GNC store closures in 2018
According to CNBC, GNC (vitamins/supplements chain) intends to close 200 stores in 2018. GNC operates more than 8,000 locations globally, about 3,300 of which are corporately held. The business is not doing that well, but it remains profitable, with the first quarter of fiscal 2018 delivering net income of $6.2 million, or 7 cents per share, compared with $24.7 million, or 36 cents a share, a year ago. The company is negotiating an external investment and wants to improve its lease terms. In our assessment, the formula of GNC is a bit too clinical and rigid, making it difficult for international franchisees to adjust to local market requirements.