Vitamin Shoppe helps vitamin-takers meet their recommended daily
requirements. The fast-growing company sells vitamins, supplements,
and minerals, as well as herbal, homeopathic, and sports nutrition
and wellness products at more than 750 company-operated The Vitamin
Shoppe stores located in some 45 US states, the District of
Columbia, Puerto Rico, and Canada. It also sells directly via
catalog, and the websites VitaminShoppe.com and BodyTech.com.
Stores offer about 20,000 items, including food and beverages and
pet products, under more than 800 national and private-label
brands. Vitamin Shoppe was founded in 1977.
The New Jersey-based company's largest markets are California,
New York, and Florida, home to about a third of its stores. Vitamin
Shoppe has an international presence in Canada and Puerto Rico.
Vitamin Shoppe operates retail stores under the Vitamin Shoppe
and Super Supplements banners. The retail segment accounted for 85%
of sales in 2015, with the rest coming from the Internet and
The company's primary product category, sports nutrition,
accounts for 34% of the revenue. Other product categories included
vitamins, minerals, herbs, and homeopathy (24%); specialty
supplements (24%), and other products (18%).
Sales and Marketing
Vitamin Shoppe relies on location, location, location! as a
prime marketing tool, adhering to the belief that situating its
stores on prime real estate draws customers. It advertises in
magazines, and relies on radio and television ads to promote
certain new stores. Direct mail is another avenue for
Vitamin Shoppe posted record-setting revenues of $1.27 billion
in 2015 mainly due to a 90% surge in manufacturing sales. This was
attributed to a spike in products manufactured for its Vitamin
Shoppe assortment and a notable spike in products manufactured for
Profits have declined the last few years, however, falling 13%
to $53 million in 2015. The most recent decline was fueled by a
rise in selling, general, and administrative expenses affiliated
with the payment of interest. After rising in 2014, cash flow from
operations declined by 39% in 2015 to $61 million due to an
increase in inventory purchases to support activities.
Vitamin Shoppe is extending its retail reach through organic
growth and acquisitions. After adding 163 and acquiring 31 stores
from 2013 to 2015, the chain planned to open another 30 in 2016.
Its long-term goal is to operate more than 900 US
stores. The retailer prefers to locate shops in freestanding
buildings or corner locations in strip malls, rather than
traditional shopping malls.
Besides adding stores, Vitamin Shoppe is experimenting with
new store formats and products. Eco Shoppe -- launched in
Austin, Texas, in 2009 -- as its name suggests, sells
green-living products, including apparel, home, garden, and gift
items; office and pet supplies; baby and kids products; and
yoga gear. Previously, the company launched an e-commerce site
called BodyTech.com, devoted to products for bodybuilders and other
Mergers and Acquisitions
In 2014 the company acquired FDC Vitamins, doing business as
Nutri-Force Nutrition. Headquartered in Florida, Nutri-Force is a
contract manufacturer of vitamins, minerals, and supplements (VMS).
The deal enhanced Vitamin Shoppe's ability for the custom
manufacturing and private labeling of VMS products.