Will the GNC & Walmart Strategic Retail Partnership be Successful?

Remember almost 2 years ago when I said that GNC was trying to pull off this magical feat where it could close 1000+ store locations, but actually grow its physical retail exposure? Well, it’s magician clout just got a major boost after it secured arguably the most important strategic retail partnership. On 6/7/21, GNC announced that it entered into an exclusive agreement with Walmart to sell a selection of its GNC private label product assortment including vitamins, nutritional products, sports nutrition, and weight management products. These will be available through more than 4,000 Walmart stores and online starting this month. It’s also not hard to understand why GNC would want to partner with Walmart; Walmart is the most powerful physical retailer in the U.S and Walmart also sells the most VMS supplements in the U.S. (even more than GNC itself). GNC is a very well-known brand to the collective American consumer, but many of these wellness category consumers might fall into distinct groups that would normally step into a GNC store. Wellness consumers aren’t static, so GNC hopes that when they are ready to take their wellness journeys to the next level, it will be in its stores for the full GNC experience. The ultimate goal of converting Walmart shoppers into GNC loyalty members could drive long-term growth, as the vast majority of GNC revenue comes from loyalty members. The biggest question is...will this strategic retail partnership push the needle for GNC?