When CEOs buy their companies' shares big-time, it can signal good things to come for investors
Companies like VitaminShoppe and GNC are banking on customer loyalty programs and revamped online experiences to keep their share of a booming market.
Shares of GNC Holdings (NYSE: GNC) finished the last trading day of 2016 with a 64% decline for the year -- its worst full-year performance since its IPO in 2011. The nutritional supplements retailer's sales have fallen due to intense competition from superstores, warehouse retailers and e-commerce sites, as well as due to lawsuits questioning the efficacy of its products.
GNC (NYSE: GNC) has completely reimagined its stores and its brand. It's closing all of its locations on Dec. 28 for the transformation, then reopening them on Dec. 29 as One New GNC. The new model offers "dramatically improved customer experience and a new business model built around consumer preferences," according to a press release.
GNC will fork over $2.25 million for allegedly using illegal ingredients in its supplements.
Rite Aid Corporation runs a chain of drugstores in the United States. Some of Rite Aid stores have clinics that provide preventative services.
Shares of GNC Holdings (NYSE: GNC) plunged more than 25% on Thursday after the retailer pulled its full-year guidance, suspended its stock buyback program, and announced the resignation of CEO Mike Archbold, who also stepped down from the board of directors. Robert Moran, a GNC director and former CEO of Petsmart, has taken over as the company's interim CEO.