customer acquisition. By 2026, nearly a 100% of the store base will be in the Fusion layout and 60% to 70% will have had executed the Side Lot initiative in it. By 2022, we plan to exit the year with nearly 30% of our chain in the Fusion layout and over 15% of our chain with Side Lot. And Seth will take us through a more detailed walk of these exciting transformations later in the presentation. Another key component of our Life Out Here strategy is the enhanced focus on customer service. This isn't just about training but also about enabling our team members to spend more time with our customers. To accomplish this, we rolled out the fast program, the field activity support team. And we started this program with 1,200 team members in late 2020,. And we expect it by another 200 in 2021, and plan to add 300 to 400 more team members in the first half of this year.
This team's sole focus is on merchandising execution. And this specialization improves our store merchandising, while simultaneously enabling our store team members to focus more time on customer service. And with over 95% on time planogram completion, our stores have never looked better or been more shoppable for our customers. And this team enables improved store productivity and is funded significantly by our vendor partners. It's truly a winning program for all of our stakeholders. And John will share more details on our initiatives to fuel our legendary customer service later on. Tractor Supply is fortunate to have a highly engaged and loyal customer base. Last year, as we've discussed, we converted our Neighbor's Club from affinity program to a tiered points based reward program. Simply said, the more you spend, the more you save. And this conversion is resonating with our customers. And year-over-year, we've added 4.6 million new customers to the program, and we're seeing broad strength continuing across our customer base. More customers than ever are shopping at Tractor Supply and these customers are making more trips and are spending more money per trip. We are experiencing strong retention of customers that have shopped us over the last 12 months. Our retention rates continue to run above our historical standards. And I'm excited for you to hear more customer insights and details on how we intend to continue to engage our new customers and drive retention of our existing customers from Christie.
More than five years ago, we introduced our ONE Tractor strategy that drove significant progress in providing a seamless customer experience. Our focus on engaging with our customers anytime, anywhere and in anyway they choose has allowed us to reach nearly $1 billion in e-commerce sales last year. Our customer is deeply engaged with Tractor Supply and this transformation is happening across the whole shopper journey. Our customer behaviors continue to evolve embracing convenient ways of shopping with a continued preference for mobility. Since launching our mobile app in late 2020, we've had 2 million plus downloads with the app already 100 plus million dollar platform for us We remain focused on introducing new capabilities, improving the shopping journey and ensuring we have scalable platforms.
As we enter 2022, we are more excited than ever about the future of Tractor Supply. We see significant opportunity to continue to grow the business, expand our competitive moat and drive business productivity, all the while creating value for our shareholders. As we've completed the rollout of Fast and Neighbor's Club, we've freed up some bandwidth, and that's going to allow us to focus on two new initiatives, as well as evolve the focus of our digital initiatives. The first one is lead with legendary service. We consistently rank in the top 10% to 20% of retailers on customer service, right up there with the best of them, but our goal is to be number one. And we have all the assets to achieve it. We've got the right format, the right team, the right culture and we have made and will be making investments in our team and their technology and in their training. And you're going to hear more from John on our plans in this area in his presentation. Increasing mobile engagement. Mobile will be the next moat that we create around our business. We're going to convert our nearly 24 million Neighbors Club members into power users. And Rob will share more highlights of our plans to accelerate our growth and achieve more than $2 billion in digital sales by 2026.
Deliver on queue, we talk too often about how important this business is to us. We have the number one market share in bag feed and we're in the top five in pet food. And given our growth in these categories over the past two years, we've increased cubic volume by 26% running through our stores compared to 2019. These are destination categories and it is critical for us to ensure we have capacity for future growth. And importantly, that we are the lowest cost to serve in the market in these categories. And our supply chain is a critical differentiator for us to deliver on queue. And Colin will share more details on our ability to continue to widen the gap with our competition. Given our recent performance and the significant opportunity that I've just outlined, we're updating our long-term guidance. Now, we're maintaining our sales outlook of plus 6% to plus 7% in spite of a much higher base of sales. We're increasing our operating margin guidance to a range of 10.1% to 10.6% and that's an increase from our previous guidance of 9% to 9.5%.
We're also increasing the top end of our range for EPS growth to 11%. And notably, we're increasing our dividend payout to 40% while maintaining our commitment to share repurchases. And we're spending approximately 650 million annually of capital. These are aggressive but achievable targets that will create significant shareholder value over time. And Kurt will share more details as he focuses on our ability to deliver strong and sustainable total shareholder return. From our founding 83 years ago, Tractor Supply has proven to be a business model that has stood the test of time to be resilient and differentiated. This business has shown the ability to evolve over the years to reflect our customers' changing needs and we're investing to continue to evolve and capture the significant opportunities for growth. And underpinning our strategy is an experienced retail team that knows retail and our culture and our team members and they are passionate about the out here lifestyle.
As we enter year two of our multi-year Life Out Here strategy, our business is substantially stronger than before the pandemic. Our resilient and differentiated business model allows us to capitalize on the structural consumer trends benefiting our business with a long runway of growth ahead of us. We have momentum in our business and our results demonstrate that our multi-year Life Out Here strategy is working. We will continue to evolve our business from a position of strength. And with that, I'll turn to the team to walk you through more detailed plans. Thanks so much.