More than half about 56 percent of the products now in their stores are owned and produced by GNC. About 80 percent of its business is in vitamins, minerals, herbs, supplements and sports nutrition products.
To address online competition, it bought one of the biggest players in the marketplace, LuckyVitamin. Proving the power of the brand, GNC. Pilcher John Steppe.
Daily News Podcast. Daily Newsletters. Log out. Daily News Podcast Daily Newsletters. More Stories. GNC revenue has dropped for three straight quarters. Related Stories.
AP Nation and World Oct. If GNC introduces more commodity-like products, it will simply be competing with more experienced retailers while selling products with lower margins.
At the same time, doubling its retail space going forward may help GNC improve employee satisfaction and retention. In the past, small retail spaces supported only one employee, isolating them in a non-social environment and leading to greater employee turnover. Increasing store size will hopefully lead to more sales and an increased number of employees per store. This target market demographic happens to be shrinking as baby boomers age.
This is especially true given the growth of cafes in gyms and the increased availability of muscle building supplements through strategically placed retailers. Overall, GNC seems to be taking positive actions, but the company may struggle to compete given its huge debt load. Although the annual report hints at increasing store sizes and a more diverse product offering, GNC needs to use the extra retail space productively or the company will simply be taking on additional costs.
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