GNC to Close 200 Stores This Year
GNC said Thursday it plans to shutter about 200 stores across the U.S. and Canada in 2018. The vitamin shop owner has more than 8,000 locations globally, about 3,300 of which are corporately held and within the U.S. and Canada, according to its website. It also operates shops within Rite Aid stores, and has a little more than 1,000 domestic franchise locations. GNC explained its "[e]fforts toward favorable lease renegotiations or relocation opportunities are ongoing and may impact the amount of stores closings." It added it only expects to open a "limited number" of new locations this year.
Total Retail's Take: GNC joins other retailers such as Toys"R"Us, Sears, Bon-Ton, Foot Locker, and others in closing stores this year. The company has struggled with lagging sales amidst increased online competition, and earnings have been hurt by an extensive physical store network that's draining resources. By implementing this cost-cutting move, GNC figures to add savings to its bottom line. However, the retailer has to make inroads with its digital business as well as figure out how to optimize sales at its remaining storefronts. The road to recovery is just beginning for GNC.