GNC Revamp Looks to Replace 'Old, Broken Model'
Vitamin and supplements brand GNC Holdings announced last week that it will launch a bold new company revamp, closing all U.S. corporate stores on December 28. After adding a new pricing structure and tech enhancements, the company will reopen December 29 with the launch of One New GNC.
The company will ditch its multiple pricing structure across channels and membership levels as it will begin single pricing both in-store and online. GNC will ditch its Gold Card program for a new loyalty program, My GNC Rewards. Alongside its new reward program, the company will launch a new GNC mobile app.
The retailer also plans on boosting its in-store technology, rolling out new POS terminals across the chain to help speed up the checkout process and guide customer decisions.
“We're making these investments because we believe in this business, its future and our ability to return to growth and deliver shareholder value,” Robert F. Moran, interim chief executive officer of GNC, said. "The New GNC leaves the old, broken model behind. We're confident it will have a positive impact on the business, but it will take time for the changes to take hold and translate to improved financial results."
Moran was named the interim CEO after Michael G. Archbold stepped down in July.
The company hopes the revamp, launched in all of its 4,464 U.S. owned and franchised locations, will help with slumping sales in 2016. Same-store sales in domestic franchised locations were down 8.9 percent in the third quarter of 2016, and overall net income dropped from $45.7 million to $32.3 million.