- GNC has already closed approximately 192 franchise and company-owned locations in the first two quarters of 2019.
- The total number of mall locations is expected to reach between 400 and 500.
GNC Holdings Inc., (GNC), a Pittsburgh-based health and wellness retail store chain, has reportedly planned to shut down approximately 900 stores with a major focus on mall locations.
Store optimization is being done at GNC, as stated by officials to analyst in the company’s second-quarter (Q2) earnings call. According to reports, in the initial six months of 2019, 192 franchise and company-owned locations have already been closed. As announced by GNC officials in November 2018, a total of 900 stores would be closed over the next three years in Canada and U.S.A. as their leases expire.
The Chief Financial Officer of GNC, Tricia Tolivar states that the company would likely decrease the count of mall locations by nearly half. Tolivar further stated that currently company has slightly more than 800 malls and over time the count of malls would come down between 400 and 500.
The Chairman and CEO of GNC, Ken Martindale stated that the company will end up nearer to the top end of its initial optimization estimate. Martindale also stated that out of 4,100 U.S. locations, 28% are malls while 61% are strip centers with performance of strip center places being relatively constant from a sales perspective.
Officials stated that company is extending partnerships with Dick’s Sporting Goods and Hudson News. Presently, Rite Aid stores also account for 2,200 locations.
More than 7,400 stores are closing or under process in 2019 throughout the retail sector, which is 27% more than overall closures in 2018. Reports cite, Coresight Research has tracked closure of 5,864 stores in 2018, that included numerous of Sears and Kmart locations and all Toys R Us locations.
The “going-out-of-business” liquidation and sales trend gripping other brands is anticipated to continue. Closure of 12,000 stores is expected by the end of 2019, according to a Coresight estimate.