More than a year after GNC launched its search for a new CEO, the Pittsburgh-based vitamin and supplements retailer has found its new leader at long-time partner Rite Aid.
Ken Martindale takes the helm at GNC on Monday, becoming the fourth top executive since 2014 at the Downtown-based company. He has been CEO of Rite Aid stores and president of Rite Aid Corp the past two years, first joining the Camp Hill drug store chain in 2008.
Next year marks 20 years since GNC first partnered with the Rite Aid pharmacy chain to place more than 2,000 GNC stores-within-a-store at Rite Aid locations.
Mr. Martindale moves into the C-suite at GNC just nine months into its One New GNC rebranding strategy featuring simplified and reduced pricing and a new customer loyalty program. The moves are all part of the company’s effort to return to earlier profitability in a vitamin and supplements sector buffeted by e-commerce competitors.
In a release Wednesday, Mr. Martindale expressed his “deep admiration for GNC, the tremendous brand they’ve built and, in particular, the successful work they’re doing to fundamentally transform the business model.”
Since a highly successful initial public offering in 2011, GNC has seen its share price break $60 in November 2013, then steadily fall — hitting a 12-month low of $6.51 earlier this year.
The decline has not been kind to GNC executives.
Shares were selling at $33.52 when long-time President and CEO Joe Fortunato left in August 2014 and $20.28 when Mr. Fortunato’s replacement Mike Archbold was removed in July 2016. Mr. Archbold’s interim replacement, Bob Moran, will now return to his earlier role as board chairman.
Rite Aid has had its own setbacks, most notably when Walgreens and Rite Aid abandoned efforts for Walgreens to buy its rival over concerns the deal would not receive regulatory approval. Instead, Walgreens officials said they would buy 2,186 Rite Aid stores in a $5.18 billion deal that would hand over nearly half of the smaller company’s store locations.
Since January, Rite Aid shares have plummeted from $8.77 to less than $2.50.
GNC shares closed Wednesday at $8.24, up 2.36 percent from Tuesday's $8.05 close.
GNC has about 600 employees at its headquarters Downtown.
Steve Twedt: stwedt@post-gazette.com or 412-263-1963.
First Published: September 6, 2017, 1:01 p.m.
Updated: September 6, 2017, 1:04 p.m.
