August 23rd, 2019
Online Shopping Paradigm Shift: GNC Closing Up to 900 Stores
I’d like to share with you an eye-opening article from Total Retail which discusses GNC’s plans to close around 900 stores due to the shift to online shopping. This is further proof that we are living through the paradigm shift we’ve been talking about for years as the move to only shopping continues to serve as a retail wrecking ball for those companies who fail to adapt and overcome the changing market conditions. GNC built their empire with brick and mortar establishments but even established retailers aren’t immune to the online shopping revolution. I’ve included below an excerpt from that article, but you can CLICK HEREto read the whole thing on Total Retail.
Total Retail’s Take:GNC is taking steps to remove its stores from shopping malls, which have struggled to attract shoppers as more purchasing takes place online. Of GNC’s approximately 4,100 U.S. locations, 61 percent are in strip centers and 28 percent are in malls, Chairman and CEO Ken Martindale said, noting strip center locations have been “relatively stable from a comparable sales perspective.” By closing its unprofitable mall-based store locations, GNC has made the necessary decision to seek out alternative channels to drive sales. One such channel includes brand partnerships, with GNC having already entered into agreements with Dick’s Sporting Goods, Hudson News, and Rite Aid to sell its products in their stores. Partnerships between traditional brick-and-mortar retailers is a growing trend, as brands try to leverage combined strengths to hold off growing competition online, as well as maximize investments in physical retail space.