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GNC Revamp Looks to Replace 'Old, Broken Model'


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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. 

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The latest news, opinions and commentary on what's happening in the franchise arena that could affect your business.

Tom KaiserTom Kaiser is associate editor of Franchise Times. He can be reached at 612.767.3209, or send story ideas to tkaiser@franchisetimes.com.
 
Beth EwenBeth Ewen is editor-in-chief of Franchise Times. She can be reached at 612.767.3212, or send story ideas to bewen@franchisetimes.com.
 
Nicholas UptonNicholas Upton is staff writer at Franchise Times. He can be reached at 612.767.3226, or send story ideas to nupton@franchisetimes.com.
 
Mary Jo LarsonMary Jo Larson is the publisher of Franchise Times Magazine and the Restaurant Finance Monitor.  You can find her on Twitter at
 twitter.com/mlarson1011.
 
Nancy WeingartnerNancy Weingartner is editor-at-large of Franchise Times magazine and the editor of the Food On Demand media project. You can reach her at 612-767-3200 or at nancyw@franchisetimes.com.
Follow her on Twitter at http://twitter.com/nanweingartner.
 

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