GNC, Vitamin Shoppe Not On Same Page In Solving Similar Growth Challenges
Common thread between the manufacturers and retail chain operators offering their own and other brands extends to relatively recent executive suite shakeups following extended stretches of declining sales growth. GNC reported nearly $70m net income for 2018 after two years of net losses and Vitamin Shoppe trimmed its loss by more than $200m from 2017 to $12.1m.
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As it prepares to be acquired, firm unveils first redesigned store in Edgewater, NJ, and plans five additional locations to open with a similar format through January. The "store is a great example of our ongoing transformation into an agile, customer-centric company," says CEO Sharon Leite.
Liberty Tax, which owns tax-return preparation business Liberty Tax Services and branched into capital investing in July, agrees to pay $6.50 per Vitamin Shoppe share, a 43% premium on its closing price a day earlier. Vitamin Shoppe's earnings struggles continued in Q2 as total sales fell 7.6% to $270.9m and it reported a $3.6m net loss after generating $5.3m net income a year ago.
GNC is launching numerous products including an energy drink for millennials and a patented ingredient to improve upper and lower body strength. It also is giving its stores a face lift to implement a "service-driven” concept.