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GNC To Close 4,400+ Stores For One Day As It Rebrands ‘Broken Model’

GNC will close all 4,400+ of its U.S. corporate stores for one day only on Dec. 28. The vitamin and supplements retailer will reopen on Dec. 29 with a new customer experience focused on simplified pricing and a new rewards program.

The rebranding campaign, titled One New GNC, will offer a single price both in-store and on GNC.com, replacing multiple pricing structures across channels and membership levels. A new loyalty program, My GNC Rewards, will launch with the retailer’s new mobile app, which will be available on or before Dec. 28 in the iTunes app and Google Play stores.

GNC has been running a pilot of the rebranding in nearly 500 stores since September, with the new store design aimed to be a “more inclusive and warm presence,” from the colors and the signage to the layout.

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The rebranding aims to “leave the old, broken model behind,” according to a statement from interim CEO Robert F. Moran.

GNC hopes to mend this model with the addition of new in-store POS terminals designed to speed the checkout process, guide customer decisions based on purchase history and manage loyalty programs. Additionally, GNC will provide associates with tablets on the sales floor to help them answer customers’ questions and recommend products and wellness regimens.

The retailer also will introduce new brands and new products in 2017, and is making changes to its supply chain to ensure in-demand products are in stock.

The rebranding is one of Moran’s biggest initiatives since he took the interim CEO position in July 2016, after former CEO Mike Archbold stepped down. Archbold’s resignation came as GNC sales continued to plummet, giving Moran plenty of reasons to start a transformation effort.

Recent quarterly earnings reports haven’t been healthy, with the retailer reporting consolidated revenues of $628 million in Q3, an 8.1% decline from the same period in 2015. During the same period, domestic retail same-store sales dipped 8.5%, or $35.2 million, year over year.

The financial results through 2016 have cast doubt on the retailer’s future scalability. In April, GNC announced plans to sell and refranchise 84 corporate stores to franchisee Sun Holdings for $17 million. At the time, GNC said it was looking to sell a total of 200 company-owned stores this year and another 1,000 in total over the next three to four years. 

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