Vitamin Shoppe Sales Getting Back on Track, Online Slow to ...€¦ · Vitamin Shoppe is one of the...

Vitamin Shoppe Sales Getting Back on Track Online Slow to Take Off

CUSTOM REPORT Cleared for general distribution

March 20 2013 Companies AMZN COST CVS EBAY GNC RAD TGT VITC VSI WAG WFM WMT

Reverdy Johnson rjblueshiftideascom 4156775801

Summary of Findings Seventeen of 22 Vitamin Shoppe Inc (VSI) regional

managers and store personnel said first-quarter sales have increased 5 to 10 year to year as demand for vitamin mineral and supplement (VMS) products continues to grow

Seventeen of 41 customers are increasing their visits to and spending with Vitamin Shoppe stores 16 others are spending the same amount year to year

Offline competitors are seeing double-digit sales growth in line with or slightly higher than Vitamin Shoppe sources Online competitors said growth is significantly higher than offline following the trend of the last three years

Vitamin Shoppersquos in-store experience centers on its sales staff selection locations and quality products including private labels These have created customer loyalty and largely warded off competition from the online channel

Vitamin Shoppersquos online business faces several challenges pure-play e-tailersrsquo greater discounts its own inability to replicate the in-store service experience lower margins and corporatersquos focus on its brick-and-mortar expansion

Six sources across three silos said Dr Oz has a major influence on consumers and that sales spike after he recommends a product or discusses a health concern on his syndicated TV show

Brick-and-

Mortar Sales

Online Sales Customers Loyal to VSI

Products VSI Regional Managers

VSI Stores

VSI Customers

Offline Competitors Online Competitors NA

Research Question

What are sales trends and online prospects for Vitamin Shoppe

Silo Summaries 1) VITAMIN SHOPPE REGIONAL MANAGERS All 10 sources said first-quarter sales growth is recovering although most added that local expansion has moderated to 5 to 10 year to year A Northeast source confirmed that Superstorm Sandy was a severe drag on the core regionrsquos operations and sales with recovery ongoing 2) VITAMIN SHOPPE STORES Four of 12 sources quantified first-quarter sales increases as 5 to 20 while four others only said that sales and traffic were exceeding goals and targets Sources acknowledged the increased attempts to build Vitamin Shoppersquos online channel though none expect it to compete with pure-play VMS sellers 3) VITAMIN SHOPPE CUSTOMERS Of the 41 sources 17 are increasing their visits and spending at Vitamin Shoppe 16 will maintain their current spending and visit frequency and eight will spend less Fifteen said Vitamin Shoppe carries their preferred product in stores which keeps them loyal Twenty-four are not interested in buying VMS products online though some use websites for research before going into stores 4) EXECUTIVES WITH OFFLINE COMPETITORS Three of the four sources who commented said their sales traffic and spending have increased so far in 2013 year to year Two of the three categorized these increases as 10 to 15 while the third said online sales have grown 150 for each of the last three years and are now the companyrsquos focus The fourth source said traffic and sales have declined in the single digits as more customers shift online in search of discounts 5) EXECUTIVES WITH ONLINE COMPETITORS All four sources who commented on online sales reported growth of at least 20 year to year one said sales grew 800 during the last three years Vitamin Shoppe is slow to develop online sales because of its brick-and-mortar focus its ineffective strategy that applies its retail model to ecommerce and its inability to compete on price without eroding its margins 6) VITAMIN SHOPPE SUPPLIERS Both sources said Vitamin Shoppersquos website ranks low in online searches lacks content and functionality and its prices are higher than competitorsrsquo 7) ONLINE CONSUMER SURVEY USING SURVEYMONKEY An online survey of 109 customers who have shopped at Vitamin Shoppe GNC andor any other VMS retailer in the last 12 months showed that customers are reticent to shop online for their VMS purchases

1

1 Ferry Building Suite 255 San Francisco CA 94111 | wwwblueshiftideascom

Vitamin Shoppe Inc

Background The US vitamin mineral and supplement (VMS) market is $31 billion with online sales comprising 7 of current sales Vitamin Shoppe is one of the largest VMS retailers with 579 brick-and-mortar stores It gets 11 of its revenue from the online channel growing at 8 per year Blueshiftrsquos October 2011 report showed that Vitamin Shoppersquos in-store service and low prices were driving sales Customers prefer to shop in Vitamin Shoppe stores rather than on its Web site because they want access to personalized service no shipping costs or waiting and in-store matching of online prices Vitamin Shoppersquos fourth quarter 2012 earnings were disappointing as revenue missed analystsrsquo estimates for the first time in several quarters Same-store sales increased 52 but Superstorm Sandy had a 16 negative impact and affected 160 stores CURRENT RESEARCH Blueshift assessed trends in sales traffic and spending at Vitamin Shoppersquos brick-and-mortar stores its prospects for growing its online business and the reasons its customers remain loyal when faced with a growing list of VMS retail options We employed our pattern mining approach to establish and interview 76 sources in six independent silos an online survey and seven of the most relevant secondary sources focused on overall VMS trends and online competition for Vitamin Shoppe

1) Vitamin Shoppe regional managers (10) 2) Vitamin Shoppe store personnel (12) 3) Vitamin Shoppe customers (41) 4) Executives with offline competitors (6) 5) Executives with online competitors (5) 6) Vitamin Shoppe suppliers (2) 7) Online customer survey (109) 8) Secondary sources (7)

Next Steps Blueshiftrsquos next report on the VMS industry will include a deeper look into sales trends to determine if Vitamin Shoppersquos fourth-quarter results were an anomaly and if sourcesrsquo comments about 10 sales growth for the first quarter are holding up We will highlight Northeastern stores and their recovery from Superstorm Sandy and will monitor new locations in the West as they face competition from firmly entrenched local retailers We also will more directly compare sales for Vitamin Shoppe with GNCrsquos and will check Vitamin Shoppersquos online growth as it incorporates its catalog into its website Finally we suggest increasing the focus on the product suppliers and distributors silo

Silos 1) VITAMIN SHOPPE REGIONAL MANAGERS All 10 sources said first-quarter sales growth is recovering although most added that local expansion has moderated to 5 to 10 year to year Regional growth targets appear to be in the 10 range and one source believes 15 is exceptional for the company as it now stands A Northeast source confirmed that Superstorm Sandy was a severe drag on the core regionrsquos operations and sales with recovery ongoing Although most sources characterized online sales as a priority for the company all were sanguine about brick-and-mortarrsquos ability to remain relevant Four said Vitamin Shoppe is more focused on its brick-and-mortar expansion upon which they believe online expansion will follow Customer loyalty to Vitamin Shoppe comes from sales staffrsquos assistance and transparent product recommendations In-store sales also provide an opportunity to highlight higher-margin items No source specified a particular product or noted Vitamin Shoppersquos private-label products as a reason for customer loyalty

1 Ferry Building Suite 255 San Francisco CA 94111 | wwwblueshiftideascom 2

Vitamin Shoppe Inc

Stores Sales Up 15 Sales Up 10 Sales Up 5 Sales Flat or Down Total

Total 2 5 2 1 10 Regional manager Southeast

Sales are up as much as 15 ahead of other regions throughout the country Vitamin Shoppe is putting more effort toward online growth the source reported hearing that online traffic and sales had increased significantly in December Vitamin Shoppe also is in the midst of shifting its existing catalog business to its website which should give its online business an immediate boost while limiting cannibalization of store sales Store associatesrsquo ability to provide product education differentiates the company from supermarkets and online outlets It also creates customer loyalty and opportunities for higher-margin item sales

ldquoMy entire region is probably trending at around 12 to 15 above last yearrsquos sales which is pretty good compared to other parts of the country simply because the economy here is really powering ahead But itrsquos maybe a little slower than where we were six months ago in terms of growth Itrsquos just a seasonal slowdown after the holidaysrdquo

ldquoWe are putting more of our corporate energy into the website over the next year or so and people tell me traffic and sales shot up in December GNCcom [GNC Holdings IncGNC] is growing faster But wersquore busy rolling our existing catalog business into the site so when that project is completed wersquoll basically have a lot of sales preloaded from the front It also means the site is not going to cannibalize the stores any time soonrdquo

ldquoVMS purchasing is slowly moving online as people get smarter about the formulations out there Itrsquos our job to make sure that translates into people moving from Vitamin Shoppe stores to VitaminShoppecomrdquo

ldquoWe concentrate on the high-intensity customer someone whorsquos motivated to be an active buyer Thatrsquos where the best price points are and where we can cultivate the strongest loyalty and ultimately provide the biggest value We educate them on what works and what they need Grocery stores and websites canrsquot do thatrdquo

ldquoWe concentrate on the most cutting-edge products in our world and leave the Metamucil and One-A-Day sales to Wal-Mart [Stores IncWMT] and Walgreen [CoWAG] The kind of supplements we sell need better educated and more dedicated sales teams people with real personal investment in eating better and teaching other people how to lead healthier lives Once something hits the mass consciousness like vitamin C or fiber supplements it doesnrsquot need us anymore Wersquore happy to stock it but only in the best formulations availablerdquo

ldquoWebsites canrsquot really educate in a trustworthy way because therersquos just so much junk information onlinerdquo ldquoWhen people know what they want they go for the cheapest and often not the best product so the retailer gets

a smaller sale and the customer might get a less positive experience and doesnrsquot come backrdquo

Regional manager Southwest The region finished 2012 with sales increasing nearly 15 and the new year has brought further sales increases and store expansion Vitamin Shoppersquos online business is now a priority Customer loyalty comes from educating them on the value of specialized higher-end products Grocery stores and pharmacies focus on generic vitamins and other relatively low-intensity VMS products and do not pose a threat to specialty vendors

ldquoThe fact that wersquore building stores here indicates that the territory is a success We closed last year up about 15 in terms of sales and foot traffic was nothing to complain about So far this year wersquore even busier but a lot of that may just be a seasonal thing Itrsquos peak season hererdquo

My entire region is probably trending at around 12 to 15 above last yearrsquos sales which is pretty good compared to other parts of the country hellip But itrsquos maybe a little slower than where we were six months ago in terms of growth

Regional Manager Vitamin Shoppe Southeast

We closed last year up about 15 in terms of sales and foot traffic was nothing to complain about So far this year wersquore even busier but a lot of that may just be a seasonal thing Itrsquos peak season here

Regional Manager Vitamin Shoppe Southwest


Vitamin Shoppe Inc

ldquoThe website is the next best thing to a sale we can make in-storemdashpush the website remind people that the website is there when wersquore closed or out of stock on something I think the site is more of a priority now Wersquore still growing fast to face GNC directly My territory is expanding and wersquore adding 20 more stores But the site is on the radarrdquo

ldquoWe get a lot of older customers who arenrsquot as Internet-savvy as the iPhone generation So with our core market wersquore not really going to be afraid of losing sales to Web-only competitors Add in the cost of shipping bulk dietary additives and bubble-packed bottles and we think we can hold our own well enoughrdquo

ldquoOffline GNC is probably the only name in our space that we really worry about Theyrsquore in just about every single mall around here so therersquos less room for them to grow I saw that their stores locally outnumber ours by about 4ndash1 Wersquore already a lot more efficient and have a lot more room to grow They look defensiverdquo

ldquoOn the Web therersquos Amazon[com IncAMZN] and [Walgreenrsquos] Drugstorecom Beyond them therersquos a lot of little sites Itrsquos a really confusing world online supplements Amazon doesnrsquot advertise their supplements and seems to be more of a grocery-store vitamin counter sort of inventory Drugstorecom is obviously oriented around an online drugstore approach Both are really not set up to promote the advanced products we sellrdquo

ldquoWe specialize in advanced nutriceuticals proprietary herbal extracts high-density proteins These are products that obviously require a bit more promotion and are more profitable for us because there arenrsquot as many people qualified to sell them Some are house brands but most are simply less commoditized I think our site has a bigger mix of the commodity items and has to engage in more aggressive pricing to win that sale so I wouldnrsquot be surprised if the margins were lower thererdquo

ldquoPeople around here are hungry for better medicine Insurance is expensive and rarely covers all the bills if you get really sick And as people live longer they want to live healthier Eating better and keeping their bodies clean of poisons is a cost-effective way to do that The vitamin supplement business has a lot of room left to growrdquo

Regional manager Southeast

Sales growth has been 10 thanks to a growing market for specialized Vitamin Shoppe products Store personnel provide a service that cannot be replicated in drugstores or online and targets high-growth product categories first Vitamin Shoppersquos goal is to expand its own share of the still-fragmented specialty VMS market while stimulating overall demand for these products

ldquoIf the overall industry is growing 6 a year the specialized piece of that industry that we want to be in might be growing 10 to 20 a year And in fact thatrsquos more or less where our sales trend isrdquo

ldquoOur website sales are supposedly up in line with our physical retailmdashabout 15 across the companyrdquo

ldquoThe kinds of supplements you can buy in the grocery store are now mature products and only growing alongside the overall economyrdquo

ldquoOur job is to do two things continue our consolidation of the specialty world and weld the otherwise extremely fractious health-food culture back together This obviously enhances our share of the larger supplement marketrdquo

ldquoWe need to grow the parts of the supplement market that we want to focus on That means advanced scientific formulations botanicals wellness and targeted supplements for weight or fighting cancer or asthma or what have you That way the entire industry grows and we are in front with the parts that are growing fastestrdquo

ldquoSo much of the industry is stuck in formulations that havenrsquot changed hellip Our stores emphasize bringing modern science to the shopperrsquos level to take them beyond the cod liver oil they can buy in any drugstore or onlinerdquo

ldquoOur emphasis on brick-and-mortar is part of that two-part strategy I mentioned Filling out the map helps us capture a greater percentage of the specialty store sale much like the way dropping Wal-Mart stores all over the country helped them capture leading share of broadline retail We use our stores to have conversations with people who are casually interested in health and turn them into educated supplement users and buyers You canrsquot do that onlinerdquo

We use our stores to have conversations with people who are casually interested in health and turn them into educated supplement users and buyers You canrsquot do that online



Vitamin Shoppe Inc

Regional manager Southeast The regionrsquos sales are up 10 meeting expectations Online growth has been slower than expected In-store staff benefit from an opportunity to upsell customers and foster loyalty Moving the catalog business to the website will help online sales Regulatory threats are primarily product-driven and create a barrier to marginal startup vendors while favoring established players

ldquoOur business is booming In general wersquore seeing maybe 10 growth which is I think not the best in the company but still hitting our internal targets We are not opening any new stores here for the next few months but we will probably pick up a few locations in the latter half of 2013rdquo

ldquoWe have an older and more health-conscious population here and they love any product that might be able to give them a better quality of life The website seems to be doing fine alsordquo

ldquoWith VitaminShoppecom they thought online supplements would become huge almost immediately and replace the existing networks of physical health stores It turns out that enough of this business moved online to push many stores out of operation but more than a decade later the stores are still the main way maybe 90 of people buy their supplementsrdquo

ldquoYou want to compare labels go back and forth down the aisle calculate ingredient strength Most importantly you want to take that bottle home with you and start right away You donrsquot want to wait a week for the box to come in the mail After the box comes you might switch that particular part of your regimen to an online delivery system or you might not but the next time you want something new yoursquore a lot more likely to go to a storerdquo

ldquoVitaminShoppecom is a big part of our business as a company maybe 5 to 10 of the whole Itrsquos relatively expensive because it has all the costs of the catalog sidemdashwhich is phasing out pointing more people back to the sitemdashand not many of the benefits of the brick-and-mortar where you can upsell a customer Shipping costs have soared in just the last year and I donrsquot think theyrsquore passing that on to the customerrdquo

ldquoAmazon is out there but at best itrsquos catalog sales And their catalog is a mess Their only strength is scale Even Wal-Mart is better at selling these products to long-term consumers because there at least you can ask around the store if anyonersquos heard of somethingrdquo

ldquoYoursquoll see more actions and a greater shift toward absolute transparency Thatrsquos to the advantage of larger chains like us who can actually back up what we say keep careful records and train our people what they can and legally canrsquot say Fly-by-night websites shady stores mail-order schemes are always the ones threatened by greater regulation We arenrsquotrdquo

Regional manager West Coast

Traffic and sales have increased 10 which is lower than desired but is due to existing regional competitors Vitamin Shoppersquos strategy is to supplant these local vendors before their principals sell out and abandon customers to online rivals Whole Foods Market Inc (WFM) represents an entirely different retail category

ldquoWe are seeing more foot traffic as we consolidate and are converting it into maybe a 10 sales growth trend It isnrsquot as big as Irsquod like yet but thatrsquos because of all the entrenched local competition As those stores go away one way or another it makes it easier for us to expand our reach and grow fasterrdquo

ldquoAround here there are still quite a few old-school health food stores from the 1960s and 1970s hellip Then you have the local chains that might have anywhere from two to 20 locations And then you have GNC and usrdquo

ldquoOur mission here is to be the new local store when your old independent store closes Wersquore still fairly new in this vast and extremely health-conscious territory As long as there are still people used to buying supplements locally by the time we get here wersquove

Our business is booming In general wersquore seeing maybe 10 growth which is I think not the best in the company but still hitting our internal targets We are not opening any new stores here for the next few months but we will probably pick up a few locations in the latter half of 2013


We are seeing more foot traffic as we consolidate and are converting it into maybe a 10 sales growth trend It isnrsquot as big as Irsquod like yet but thatrsquos because of all the entrenched local competition

Regional Manager Vitamin Shoppe West Coast


Vitamin Shoppe Inc

achieved our goal That should keep us busy for the next few years probably into 2018 or even beyondrdquo ldquoOnce the changeover is complete and independent stores have been rolled into more sustainable entitiesmdashlike

Vitamin Shoppemdashwe can get serious about taking the brakes off the Internet At that point wersquoll have the wealth of expertise and experience alongside the technology and distribution capacity that ecommerce offersrdquo

ldquoIrsquom not really afraid of Whole Foods We both sell healthy nutritious products but their model has always been fresh food Our model has been better diet additives along the drugstore modelrdquo

ldquoIf anything we see Whole Foods as our ally in helping everyone change their lives We canrsquot really stock big bottles of pomegranate juice for example We sell pomegranate extracts In the past independent health markets had both the grocery side and the supplement side but now theyrsquore divergingrdquo


Comp store sales in the region are up about 10 year to year Online poses no more of a threat to brick-and-mortar than catalog retail once did The in-store business focuses on higher-volume categories that are also high retention Losing customers to online means a missed opportunity to introduce products or upsell current ones Hardcore consumers will gravitate toward no-frills vendors that offer the cheapest way to get exactly what they want but most embrace the guidance that Vitamin Shoppe staff can provide Regulatory concerns pose a greater risk to online vendors

ldquoStore traffic is good Wersquore building new stores with two new ones opening in the next few weeks to help fill out our footprint Those are ZIP codes that have a strong base of existing supplement buyers Not counting those stores our established locations are up maybe 10 over last yearrdquo

ldquoWe are not really concerned about online supplement sales competing with our business The products can look similar but itrsquos a very different type of customer People who buy online are either casual one-time experimenters or extreme high-volume consumers Most people are in the middle and those are the ones who come to us Itrsquos the same principle as catalog mail-order vitamin sales in the old daysrdquo

ldquoCatalog sales tend to be exotic impulse items and letrsquos face it performance enhancers that someone might be embarrassed to buy in traditional retail environments That kind of thing is the heart and soul of online supplement sites and our website as well for that matter But in the stores we do better business on multivitamins wellness supplements weight loss protein Those are high-volume high-retention categories People either try it once and go away or become very regular customersrdquo

ldquoThe very high-volume customers also shift online because they know what they want and look for a better deal counting shipping We keep them on our side by offering price matching and steering them toward products they can only get through usrdquo

ldquoAs long as someone is even a little unsure of what they want and what the best supplement for their needs might be they come into the store They know that GNC is really more about the bodybuilding supplies and will push their own brands so they come to us for a neutral perspective from our Health Enthusiasts [sales team]rdquo

ldquoShifting them from the store to the site means giving up any chance we have to suggest new products and upsell or cross-sell to people who need a broader regimen or need to scale up or down Once we give that up wersquore racing to the bottom with Amazon or whomever to show up in the search engine with the lowest price on the bottles people already have on their listrdquo

ldquoAs the regulators block certain ingredients or dubious medical claims online vendors suffer the worst because they rely on those ingredients and those claims for their SEO [search engine optimization] We can shift our SKUs as needed they canrsquot Regulation is good for our customers and our Health Enthusiasts can walk them through the changing rulesrdquo

Regional manager Southwest

The region has seen sales increase as much as 10 year to year as the economy recovers and customers become more invested in their health Weight loss alone should keep consumers coming into trustworthy VMS stores The online landscape is simply too crowded with bad information VMS buyers who shop online have no loyalty and are impossible to

People who buy online are either casual one-time experimenters or extreme high-volume consumers Most people are in the middle and those are the ones who come to us Itrsquos the same principle as catalog mail-order vitamin sales in the old days



Vitamin Shoppe Inc

retain except through unique products and commodity pricing Amazon is significant only through scale Vitamin Shoppe still has a lot of room to grow organically offline

ldquoOur business is doing well maybe 5 to 10 better than where it was last year People are shopping again and above all else theyrsquore willing to spend a little now to minimize their healthcare bills in the long runrdquo

ldquoDiet is a key category for us probably the biggest one in our part of the country Itrsquos not quite at the level of Weight Watchers or Jenny Craig but thatrsquos really the market we cater to and itrsquos the one that sets us apart from all the Internet wannabe storesrdquo

ldquoPeople come to us or GNC and talk to our staff to get the real nutritionist or dietician perspective build the supplement into a lifestyle so it actually works Our people are trained not to make claims they canrsquot back uprdquo

ldquoTo get an unbiased honest view you donrsquot have anyone to go to online Our site is OK but not great Thatrsquos why serious customers donrsquot buy supplements online unless theyrsquore the expertsrdquo

ldquoThe experts are only loyal to their favorite active ingredients and maybe a brand now and then They will cruise the Internet looking for the highest concentrations at the lowest pricemdashcounting shippingmdashand will usually find it before they step into a store Next time theyrsquoll do the search again and maybe buy from a different retailer We canrsquot compete for those peoplerdquo

ldquoThe only way an online vendor can get those expert online customers to come back is to give them a cheaper price on exactly what they want You will never get pricing power That sale will always be a loss leader hellip Amazon is only a player in this space because of their volume Nobody else is in that league without having a physical store network behind it for warehousing display and shopper educationrdquo

ldquoWersquore still super-busy expanding the physical store network without having to transition anything online yet In my state we could easily add another two stores just to get up to the national average coverage and literally dozens if we want to catch up to places like New York New Jersey That to me shows that wersquore just at the early stages of this industry moving from a mom-and-pop sort of fringe into the mainstreamrdquo

Regional manager Midwest

Sales growth is at 5 year to year the new year has gotten off to a slow start because of inclement weather Vitamin Shoppe is focused on dominating the standalone supplement brick-and-mortar map and believes online then will follow VMS products require active in-store promotion Vitamin Shoppersquos in-store services provide both a higher-quality experience and a cheaper all-in-all proposition

ldquoThis is a fairly strong market for us really the core of the Midwestern expansion I think wersquore generating maybe 5 more revenue than we were a year ago Wersquore a little down so far this year but thatrsquos the weather talking Once the last of the snow is out of the way we can bring people back in and get them spending againrdquo

ldquoPeople donrsquot really trust the Internet when it comes to health Theyrsquoll Google it and get some idea of what a supplement does but they want to talk to a person before they buy Thatrsquos part of why the retail network is so important to us and why online supplement sales have been hit-or-missrdquo

ldquoThe problem with pure online sales is that you basically have to stake a claim for the supplement inside the SEO and then be a low-enough cost provider You canrsquot really build credibility effectively suggest synergistic dietary benefits or do anything but sell the thing the online buyer is already looking for To do those other things you need a center of influence like a storerdquo

ldquoSelling only what the online customer wants means you canrsquot compete on quality You have to compete on price because as far as the online customer is concerned every active ingredient is a commodityrdquo

ldquoCost of customer acquisition is the stumbling block online There is just too much cut-rate competition and misinformation out there too

To get an unbiased honest view you donrsquot have anyone to go to online Our site is OK but not great Thatrsquos why serious customers donrsquot buy supplements online unless theyrsquore the experts


This is a fairly strong market for us really the core of the Midwestern expansion I think wersquore generating maybe 5 more revenue than we were a year ago Wersquore a little down so far this year but thatrsquos the weather talking

Regional Manager Vitamin Shoppe Midwest


Vitamin Shoppe Inc

many people only interested in the quick one-time sale We want to use our scale to retain the customer and bring that acquisition cost down Itrsquos a longer-term game but in the next few years you should start to see us hit a good place in terms of market penetrationrdquo

ldquoShipping is expensive and going up all the time Some online vendors tease shoppers with a discounted price but then charge shipping or even inflate the shipping charges Others advertise something more like MSRP but then waive the shipping Amazon tries both depending on the situation and the product And if you advertise a significantly higher base price people wonrsquot bother to click into your site to begin withrdquo

ldquoWe donrsquot charge shipping for in-store pickup That can save the typical person a 20 to 30 surcharge right there or give us 20 to 30 with which we can defend our margins from cut-rate vendors that offer free shipping Considering that we steer casual customers to formulations and regimens that work better we have a much better shot at getting them favorable outcomes and turning them into regular loyal customersrdquo

ldquoWe are still building out the physical store network Our mission is to become the ubiquitous supplement store with truly everything people might want and none of the proprietary product conflicts of interest that make GNC such a problem We want to be Home Depot Staples the Wal-Mart of supplements When we do that the online component will take care of itself because people will go to us directly online or offline whenever they want supplements Until that happens wersquoll focus on the offline side and the online will follow at its own pacerdquo


Sales have improved 5 from the previous year and are expected to climb even more as the weather warms up Vitamin Shoppersquos combination of in-store service and online options gives it a unique positioning Vendors that lack the physical showroom cannot effectively help the category grow those that lack an online presence suffer gradual customer attrition

ldquoBusiness is a little better than last year maybe up 5 We should see a bump once the weather clears up in a month or two and people start looking toward summerrdquo

ldquoWe have the tools to grow the whole business and the flexibility to keep a bigger share of the customers we create Locally wersquove done OK We could stand to build another store or two in this area but the economy hasnrsquot been terrificrdquo

ldquoWe have the best integrated store-and-site operation in the business We have the national network and wersquore keeping them as best we can If they want to go online we have the site with the exact same product line and promotions keyed to local Vitamin Shoppe locations GNC has a site but itrsquos pretty specific to fit their brand If you want GNC products you go to that site Therersquos not much of what we would call spontaneous foot traffic going to that site just to look up a vitaminrdquo

ldquoThis is a growth business simply because of demographics and the cost of prescription drugs Any time someone confronts mortality or the aging process it boosts interest in ways to alleviate the symptoms The more people move into a category where they confront these things the bigger our market gets and the more supplements wersquoll sellrdquo

ldquoWe could easily expand our network here by a few locations The goal there is to entice people in to see a whole store full of vitamins similar to what Home Depot or Staples achieved And once they come in their eyes are hopefully opened and they might try something they didnrsquot even know existed before Thatrsquos our goalrdquo

ldquoOnce that casual shopper starts supplementing their diet in any way more meaningful than a vitamin C we have them They ask questions sample new things keep up with the news Their shopping basket fills from a single bottle now and then to six or seven bottles every month Maybe in six months or a year they know whatrsquos out there and can start searching for it online see if they get a better deal At that point itrsquos the job of VitaminShoppecom to give them that deal and keep them from taking that bottle out of our basket and moving it to some online shopping cart somewhererdquo

ldquoFor a retail chain not to have a website at this point is ridiculous Yoursquore handing those customers over to everyone else in the industry and saying lsquoTake them if you want themrsquordquo

ldquoYou need a store to create the customer and satisfy the customer and then you need a website to satisfy the customer who canrsquot come into the store that day or simply finds it more convenient onlinerdquo

Business is a little better than last year maybe up 5 We should see a bump once the weather clears up in a month or two and people start looking toward summer



Vitamin Shoppe Inc

Regional manager Northeast Superstorm Sandy was disruptive for stores in the region reinforcing the companyrsquos westward expansion and online efforts The Northeast continues to catch up from storm-related losses Most customers want product knowledge that they still can only get in stores Brick-and-mortar market consolidation is in the early stages with room left on the retail map for several hundred more Vitamin Shoppe stores simply to serve existing consumer demand Online growth eventually will follow store expansion

ldquoSandy was awful around here many of our locations were out of commission for well over a week and wersquore still picking up lost momentum We lost maybe all our growth and are still catching up to be where we were this time last year There was some pent-up demand frontloaded into our sales afterward but we are still a little defensiverdquo

ldquoYou can actually see our site-based shipments within the Sandy region spike in November and December because of all the disruption People who really needed a refill were migrating online Thatrsquos a phenomenon wersquore still looking atrdquo

ldquoThe people who operate the stores are the ones active in growing the fanatical population through education and recommendations Naturally wersquore going to do so in such a way that keeps them loyal to our brands and pushes them to our sites if they go online at allrdquo

ldquoIrsquod say 90 of our target population isnrsquot really confident enough to move outside the supermarket vitamin shelf without help They can use the Internet sure but theyrsquore not excited about buying every single pill online And the more vitamins the supermarkets stock the more bewildering the experience gets and the more likely these people will be to buy nothing at all beyond maybe a multivitaminrdquo

ldquoNationwide we only have 580 stores to serve 300 million people The mature core isnrsquot exactly cannibalizing itself so therersquos still a lot of room before we saturate the landscaperdquo

ldquoThatrsquos the goal growing the network across the country and now into Canada too Just reaching our target fill-in on the map will take years By that point wersquoll have a much larger critical mass of casual shoppers to convert into fanatical online shoppers who use our site The site follows the storesrdquo

ldquoBetter geographical diversification would be nice as well Wersquore targeting places like the West Coast more aggressively nowrdquo

ldquoInside the specialty supplement worldmdashbeyond supermarket vitaminsmdashtherersquos a bit of a barbell You have the tiny and fanatical group that searches out all the information and will leap to try the latest formulations direct from the manufacturer Then you have the casual consumer whorsquos overwhelmed with all the information available online and prefers to come into a store to get expert inputrdquo

2) VITAMIN SHOPPE STORES Four of 12 sources quantified first-quarter sales increases as 5 to 20 while four others only said that sales and traffic were exceeding goals and targets One source said patterns were unchanged while three others did not comment on sales Sources stressed the importance of customer service and education in distancing Vitamin Shoppe from both brick-and-mortar and online competitors Price and selection also were referenced Three sources said private label was enough to keep customers loyal to Vitamin Shoppe Sources acknowledged the increased attempts to build Vitamin Shoppersquos online channel though none expect it to compete with pure-play VMS sellers Vitamin Shoppe stores will match the companyrsquos online prices and are reluctant to encourage customers to go to the website One source said store expansion continues to be a higher priority than online sales Three said Dr Oz has an influence on sales

Sandy was awful around here many of our locations were out of commission for well over a week and wersquore still picking up lost momentum We lost maybe all our growth and are still catching up to be where we were this time last year hellip You can actually see our site-based shipments within the Sandy region spike in November and December because of all the disruption People who really needed a refill were migrating online Thatrsquos a phenomenon wersquore still looking at

Regional Manager Vitamin Shoppe Northwest


Vitamin Shoppe Inc

Stores Sales Up Sales the Same Sales Down No Comment Total

Total 8 1 0 3 12 Manager near Kansas City MO

Sales have increased nearly 20 year to year with traffic up 15 Similar improvements are expected throughout the year Vitamin Shoppe creates loyalty among customers by providing a personal experience The company is stepping up its online sales efforts but faces stiff competition from long-established online VMS companies

ldquoAt this store customer traffic was up nearly 15 percent in 2012 versus 2011 Actual sales figures were probably up closer to 20rdquo

ldquoThis year we are on track to increase about the same amount in traffic and salesrdquo ldquoThe vast majority of truly knowledgeable customers shop both online

and in the stores There are just some things they canrsquot find in their stores but they are loyal to the stores when they can get what they need hererdquo

ldquoOur selection is much larger than GNCrsquos and other competitorsrsquordquo ldquoMost of what we sell is vitamins and supplements Our average

customer is female early 30s who buys vitamins supplements herbal and lsquogreenrsquo productsrdquo

ldquoVitamin Shoppe is trying to grow its online salesrdquo ldquoThe growth in online buying will be rapid because itrsquos more

economical In years to come there will be fewer and fewer brick-and-mortar stores Websites donrsquot have the overhead costsrdquo

ldquoPeople most educated about vitamins are buying more online Customers who come into the store arenrsquot as familiar with the products and need that educationrdquo

ldquoWe donrsquot see the Vitamin Shoppe website as much competition but the websites for competing brands are tremendous competition Two of our main online competitors are Bodybuildingcom and Vitacostcom [IncVITC]rdquo

ldquoItrsquos hard to compete with what is offered online overall We have 8000 different items here in the store You may have 20000 to 40000 onlinerdquo

ldquoCustomers who have shopped in the store and are familiar with us like to come back They go out of their way to get that personal experience We donrsquot try to sell them what they donrsquot needrdquo

ldquoWe will match Vitamin Shoppersquos online prices and competitorsrsquo prices but not their website pricesrdquo ldquoGNC is our biggest competition for sure But we have some herb and homeopathic products they donrsquot carry so

they send us some of those peoplerdquo Reporter Observations The store is in a rapidly growing retail area and has a bright airy look Several customers came into the store on a Monday at 11 am greeted pleasantly by the manager Sale prices were posted on quite a few products One other employee was on duty

Manager near San Diego

Sales have risen 10 to 15 for this store and 10 for the district year to year Traffic has increased thanks to better neighboring stores in the strip mall Vitamin Shoppe storesrsquo lower prices and knowledgeable staff keep them ahead of brick-and-mortar competitors The companyrsquos website however has struggled to compete with other online VMS retailersrsquo prices Online buyers tend to be younger people looking for the best deal and those who rely on advice from coaches or Dr Oz

ldquoItrsquos been pretty lean the last two years but December January and February have been really good at this store Wersquore up 10 to 15 year to year and the district is up 10 Traffic is up because the property management brought better stores to the strip mallrdquo

At this store customer traffic was up nearly 15 percent in 2012 versus 2011 Actual sales figures were probably up closer to 20 hellip This year we are on track to increase about the same amount in traffic and sales

Manager Vitamin Shoppe Kansas City MO


Vitamin Shoppe Inc

ldquoWe use customer service to stay ahead of online and competitors There is store loyalty even among Vitamin Shoppe storesrdquo

ldquoI expected in-store sales to decrease when the website went up but no If you think about perishables hellip they donrsquot make it Wersquove had a lot of returns on those online purchasesrdquo

ldquoEveryone waited for the mass exodus to online for retail year after year But having only a little knowledge is a dangerous thing in VMS We hire knowledgeable experienced staff Online can only tell you so much And places like Wal-Mart and Target [CorpTGT] the staff can tell you where it is but not how to use itrdquo

ldquoThere is a lot of comparison and price checking done Our online may not fare as well on price but you know where the product is coming fromrdquo

ldquoCustomers talk more about GNC stores than our websiterdquo ldquoItrsquos a bit of a misnomer that we only sell vitamins Sometimes people are surprised that we sell pre- and post-

workout protein muscle buildersmdashthe things usually associated with GNCrdquo ldquoPeople come to us because we have a better price compared to other stores We own our own transportation

which allows us to be 30 to 60 cheaper than Wal-Mart and Whole Foods They may have a loss leader but wersquore cheaper across the boardrdquo

ldquoPeople come in here asking for something they canrsquot even pronounce because they heard about it on Dr Oz They think he is their personal physician Thatrsquos why the store is here to walk them through their actual needsrdquo

Reporter Observations This store is located in a strip mall filled with national chains Two customers were present during our Tuesday visit at 1 pm and neither made a purchase Four staff members were waiting for inventory to arrive Dozens of sale tags were along each row and section though not as many in the workoutprotein section

Assistant manager in Chicago Since starting eight months ago this source has seen sales grow 10 to 15 The average ticket has stayed around $40 but customers are coming in more often and are more loyal to this location Dr Ozrsquos recommendations often influence product trends Weight management supplement Tonalin is a top draw

ldquoIn the eight months I have worked here I have seen store growth of at least 10 and maybe even 15 Wersquore in a good locationrdquo

ldquoThe average spend is $40 but it varies greatlyrdquo ldquoLast spring the average spend was about the same as it is now we

just have more customersrdquo ldquoWe are converting lsquofair-weatherrsquo customers to more consistent

customersrdquo ldquoIt helps that we have parking Another of our city locationrsquos does not

and it is an ongoing issuerdquo ldquoOnline sales do have an impact on our business but not that

drastically We make the extra effort to make sure our customers have a great experience in the store so they want to come backrdquo

ldquoOur online site does have a much larger section than we could ever carry in the store but people still like coming into the store They like asking questions about the products and actually seeing themrdquo

ldquoThere are thousands of products available online Sometimes that is just too much for the customer to digest They donrsquot want to pour through that many choices That is why they come into the storerdquo

ldquoWe can match our online price in the store We can always give that pricerdquo ldquoDr Oz has quite an influence on what is selling and trends Any time he mentions something whether it be a

certain vitamin or supplement sales increase for it temporarily I end up stocking up on it for the spurt and then it slows down Then they run a repeat and demand pops up again for a brief timerdquo

ldquoThe top draw in the store is the Tonalin It is a weight management product We have it on sale now for $2999 for a bottle Our store-brand products also sell very wellrdquo

Itrsquos been pretty lean the last two years but December January and February have been really good at this store Wersquore up 10 to 15 year to year and the district is up 10

Manager Vitamin Shoppe San Diego

Dr Oz has quite an influence on what is selling and trends Any time he mentions something whether it be a certain vitamin or supplement sales increase for it temporarily

Asst Manager Vitamin Shoppe Chicago


Vitamin Shoppe Inc

Reporter Observations This location is in a heavily foot-trafficked area Parking is limited but spots were available during our visit on a Thursday afternoon Store traffic was slow Two employees were in the store organizing and stocking the shelves One middle-aged woman was visiting the store for the first time and a man in his 50s was looking at vitamins

Manager in Dallas

Sales have increased 5 to 7 year to year during the first two months of 2013 Private label is an important component of the storersquos sales and engenders customer loyalty Online sales are growing but the company does not share percentages even with local management This store honors Vitamin Shoppersquos online prices

ldquoOur sales are trending slightly better than last year Wersquore probably doing 5 to 7 better just during the first two months of 2013 Irsquod have to put it on the economy But wersquove had some store improvements as far as merchandising and we had a changeover in store management hererdquo

ldquoAbout 40 of our overall business is sports nutrition The remaining 60 is a combination of core health antioxidants fish oil Omega-3s immune-building supplementsrdquo

ldquoGNCrsquos still our biggest direct competitor but Whole Foods Sprouts [Farmers Market LLC] are definitely competitorsrdquo

ldquoHouse brands account for 25 to 30 of our sales If we can get people to buy into the Vitamin Shoppe brand a vast majority continue to purchase it They sell for about a 10 discount relative to third-party brandsrdquo

ldquoWersquore definitely trending to more online salesrdquo ldquoWe have an online terminal in our store but itrsquos not something we advertise in the store We want people to

purchase from us rather than shop online At the same time online is an added benefit to our shoppersrdquo ldquoA lot of times our online prices are less expensive than our in-store prices We honor our online pricesrdquo ldquoPrice point and customer service are our two biggest attributesrdquo

Reporter Observations The store is located in a strip mall across the interstate from a large shopping mall The manager and an associate were stocking shelves at the back of the store During a 45-minute visit on a Thursday afternoon eight to 10 men and womenmdashranging from early 20s to middle agemdashentered the store Most conferred with sales staff before completing purchases About half purchased workout-related supplements Separate product displays upfront advertised Vitamin Shoppe Omega-3 Fish Oil for $999 (37 off) for a bottle of 60 1100mg capsules 10 to 41 off sports nutrition products and $1999 for 15-pound containers of whey protein

Assistant manager near Kansas City KS

The storersquos sales increased in 2012 and the source had heard that online sales also were growing Vitamin Shoppersquos price-matching policy gives it an advantage over competitors on- and offline Many customers still prefer the service and convenience of buying at the store This store has a larger selection of products than its two main local competitors

ldquoOur sales increased in 2012 over 2011 We are not allowed to say any more than thatrdquo ldquoIf someone finds something from the Vitamin Shoppe website at a better price we will match it in the storerdquo ldquoWe will match a competitorrsquos price but not their website pricesrdquo ldquoA lot of people buy online but many of our customers like buying at the store They like the service the store

provides and the conveniencerdquo ldquoOnline purchases have free shipping if the order is more than $25rdquo ldquoOur main competitors here are GNC and Complete Nutrition [Holdings Inc]rdquo ldquoWersquove got quite a bigger selection than our competitors We get a lot of repeat customersrdquo

Reporter Observations This Vitamin Shoppe is in a major shopping area of big-box and specialty stores but some navigating of side streets is required to get to the store Products were clearly priced and displayed Some products were on sale Two customers and two employees were present during our Friday visit at 130 pm

Our sales are trending slightly better than last year Wersquore probably doing 5 to 7 better just during the first two months of 2013

Manager Vitamin Shoppe Dallas


Vitamin Shoppe Inc

Manager in New York City Store sales are exceeding expectations but Vitamin Shoppersquos online sales likely will continue to lag the industry The company may be reluctant to migrate online too quickly The number of Vitamin Shoppe locations in the area makes in-store shopping just as convenient as online GNC is Vitamin Shoppersquos biggest competitor nontraditional retailers like Whole Foods are not a threat because they lack selection and have higher prices

ldquoOur stores are consistently exceeding sales goalsrdquo ldquoWe have many many locations in Manhattan and itrsquos just as

convenient to stop by as it is to order onlinerdquo ldquoAlso if we donrsquot have the product yoursquore looking for in our store we

will always order it for you and waive the shipping fee whereas online you pay for shippingrdquo

ldquoA lot of our customers still prefer face-to-face contact with our employees I would guess the company is just not as concerned about online as long as our stores are doing wellrdquo

ldquoOnline sales will grow because the industry as a whole keeps growing Health advocates and doctors are promoting vitamins and minerals nowrdquo

ldquoWe could probably handle 10 to 12 annual online sales growth over the next few years but nothing like 20 or 25 If we move too quickly online it might hurt our store sales and make it harder to gauge future inventory levelsrdquo

ldquoFor people who prefer to shop online we offer a live chat where you can talk to a product expert the same way you could in a storerdquo

ldquoOur biggest competitor is GNC but our prices are lower even with their discounts Customers like our rewards program and if you are a subscriber you get free magazinesrdquo

ldquoPlaces like Whole Foods arenrsquot really competition for us because they donrsquot have the selection and their prices are higherrdquo

Reporter Observations A store manager and two sales associates were present at this Vitamin Shoppe on a Sunday at 3 pm The store is in close proximity to several health clubs and a university Three or four customers visited the store A man wearing gym clothes was searching for a fitness supplement and a woman asked a sales associate where she could find Gaba The shelves were full and well organized

Assistant manager in New York City

Sales are beating goals so the focus remains on store performance and growth The source is focused only on continuing to exceed his sales targets Vitamin Shoppe faces heavy competition online from both brick-and-mortar rivalsrsquo websites and online-only retailers Still many customers prefer to shop in the store

ldquoWe surpass our sales targets every year I think the company is focused on continuing to do what works with our regular storesrdquo

ldquoThere is so much competition online It isnrsquot just the online version of GNC Itrsquos Bodybuildingcom itrsquos Vitacost even Amazonrdquo

ldquoI couldnrsquot say what is going to happen with online sales I donrsquot pay attention to what Vitamin Shoppe is doing online Irsquom really just focused on whatrsquos happening in my storerdquo

ldquoIf you shop in the store you can actually see what you are buying and talk to somebody who knows about the productsrdquo

ldquoGNC is our biggest competitor in terms of stores but Vitamin Shoppe has better customer service Also GNC is commission-based so they always try to push things on you If you donrsquot buy they brush you offrdquo

ldquoWe have more SKUs than GNC Nobody can beat us on varietyrdquo Reporter Observations The assistant manager a sales associate and two customers were present during our visit on a Sunday at 2 pm Customers were greeted as soon as they walk in the door We noted no special promotions or product displays but the shelves were well stocked and organized

A lot of our customers still prefer face-to-face contact with our employees I would guess the company is just not as concerned about online as long as our stores are doing well

Manager Vitamin Shoppe New York


Vitamin Shoppe Inc

Manager near San Diego Store traffic has increased year to year Sports nutrition products are the biggest sellers because of the storersquos proximity to gyms and sports organizations GNC and small nutrition shops are the storersquos biggest competitors Still customers choose Vitamin Shoppe because it has the best prices service quality and selection Shopping online can be more convenient than having to visit a store

ldquoPeople come here because of the great price point quality and selectionrdquo ldquoSports drinks protein shakes prepost-workoutmdashthose are most popularrdquo ldquoGNC is one of our biggest competitors for sure Then therersquos small nutrition shops too They may charge more

but they might have stuff we donrsquot carryrdquo ldquoWe match Vitamin Shoppersquos website prices but we donrsquot match othersrsquordquo ldquoI donrsquot get any feedback about onlinerdquo ldquoOnline is often more convenient than coming in a store The older generation typically comes in to the storerdquo

Reporter Observations At 3 pm on Tuesday the staff was busy putting out inventory Customers included a woman in her 60s a teenage boy and his mother and two men in their late 20s

Store associate in Chicago

Store traffic and ticket average have not changed dramatically in the last year but the store is doing well The source expects Vitamin Shoppe to continue to thrive because customers want immediate gratification and to take advantage of the storersquos price-matching policy and lack of shipping fees Dr Oz holds an influence over product demand

ldquoCompared to a year ago store traffic is about the same Online business has not pulled from our businessrdquo

ldquoI havenrsquot seen a dramatic change in what people are spending in the last yearrdquo

ldquoPeople like to come into the store over purchasing online because they donrsquot want to have to wait to get it They want it immediately and are often out of something when they come inrdquo

ldquoPeople donrsquot want to pay the extra to get overnight shipping so it keeps them coming into the storerdquo

ldquoNothing beats face-to-face interaction That is why there will always be brick-and-mortar storesrdquo ldquoWe will match any price that our site advertises onlinerdquo ldquoThe young guys come in for the protein powders and shakes The older guys come in for enhancement products

and vitamins their doctors recommend Ladies generally come in for the weight management productsrdquo ldquoOne big seller now is Raspberry Ketone Dr Oz had it on his show back in late 2012 and we cannot keep it in

stock hellip We just got about 10 units in this morning and I just sold the last twordquo ldquoTonalin is also a big seller It is weight management productrdquo

Reporter Observations This location has more traffic than another Chicago store visited by Blueshift Parking is at a premium in the shared lot During our 30-minute visit on a Thursday afternoon eight to 10 customers were in the store and nearly all made purchases Men and women were browsing the weight management section

Manager near Atlanta

Private-label and exclusive products like BodyTech and Mytrition keep customers loyal to Vitamin Shoppe Customer service and product knowledge also endear customers to the in-store experience Price matching and free shipping on online orders also help Vitamin Shoppe stave off competitors

ldquoWe have specific products that keep our customers loyal and coming back Itrsquos the BodyTech and Mytrition productsrdquo

ldquoPeople like our customer service They know we know our products and we can answer questions which they canrsquot get onlinerdquo

ldquoWe donrsquot see a huge number of customers ordering online instead of coming into the store We match any price onlinerdquo

People like to come into the store over purchasing online because they donrsquot want to have to wait to get it They want it immediately and are often out of something when they come in

Store Associate Vitamin Shoppe Chicago


Vitamin Shoppe Inc

ldquoNontraditional outlets arenrsquot our competition We go to lsquoVitamin Shoppe Universityrsquo and know every product in our stores Somewhere like Whole Foods canrsquot compete with thatrdquo

ldquoOur main competition online is Supplement Warehouse But we offer free shipping on all orders over $25rdquo ldquoOnline sales of VMS will grow due to people like Dr Oz he recommends it people buy itrdquo

Reporter Observations Only one customer and the manager were in the store during our Monday visit starting at 1 pm The store was immaculate


Vitamin Shoppe branded products and customer service are major draws for customers Vitamin Shoppe matches its websitersquos prices as well as its competitorsrsquo in-store prices

ldquoOur Vitamin Shoppe brands are what keep customers coming in and loyal to usrdquo

ldquoOnline doesnrsquot have much impact on us We match our online prices here in the store and wersquoll match our competitorsrsquo prices toordquo

ldquoWe donrsquot encourage people to shop online thatrsquos just a perk we have for them Itrsquos not our main focus Most other competitors look at online shopping as their main servicerdquo

ldquoWe donrsquot see a lot of our customers shopping online because we service them and give them product knowledge Our customer service keeps them coming to the storerdquo

Reporter Observations The manager two sales associates and several customers were present during our Tuesday visit at 2 pm This location is in a heavy-traffic area and highly visible from the street BodyTech and Mytrition products were displayed at the front of the store

Manager in the Los Angeles area

Retail stores provide customers the option of asking questions about brands and products Vitamin Shoppersquos online efforts have only now started to take off though its stores are not encouraging customers to go to the website

ldquoIf a customer knows what they want especially those who buy just basic vitamins nothing will stop them from buying online But if a customer still needs some guidance about whatrsquos new safe etc they come in the storesrdquo

ldquoWe get a lot of our business from being in high traffic areas our store relies on thatrdquo ldquoOnce a customer buys online they rarely go back to in-store shopping If their order gets messed up especially

if they are over 50 we might see them returnrdquo ldquoWe are not encouraging customers toward the Internet We are opening more stores every year and donrsquot want

online to hurt thatrdquo ldquoWe have not put the effort into online sales that they put into the storesrdquo ldquoAt the same time wersquove improved our online capabilities we have a better website and a bigger online staffrdquo

Reporter Observations The store was relatively busy on a Thursday at 530 pm with at least 15 customers at any given time and three employees busily attending to customersrsquo needs Shelves were well stocked and every aisle was clearly labeled

3) VITAMIN SHOPPE CUSTOMERS Of the 41 sources 17 are increasing their visits and spending at Vitamin Shoppe 16 will maintain their current spending and visit frequency and eight will spend less Fifteen said Vitamin Shoppe carries their preferred product in stores which keeps them loyal to the company Three others said they prefer Vitamin Shoppersquos private-label products Twenty-four are not interested in buying VMS products online though some use websites for research before going into stores Vitamin Shoppe was lauded for its customer service and knowledgeable staff A broad selection was a more important factor to those increasing their visits and spending while location was more important to those maintaining their purchase patterns Fourteen said they often buy basic vitamins for less at retailers like Target Wal-Mart and Costco Wholesale Corp (COST) Of the eight sources who have reduced their Vitamin Shoppe spending three said they had moved away from their nearby

Our Vitamin Shoppe brands are what keep customers coming in and loyal to us

Manager Vitamin Shoppe Atlanta


Vitamin Shoppe Inc

Vitamin Shoppe store two others said they intend to resume shopping at Vitamin Shoppe when circumstances allow Only two of the eight cited bad experiences as the reason for leaving Vitamin Shoppe

Customers SpendingVisits Up

SpendingVisits Flat

SpendingVisits Down Total

Total 17 16 8 41

No VMS Purchases Made Online 13 7 4 24

VSI Store Service and Staff Are Key 9 7 3 19

Also Shopping at VSI Competitor 7 6 6 19

VSI Offers Preferred Products 7 7 1 15

VSI Location Is Key 4 7 0 11

VSI Selection Is Key 6 3 1 10 Note Some sources gave more than one response

Mid-40s woman in Florida

This source is shopping at Vitamin Shoppe almost 100 more than a year ago and will increase her purchases in the coming year because of the companyrsquos product selection and availability She buys online about twice a month Her husband shops regularly at a Vitamin Shoppe near his office spending $50 to $60 for workout products The source also shops at CVS Caremark Corp (CVS) several times a week for prescriptions and other items

ldquoI am shopping at Vitamin Shoppe almost 100 more now than a year ago and it is mostly because of my motherrsquos health needs We can often find better deals than in the common storesrdquo

ldquoAbout every two months my husband is dropping at least $50 in the Vitamin Shoppe store going for protein and whey and workout things He likes Vitamin Shoppe more than GNCrdquo

ldquoOver the next year I will shop a little bit more at Vitamin Shoppe because of their product selectionrdquo

ldquoI shop online one to two times a month I take advantage of free shipping or some sort of offer that usually draws my attention to their websiterdquo

ldquoI am doing more online because of location The store is not convenient for me and I choose not to spend $4 a gallon in gas to get thererdquo

ldquoWith the amount of prescriptions my mother takes and between my husbandrsquos and my daughterrsquos prescriptions we are in [CVS] three to four times a week It is only four minutes from the houserdquo

San Diego woman in her 30s

This source is spending more than a year ago and has switched from other stores to Vitamin Shoppe because of convenience She currently visits the store every few months and expects to increase her visits this year She praised Vitamin Shoppersquos in-store customer service She only shops in brick-and-mortar stores

ldquoI am spending more than a year ago because I am buying more products at Vitamin Shoppe than at other retailers I used to purchase vitamins and supplements through various resources but it is more convenient to pick up what I need at the Vitamin Shopperdquo

I am shopping at Vitamin Shoppe almost 100 more now than a year ago and it is mostly because of my motherrsquos health needs

Customer Vitamin Shoppe Florida

I will probably increase my shopping at Vitamin Shoppe because I am beginning to buy vitamins and supplements for family members in addition to myself

Customer Vitamin Shoppe San Diego


Vitamin Shoppe Inc

ldquoI will probably increase my shopping at Vitamin Shoppe because I am beginning to buy vitamins and supplements for family members in addition to myselfrdquo

ldquoThe customer service is better at Vitamin Shoppe versus competitors I like that when I ask a question I get a straightforward answer and not someone trying to sell me something I do not need or wantrdquo

ldquoIn general I like the products and the quality at Vitamin Shoppe The quality for the price is equitablerdquo ldquoI buy tea tree oil from Trader Joersquos I used to buy vitamins and supplements there but have shifted to buying

these items from Vitamin Shoppe nowrdquo Florida woman in her 20s

This source has increased her spending at Vitamin Shoppe because of a change in diet She finds Vitamin Shoppe employees to be more knowledgeable the stores to be larger and the prices less expensive compared with GNC She buys her more common vitamins and supplements at Target or drugstores She does not shop online with Vitamin Shoppe but will use the site to conduct product research

ldquoIrsquove been shopping at Vitamin Shoppe for about a yearrdquo ldquoI only buy protein powders at Vitamin Shoppe I find no need to buy

other vitamin supplements as I can purchase them at Target or a drugstorerdquo

ldquoI will probably spend more at Vitamin Shoppe this year as I am incorporating more protein supplements into my diet as I have changed up my exercisetraining regimenrdquo

ldquoI have generally found Vitamin Shoppe employees to be more knowledgeable than those at GNCrdquo

ldquoI donrsquot find the rewards program very beneficial in terms of any real savings The prices in general are still expensive at Vitamin Shoppe but I find it more affordable than GNC unless there is a specific salerdquo

ldquoI do not shop with Vitamins Shoppe online However before I buy any protein powder I use a variety of sources to research the taste and quality of the product including searching the reviews and products on their website I spend the $40 on a big jarrdquo

28-year-old woman in Kansas City MO

This source is increasing her spending and visit frequency at Vitamin Shoppe because a store opened near her house She also likes its private-label products Vitamin Shoppe has better prices and a more inviting atmosphere than its competitors She does not shop for vitamins online

ldquoI spend about $50 every couple months at Vitamin Shoppe My purchases there have increased now that they have a store close to where I liverdquo

ldquoI compared prices with Complete Nutrition and it is way cheaper at Vitamin Shopperdquo ldquoI like Vitamin Shoppe stores better than the competitors such as GNC The GNC stores are tight and compact

The Vitamin Shoppe is light and airy I donrsquot really buy from grocery stores eitherrdquo ldquoThe employees in the store are always friendly and helpful and I do rely on their knowledgerdquo ldquoI never buy any vitamin products onlinerdquo

22-year-old man in Washington state

This source is increasing his purchases at Vitamin Shoppe as he attempts to become healthier also his friend is the storersquos manager He has no loyalty to the company though and would switch to GNC for similar employee discounts He regularly buys whey protein fish oil and other products Vitamin Shoppe will benefit from its purchase of Super Supplements

ldquoI will shop at Vitamin Shoppe more this year because I need to get healthier and this is a good place to start It will also cost me significantly less than others because my friend works thererdquo

ldquoI stay at Vitamin Shoppe simply because my friend works here If he switched to GNC so would I There is nothing significantly specialmdashjust hellip because of my contactrdquo

ldquoI used to shop at GNC and spent a lotmdashabout $400 a trip I spend less now because of the deals and I get a percentage off by bundling items Also I use off-name brands for some items to save moneyrdquo

ldquoI never have shopped on Vitamin Shoppersquos websiterdquo

I will probably spend more at Vitamin Shoppe this year as I am incorporating more protein supplements into my diet as I have changed up my exercisetraining regimen



Vitamin Shoppe Inc

ldquoTaking over Super Supplements Vitamin Shoppe will take over the market and surpass GNC and other big companiesrdquo

39-year-old woman in New York

This sourcersquos Vitamin Shoppe purchases are increasing as she no longer shops online This long-time Vitamin Shoppe customer prefers the chain over others like Whole Foods because it has more vegan options She spends $50 at Vitamin Shoppe monthly

ldquoI am spending more than a year ago at Vitamin Shoppe about $50 a month because I no longer shop onlinerdquo

ldquoI have shopped at Vitamin Shoppe for years I usually purchase something on a monthly basis I have been shopping there more than a year ago because I no longer order my enzymes onlinerdquo

ldquoI buy digestive enzymes multivitamins cough drops coconut manna coconut oilrdquo

ldquoVitamin Shoppe is close by I prefer Vitamin Shoppe over the other competitors Vitamin Shoppe has a lot of vegan choices which are hard to find at other storesrdquo

ldquoI feel like Vitamin Shoppe has more of what I need The other stores cater to bodybuildersrdquo ldquoThe Vitamin Shoppe stores always have employees willing to help Sometimes they are knowledgeable and

sometimes not so muchrdquo

50-year-old woman in San Diego This sourcersquos spending at Vitamin Shoppe is up because she has cut back on trips to competitors She shops at Vitamin Shoppe three or four times a year She likes that items are in stock products are easy to find and the sales clerks do not pressure her She also shops at Amazoncom based on price

ldquoI shop at Vitamin Shoppe about the same as last year I shop there maybe three or four times a yearrdquo

ldquoI am probably spending more at Vitamin Shoppe because I do not shop as much at other vendors nowrdquo

ldquoVitamin Shoppe generally has what I am looking for easy-to-find products and low-pressure salespeople who quickly help me find what I am looking forrdquo

ldquoVitamin Shoppe usually has bigger shops than its competitors and is less intimidating than the other storesrdquo

ldquoI also shop at Amazoncom It is often cheaperrdquo ldquoI buy specialty items that I cannot find at the regular pharmacymdasha

specific vitamin or minerals extracts homeopathic productsrdquo ldquoSometimes I will look items up online but buy at a store if it is an item I need right away I do not like to pay for

shipping and waitrdquo

50-year-old Orange County woman This source is spending more now as the amount of supplements she is taking has increased She shops at Vitamin Shoppe about once a month and expects her shopping habits to remain the same this year She likes Vitamin Shoppesrsquo reward system variety of products and convenient locations She does not shop online at VitaminShoppecom

ldquoI am spending more now as the amount of supplements I take has increasedrdquo

ldquoI am shopping at Vitamin Shoppe about the same as last year once a monthrdquo

ldquoI buy B and C vitamins and various other supplementsrdquo ldquoThe points where you accrue for discounts and the variety of vitamins

as well as convenient location keep me going to the Vitamin Shopperdquo ldquoI never have shopped on Vitamin Shoppersquos websiterdquo ldquoI probably can get vitamins cheaper at Wal-Mart but they do not have

as many brands to choose fromrdquo

Vitamin Shoppe is close by I prefer Vitamin Shoppe over the other competitors Vitamin Shoppe has a lot of vegan choices which are hard to find at other stores

Customer Vitamin Shoppe New York

Sometimes I will look items up online but buy at a store if it is an item I need right away I do not like to pay for shipping and wait


I probably can get vitamins cheaper at Wal-Mart but they do not have as many brands to choose from

Customer Vitamin Shoppe Orange County CA


Vitamin Shoppe Inc

ldquoI only shop at the Vitamin Shoppe for vitamins and supplementsrdquo

56-year-old woman in Los Angeles This sourcersquos shopping frequency at Vitamin Shoppe has increased slightly and she spends about $20 more each trip year to year She shops at Vitamin Shoppe about six times a year She likes the location the parking and the knowledgeable staff She often is surprised that she is the only customer in the store whenever she visits

ldquoI am shopping more now than in previous years This year I will shop at Vitamin Shoppe probably a little bit more just because I am getting older I am at Vitamin Shoppe probably six times a yearrdquo

ldquoI spend probably a little bit more about $20 a trip at Vitamin Shoppe compared to last year because I am getting more stuff than in years pastrdquo

ldquoI buy magnesium zinc calcium vitamin D and K and omega but the omegas are for my dogrdquo ldquoThe proximity to my office keeps me loyal to Vitamin Shoppe and the fact that they have a parking lotrdquo ldquoThe employees at Vitamin Shoppe are more knowledgeable at least in the two stores that I go to The only

other exclusive vitamin outlet that I used was mail order only Puritanrsquos [Pride Inc] I like the fact that Vitamin Shoppe is a brick-and-mortar store that I can go in I also shop at Whole Foodsrdquo

ldquoI am constantly amazed because I am usually the only customer whenever I go to Vitamin Shopperdquo ldquoI do not shop online on Vitamin Shoppersquos websiterdquo

30-year-old man in Dallas

This source is spending about 5 more at Vitamin Shoppe because of a price increase He bought a 5-pound jar of Elite Whey Chocolate ($5049) and was familiar with the store associate He shops exclusively in-store based on price and customer service and spends about $100 a month

ldquoIrsquom spending a little bit more this year but not muchmdashmaybe 5 more Mostly itrsquos because the price just went uprdquo

ldquoI donrsquot want the trouble of shopping online Irsquod rather come over here and pick out my product If Irsquom confused I ask the staff and they explain it to merdquo

ldquoIrsquove been coming to this store for two years maybe three Thatrsquos once or twice a week GNCrsquos too expensive You get better customer service here than you can over thererdquo

ldquoI use the whey protein after my workout and the PreSurge before my workoutrdquo

California woman in her early 60s Spending has increased only because of a price hike on her favored soap product which she cannot find elsewhere She would switch to another retailer if it had the same product for less

ldquoIrsquom spending more I suppose because the prices have gone up a bit But Irsquom not buying more products and I donrsquot intend to because I think their products are overpriced and in many cases unnecessaryrdquo

ldquoIrsquove been going to the same Vitamin Shoppe for about five years I only go about just twice a year to buy African black soap Every once in a while I buy a vegan fish supplement But that is it I only go to the store when Irsquom in the area and out of the soaprdquo

ldquoIrsquove tried real bars from Africa and also an online product but the Vitamin Shoppe soap is better If I found the same soap or another soap online for less Irsquod buy there insteadrdquo

ldquoI donrsquot buy anything online at Vitamin Shopperdquo

Kansas City KS man in his mid-30s This source hopes to increase his visits to Vitamin Shoppe and to the gym this year He mostly buys Nitric Oxide for preworkout energy and spends about $400 to $500 per year at Vitamin Shoppe He switched from GNC to Vitamin Shoppe two years ago because of convenience and customer relations He buys nothing online though he buys lower-priced vitamins at Wal-Mart

ldquoIrsquove been going to Vitamin Shoppe for about two years after I quit shopping at GNC I spend about $400 to $500 a year there I hope Irsquoll buy more because that will mean Irsquom working out more and will need itrdquo

ldquoI donrsquot buy anything online and I donrsquot look at their website I donrsquot like to buy online in case I want to return itrdquo ldquoVitamin Shoppe is walking distance to where I work so it is easier to go there GNC is farther away Also I had a

bad experience with a GNC employee who was not at all friendlyrdquo ldquoThe manager at the Vitamin Shoppe is really helpful and customer-friendly I went there with a coupon once

that expired and he honored it anywayrdquo


Vitamin Shoppe Inc

ldquoI buy green tea fish oil pills and zinc pills at Wal-Mart It is much cheaper than Vitamin Shoppe The fish oil pills are almost $10 at Vitamin Shoppe and half that much at Wal-Martrdquo

55-year-old man in Hawaii

This source expects to shop at Vitamin Shoppe more often this year as he wants to get back in shape Also it carries a product he could not find elsewhere His last visit to the store was about six months ago and he likes the location and the variety of products He also purchases items from GNC

ldquoI will shop more at Vitamin Shoppe this year I need to get back in shaperdquo

ldquoI was spending less at Vitamin Shoppe than a year ago because my routine was thrown off I am going to change thatrdquo

ldquoVitamin Shoppe did have a particular Salba seed that others did not haverdquo

ldquoVitamin Shoppe compares favorably to its competitors due to the good variety and helpful staffrdquo ldquoI shopped at Vitamin Shoppe about six months ago I shop there because of the convenient location and good

varietyrdquo ldquoI do not shop on Vitamin Shoppersquos websiterdquo ldquoGNC is a strong competitor They have more locations branding marketing with discountsrdquo

Dallas woman in her 50s

This source visited Vitamin Shoppe on the recommendation of a friend because she was looking for a specific product She liked the prices and will return to shop for other supplements She does not shop for supplements online

ldquoI normally shop at HerbMart but they didnrsquot have Sensa My friend suggested we try Vitamin Shoppe and Irsquom happy we came over hererdquo

ldquoOther than this I buy Omega-3s and the cinnamon supplements Irsquod come back to shop for them next timerdquo

ldquoI didnrsquot check online I didnrsquot even talk to anybody inside the store It didnrsquot take long to find what I was looking for and the Sensa was on the shelf in the Weight Management sectionrdquo

ldquoThe price was reasonable and I got what I was looking for This will last for a couple of months Eighty-five dollars isnrsquot too much to spend if it works for merdquo

Chicago woman in her 40s

This sourcersquos initial visit was favorable and will lead to more purchases She prefers the in-person experience especially when shopping for vitamins and supplements She generally purchases them at Whole Foods

ldquoThis is my first time in this Vitamin Shoppe store They have a better and larger selection than Whole Foods but that is what I would expect The staff seems friendly and helpful Irsquod come backrdquo

ldquoOnline shopping is here to stay It is just not for me I prefer the store experience I donrsquot see that changing I prefer to see the product read the label compare it to others on the shelves and so onrdquo

ldquoI am looking at dietary supplements and some B vitamins todayrdquo ldquoI typically purchase my vitamins and supplements at Whole Foods I

am shopping there anyway so I pick them up I have been happy with the quality and productsrdquo

ldquoI sometimes rely on the staff at Whole Foods for recommendations They are pretty good about it and knowledgeable I tend to stick with what I knowrdquo

San Francisco Bay Area woman in her late 20s

Vitamin Shoppe did have a particular Salba seed that others did not have

Customer Vitamin Shoppe Hawaii

I normally shop at HerbMart but they didnrsquot have Sensa My friend suggested we try Vitamin Shoppe and Irsquom happy we came over here hellip Irsquod come back to shop for them next time

Customer Vitamin Shoppe Dallas

This is my first time in this Vitamin Shoppe store They have a better and larger selection than Whole Foods but that is what I would expect The staff seems friendly and helpful Irsquod come back

Customer Vitamin Shoppe Chicago


Vitamin Shoppe Inc

After a favorable first visit to Vitamin Shoppe this source is likely to return more frequently She visited the store after conducting a search on Yelp for a certain product She is not likely to shop online for VMS products

ldquoI was looking to purchase Chia seeds I was in the area running errands and searched on Yelp for a location that carried Chia seeds The nearest and first store I went to didnrsquot have the product So I went to the next closest location it happened to be the Vitamin Shopperdquo

ldquoI now plan to visit the Vitamin Shoppe located closer to where I liverdquo ldquoI most likely will not shop online Irsquod rather see the product in personrdquo

45-year-old Los Angeles man

This source is increasing his purchases with VitaminShoppecom because he has found the products he likes Vitamin Shoppersquos rewards program is beginning to pay off but is not prompting him to be exclusive in his VMS shopping

ldquoIrsquoll probably start buying more online Irsquove found products I like and I can just get on a routine of buying them consistentlyrdquo

ldquoRight now maybe 30 of my shopping is done onlinemdashon Vitamin Shoppersquos websiterdquo ldquoI like to buy about four times a year Every three months I spend about $300 to $350rdquo ldquoThe one thing I like about Vitamin Shoppersquos website is that the dropdown bar lets you lsquoshop by brandrsquo or lsquoshop

by health problemrsquo I always look online before going to the storerdquo ldquoI choose to shop in the store because itrsquos right next to the grocery store I go tordquo ldquoIt doesnrsquot matter to me where I get my vitaminsmdashonline at the vitamin store or at a grocery storerdquo ldquoVitamin Shoppersquos prices are lower than GNCrsquos for sure Also Irsquom a member of their rewards program Normally I

donrsquot buy into programs like that but last year I got a nice certificaterdquo ldquoI probably spend about 60 to 70 on protein powder and the rest on vitaminsrdquo ldquoI usually have a couple of questions to ask the managers usually about new productsrdquo ldquoIrsquoll try maybe one new product each year When I find something I like I stick to itrdquo

50-year-old woman in Chicago

This sourcersquos spending has remained the same year to year She has shopped at Vitamin Shoppe for a decade drawn to its service and affordable high-quality private-label products Nearly 90 of her vitamins and supplements are purchased at Vitamin Shoppe while 10 are from Whole Foods She primarily uses Vitamin Shoppersquos website for research and only orders online if free shipping is being offered

ldquoI shop at the Vitamin Shoppe for 90 of my vitamins and supplements and 10 at Whole Foods but they are more expensive so I donrsquot do it unless they are carrying a specific brand that the Vitamin Shoppe does not carryrdquo

ldquoI prefer to come into the store so I can read the labels and information closely With the Internet I need to print out all the information so I can read it carefully I would rather just come into the storerdquo

ldquoI come to Vitamin Shoppe because they have high-quality vitamins Their store-brand quality is as good as most that are priced higherrdquo

ldquoThe customer service here is also excellent They are so helpfulrdquo ldquoI have been shopping here for at least a decaderdquo ldquoI have been to their website many times but donrsquot purchase very often from there---only if they are offering free

shipping Otherwise I just use it to research their productsrdquo California man in his early 20s

This man expects his Vitamin Shoppe purchases to remain steady this year and prefers the companyrsquos protein powder He shops at the store every few months

ldquoIrsquove been coming here for about a year to buy protein powder because Irsquove started bodybuilding I come every couple of months just to buy the powder Thatrsquos all I buy But itrsquos the place to come for this stuffrdquo

California man in his early 50s

This sourcersquos visits will remain consistent this year He has been loyal to Vitamin Shoppe for the last eight years because it carries wheat germ oil which he now buys from VitaminShoppecom in larger quantities If not for this product he

I come to Vitamin Shoppe because they have high-quality vitamins Their store-brand quality is as good as most that are priced higher



Vitamin Shoppe Inc

would not shop at Vitamin Shoppe He buys vitamin supplements for less at Trader Joersquos and Costco His wife recently started buying VMS products through Vitacostcom

ldquoIrsquove tried many brands of wheat germ oil but the one Vitamin Shoppe has is the best If it wasnrsquot for their wheat germ oil I wouldnrsquot be shopping there at all Irsquove been buying from Vitamin Shoppe since around 2005rdquo

ldquoI buy a large quantity of wheat germ oil from Vitamin Shoppe online every seven or eight months because I can get larger quantities online compared to in the storerdquo

ldquoIf I need any vitamin supplements I typically buy from Trader Joersquos or Costco because prices are lower My wife is also starting to purchase more items online at Vitacostcomrdquo

27-year-old woman in New York City

This source will spend the same amount this year approximately $10 a month on private-label Biotin vitamins She likes Vitamin Shoppersquos membership discounts convenient locations customer service and broad selection The only drawbacks are the small size and selection of certain Vitamin Shoppe stores She does not shop online for VMS products

ldquoI started going to Vitamin Shoppe on a monthly basis about a year and a half ago when I began taking Biotin Prior to that I didnrsquot go at allrdquo

ldquoI spend about $10 a month buying store-brand Biotin at the Vitamin Shoppe a few blocks from my apartmentrdquo ldquoVery occasionally I buy random things like herbal cold remedies but I donrsquot remember what kindrdquo ldquoThe first time I bought Biotin from Vitamin Shoppe I asked for help from the staff but now I donrsquot really need

their advice They do seem very friendly and knowledgeablerdquo ldquoI prefer to shop in-store just because itrsquos so close to my apartment I donrsquot usually have questions but itrsquos nice

to know that if I do I can get it answered by employees in the storerdquo ldquoWhat has really cemented my loyalty to Vitamin Shoppe over competitors is the rewards card that gets me

discounts after a certain number of purchasesrdquo ldquoI never shop for vitamins online I donrsquot expect that to change in the coming years Irsquom not a big online shopper

in generalrdquo ldquoI think Vitamin Shoppe is far better than any of its competitors mainly because it seems geared to everybody

not just hardcore athletes and bodybuilders like at GNC It is definitely not intimidating in any wayrdquo ldquoAnother thing I like about Vitamin Shoppe is the wider selection including beauty products and food bars that

you canrsquot get at GNCrdquo ldquoThe one thing that I have heard bothers some people about Vitamin Shoppe is that certain locations are really

small and you canrsquot always find what yoursquore looking forrdquo

California woman in her early 30s Store visits and spending are static because this sourcersquos husband buys the same protein powder every few months

ldquoI came here because my husband asked me to buy some protein powder for him He says he is trying to get stronger He comes here because they have a good selectionrdquo

ldquoHe buys the powder about every couple of months Irsquod say we spend under $50 each visitrdquo ldquoI bought some Arnica gel today because I have an injuryrdquo

40-year-old man in Chicago

This source expects his visits and spending to remain the same in 2013 For the last four years he has shopped only at Vitamin Shoppe and goes a few times a week He mainly gets protein bars and drinks spending less than $10 per visit He shops in Vitamin Shoppe stores 75 of the time and through the companyrsquos website the other 25 He also uses the website for research

ldquoI love Vitamin Shoppe They have the best customer service I have ever seen I often recommend the store to my friendsrdquo

ldquoI have been shopping here twice a week for four years Thatrsquos not changing I donrsquot go to Whole Foods or Targetrdquo

Irsquove tried many brands of wheat germ oil but the one Vitamin Shoppe has is the best If it wasnrsquot for their wheat germ oil I wouldnrsquot be shopping there at all

Customer Vitamin Shoppe California

I love Vitamin Shoppe They have the best customer service I have ever seen I often recommend the store to my friends



Vitamin Shoppe Inc

ldquoI look online at their site to see what is on sale and then I come into the store to purchase itrdquo ldquoI generally get protein bars and protein shakes but I also purchase all my vitamins and supplements hererdquo ldquoI do shop at their online site 25 of the time It has great research information and is convenientrdquo ldquoThis location is near my work but the other I shop at is near my houserdquo ldquoI tried GNC but I was not satisfied with them Their selection is limited and prices are highrdquo ldquoOver time more and more people will be buying online If you can get free shipping and know what you want

why come into the storerdquo

43-year-old Seattle woman This source is shopping with the same frequency and spending the same amount as the year before She shops at Vitamin Shoppe every three to four months and buys melatonin and vitamins She also shops at Walgreens and Rite Aid Corp (RAD) but said Vitamin Shoppe staff offer superior product knowledge

ldquoI buy melatonin and vitamins I like their brand of melatonin and want to keep using the same brand to make sure that the dosage stays the same It can vary from brand to brandrdquo

ldquoI never shop online at Vitamin Shoppe since there is a store close to my houserdquo ldquoI have bought vitamins in places like Rite Aid and Walgreens As long as you know what you need that is fine I

suppose at Vitamin Shoppe you can get more specialized advicerdquo

Los Angeles woman in her mid-20s This sourcersquos monthly visits and $25 spending on vitamins will not change in 2013 She maintains her loyalty to Vitamin Shoppe from the days when she would go with her parents Shipping costs deter her from shopping online

ldquoIrsquom a once-a-month shopper Irsquom a pretty routine buyer I spend about $25 a monthrdquo

ldquoItrsquos where my parents shopped That gives me a reason to be loyal I donrsquot consider going to other storesrdquo

ldquoVitamin Shoppe has always had what I need so Irsquove always stayed loyalrdquo

ldquoThis store is five minutes from my apartmentrdquo ldquoI donrsquot buy any vitamins online but Irsquoll get there eventuallyrdquo ldquoI donrsquot want to pay shipping costsrdquo ldquoI buy fish oil general vitamins and thatrsquos about itrdquo ldquoI donrsquot rely on Vitamin Shoppe staff every trip like I used to but theyrsquore always willing to helprdquo

Los Angeles woman in her 30s

This sourcersquos visits and spending will not change this year but she is a loyal Vitamin Shoppe customer based on price However she is frustrated with the storersquos inconsistent inventory levels She does not shop at GNC because of its emphasis on private-label brands

ldquoI am shopping at Vitamin Shoppe and using its website about the same number of times as a year agordquo

ldquoI shop on Vitamin Shoppersquos website but not that often and about the same as last year I buy supplements onlinerdquo

ldquoI am spending about the same as last yearmdash$1000 a yearrdquo ldquoVitamin Shoppe still has the best prices Itrsquos better than competitors

Price keeps me somewhat loyal to Vitamin Shopperdquo ldquoI also shop at Whole Foods and Sprouts but Vitamin Shoppe is my

first choice because they are the cheapest Whole Foods is 20 higher on averagerdquo

ldquoI do go to competitors because Vitamin Shoppe is constantly out of things There is never enough stock there They even advertise products in the store on TVs and then they do not have the product in stock It makes me go to another store like Whole Foodsrdquo

ldquoI do not shop in GNC because it is exclusively their own brandrdquo ldquoVitamin Shoppe promotes its own products but it is a small percentage of what they have in the storerdquo

Vitamin Shoppe has always had what I need so Irsquove always stayed loyal

Customer Vitamin Shoppe Los Angeles

I do go to competitors because Vitamin Shoppe is constantly out of things There is never enough stock there They even advertise products in the store on TVs and then they do not have the product in stock



Vitamin Shoppe Inc

ldquoAt Vitamin Shoppe I buy mostly nutritional supplements some health and beauty products I will buy some natural facial care that I like at Vitamin Shoppe and protein powdersrdquo

51-year-old Boston woman

Visits to Vitamin Shoppe will stay the same this year as last year The source has had only positive experiences at Vitamin Shoppe and with its staff She shops at Vitamin Shoppe about three times annually primarily for homeopathic items She also shops on Amazoncom for health-related products

ldquoI am shopping at Vitamin Shoppe the same as last year about three times a year and spending the same amount Mainly I go there for the homeopathic itemsrdquo

ldquoI have only had really positive experiences Vitamin Shoppe has a handy location and the people who work there are always really nice or knowledgeable It is very personalized If you ask them a question they are very helpfulrdquo

ldquoI guess Whole Foods would be the only competitor and they are not very closerdquo ldquoI also shop on Amazoncom sometimes for health-related productsrdquo ldquoI have never shopped on Vitamin Shoppersquos websiterdquo

San Jose woman in her early 60s

This sourcersquos occasional trips to Vitamin Shoppe will continue at their current pace She also shops at Sprouts where she can purchase similar products as well as produce Today she bought herbal remedies for a cold

ldquoI like Vitamin Shoppe because I can go in and buy everything I want I usually come in to buy Creatine powder I use it as a booster to my diet But today Irsquom here because Irsquom sick Irsquove bought eucalyptus oil Xylitol gum and willow barkrdquo

ldquoI also shop at Sprouts itrsquos nice because it also has produce Today I went out of my way to come hererdquo

Dallas woman in her 20s Spending and visit frequency will remain consistent She regularly purchases vitamins and protein powder here Product quality and customer service are key factors in her purchasing decisions She does not shop for vitamins online and prefers to call on the expertise of personnel at this store

ldquoIrsquove been buying vitamins and protein powder here for a couple of years now I like it better than GNC Theyrsquore friendlier here and therersquos more variety Vitamin Shoppe has the all-natural products and the detox cleanser that I likerdquo

ldquoI like shopping in-store better I donrsquot ever buy online Because if I have questions about what Irsquom looking for theyrsquore able to answer here I canrsquot get those answers onlinerdquo

ldquoToday I got the amino energy [Optimum Nutrition 270 grams $1999] Itrsquos for pre-workout and it provides energy as I go through my fitness routinerdquo

ldquoI was just here yesterday and I spent $60 on protein powder and detox Today I spent $20 Before that I was here a couple of months ago So I probably spend $150 a month on vitamins detox and protein powder The amount varies It depends on whether I need the detox that month or if I need to buy more vitaminsrdquo

58-year-old woman in Portland OR

Spending patterns will remain stable Shopping predominantly online the source orders from Vitamin Shoppe consistently once or twice a year and buys enough to maximize her savings and the shipping costs She typically buys Mountain Ocean products from Vitamin Shoppe She likes VitaminShoppecomrsquos quick and safe shipping and reasonable prices She also shops at Whole Foods and will begin shopping on Amazoncom for similar products

ldquoI am spending probably about the same as a year ago at Vitamin Shoppe because I always buy the same thingrdquo ldquoI shop on VitaminShoppecom once or twice a year That has not changedrdquo ldquoI buy one product and try to order to maximize my savingsshipping costsrdquo ldquoI buy Mountain Ocean products from Vitamin Shopperdquo ldquoI like Vitamin Shoppersquos quick ship reasonable costs and my product arrives intactrdquo

I like shopping in-store better I donrsquot ever buy online Because if I have questions about what Irsquom looking for theyrsquore able to answer here I canrsquot get those answers online



Vitamin Shoppe Inc

ldquoVitamin Shoppe is easy to shop and order from and I like thatrdquo ldquoThis year I will probably shop the same as last year at Vitamin Shoppe as long as they are competitiverdquo ldquoFor the same products I also shop at Whole Foods and Amazonrdquo

Late 50s woman in Atlanta

She expects to continue her twice a month trips to Vitamin Shoppe based on price spending $25 to $30 each visit She has never visited Vitamin Shoppersquos website and would like begin shopping online more often

ldquoI may start shopping online in the next 12 months That would be the only changerdquo

ldquoNormally when I go to Vitamin Shoppe I spend $25 to $30 each time I shop Thatrsquos most likely to stay the samerdquo

ldquoVitamin Shoppe is less than 5 miles from my houserdquo ldquoI buy vitamins minerals and supplements twice a monthrdquo ldquoVitamin Shoppe has good prices compared to the competition Their

products are lower than mostrdquo ldquoI choose shopping in the Vitamin Shoppe store over online because I

like to compare see the product and see whatrsquos on the shelf I want to hold it in my handrdquo

ldquoOne hundred percent of my purchases are in-storerdquo ldquoMore than likely I would buy vitamins if I were to shop onlinerdquo

39-year-old man in New York

This source is spending the same amount at Vitamin Shoppe this year but is shopping less frequently because he is buying his items in larger quantity Vitamin Shoppe has a great staff and is conveniently located He buys protein shake powders multivitamins and vitamin C He does not shop online but uses the sites for research He also shops at GNC Trader Joersquos and Whole Foods

ldquoI am shopping at Vitamin Shoppe less than last year but spending the same I started to buy my products in larger quantityrdquo

ldquoI choose to shop at Vitamin Shoppe because it is conveniently located near my home and officerdquo ldquoThe experience at Vitamin Shoppe is level to other competitorsrdquo ldquoVitamin Shoppe has a great staff for the most partrdquo ldquoI buy protein shake powder multivitamins for men vitamin Crdquo ldquoI do not shop online I like to touch the products and will use online to research specific products I want to learn

aboutrdquo ldquoI use the Vitamin Shoppe site to gain information not for buying productsrdquo ldquoI also shop at GNC Trader Joes and Whole Foodsrdquo

33-year-old man in Kansas City MO

This sourcersquos purchases at Vitamin Shoppe are declining because money is tight However he will shop there again later this year when he is done with school He has not used VitaminShoppecom

ldquoI love the Vitamin Shoppe I went there quite a bit but stopped about five months ago only because I am going to school now and donrsquot have a lot of money I finish in November and plan to shop there again after thatrdquo

ldquoIrsquod spend $40 or $50 a month Usually I would buy the testosterone booster some fish oil pills and other vitaminsrdquo

ldquoWhat I liked about Vitamin Shoppe is their customer service You walk in there and they always greet you with a smilerdquo

ldquoI know that vitamins may cost less at other stores but that doesnrsquot bother me I like the Vitamin Shopperdquo

ldquoI used to go to GNC but like the Vitamin Shoppe and their people morerdquo

ldquoIrsquove never gone to their website or shopped onlinerdquo ldquoGoing to the store would be better than buying online because you

have someone right there I like thatrdquo

I choose shopping in the Vitamin Shoppe store over online because I like to compare see the product and see whatrsquos on the shelf I want to hold it in my hand

Customer Vitamin Shoppe Atlanta

I love the Vitamin Shoppe I went there quite a bit but stopped about five months ago only because I am going to school now and donrsquot have a lot of money I finish in November and plan to shop there again after that

Customer Vitamin Shoppe Kansas City MO


Vitamin Shoppe Inc

ldquoWhen I start going to Vitamin Shoppe again I will probably buy some additional things maybe vitamin E pillsrdquo Los Angeles man in his mid-30s

This source expects his visits to Vitamin Shoppe to remain consistent and appreciates the convenient locations He shops more on impulse but does not buy VMS products online

ldquoI shop for VMS products once every three months I spend between $60 and $100 each time This store happens to be really close to my houserdquo

ldquoI donrsquot necessarily choose Vitamin Shoppe over others I donrsquot really have loyalty to any one place to buy vitamins Irsquoll buy vitamins anywhere Itrsquos usually just when I think about it or when itrsquos convenientrdquo

ldquoThere arenrsquot any products at Vitamin Shoppe that keep me here instead of shopping somewhere elserdquo ldquoVitamin Shoppersquos online site is just like any other I see what I want to buy before going to the storerdquo ldquoFifty percent is on sports nutrition stuff and the other half is spent on vitamins and mineralsrdquo ldquoI rely on the store people if Irsquom trying something newrdquo ldquoIrsquoll try maybe two to three new products a year Itrsquos the only way to find the one you really likerdquo

62-year-old Los Angeles woman

This source has been shopping at Vitamin Shoppe less often this year and is spending less because of her travels Her spending levels will rise again once she returns to the United States Vitamin Shoppersquos nutritional yeast flakes keep her loyal to the store as do the quality of the products and the prices She rarely shops online She prefers Vitamin Shoppe but sometimes shops at Whole Foods and Wild by Nature She would like Vitamin Shoppe to carry more holistic pet lines

ldquoI am shopping at Vitamin Shoppe a little less than last year I have been traveling for the last 10 months Once I return my shopping will return to past levelsrdquo

ldquoI am spending less than last year about $150 I am outside the USA nowrdquo

ldquoNutritional yeast flakes keep me loyal to Vitamin Shoppe versus stores such as Whole Foods This is due to the quality carried and also price I also like my vitamins naturalmdashno additives like Costco vitaminsrdquo

ldquoI like Vitamin Shoppe better than its competitors I like the variety and pricerdquo ldquoRarely do I shop online at Vitamin Shoppersquos siterdquo ldquoI would like Vitamin Shoppe to carry more holistic pet lines The variety is a little poorrdquo

New York City man in his 40s

This source is shopping less at Vitamin Shoppe because his new gym is located closer to a GNC store He has no loyalty to either company He buys protein shakes at brick-and-mortar retailers for on-the-go convenience but prefers shopping for Creatine and protein mix at a wholesale website that offers lower prices and his favorite brand Beverly International His store-versus-online shopping for VMS products is 60ndash40 but he would like to shop more online to save money

ldquoI buy my protein shakes at whatever store is close by For me the only real factor is conveniencerdquo ldquoI havenrsquot really noticed a difference in price of protein shakes between Vitamin Shoppe and GNCrdquo ldquoI spend about $120 a month on protein shakes which I mainly buy at stores I also spend about $20 a month

online on Creatinerdquo ldquoMy favorite Creatine brand is Beverly International which I have only found onlinerdquo ldquoAbout 60 of my VMS purchases are done in stores and 40 is online But I would like to start doing more

shopping online because itrsquos cheaper I could probably save about $40 a month if I shopped exclusively onlinerdquo ldquoI do almost all of my online shopping at WholesaleSupplementStorecom hellip I recommend that site to my

students as wellrdquo ldquoI donrsquot ever look at Vitamin Shoppe or GNCrsquos websiterdquo

54-year-old woman in Southern California

This source is shopping 60 to 70 less at Vitamin Shoppe than a year ago because of a recent move and she does not shop at VitaminShoppecom She also shops at Whole Foods and CVS but does not really view them as competitors She prefers Vitamin Shoppe because the staff is well educated and helpful and the inventory levels are sufficient

Nutritional yeast flakes keep me loyal to Vitamin Shoppe versus stores such as Whole Foods This is due to the quality carried and also price



Vitamin Shoppe Inc

ldquoI am shopping at Vitamin Shoppe about 60 to 70 less than a year ago primarily because I have moved to the next town over and it is not as convenient I donrsquot see that changingrdquo

ldquoI do not shop on Vitamin Shoppersquos websiterdquo ldquoI buy multivitamins and vitamin D and then I am constantly on the

quest for the new magic pill that will make the weight go awayrdquo ldquoI also shop at Whole Foods and the local CVS I do the majority of my

shopping at Vitamin Shoppe but when I cannot get there or if they do not have something I go elsewhererdquo

ldquoI find that at Vitamin Shoppe there are more people available to help me with specific issues At Whole Foods I may often have to track somebody downrdquo

ldquoOverall Vitamin Shoppersquos inventory is exceptional much higher than anyplace else and the staff is very well informed and that is importantrdquo

ldquoI would like to see one of their locations in my area given the price of gasrdquo

28-year-old man in New York City This source has cut his VMS purchases in half after a move left him farther away from retail stores Although Vitamin Shoppe has better customer service he prefers GNCrsquos more convenient locations He now predominantly buys online for the convenience price and larger quantities He spends about $55 a month at Amazoncom and Bodybuildingcom The one product he still buys in stores is protein mix because shipping fees make the hefty tubs too costly

ldquoFor in-store shopping I prefer GNC because they tend to be more conveniently located for me The downsides of GNC stores Some of the employees donrsquot know what theyrsquore talking about and they sometimes push you to get things you donrsquot needrdquo

ldquoVitamin Shoppe is just not as convenient and I donrsquot really care for Vitamin Shoppe brand products they have never seemed to work for me On the positive side the stores have a very wide selection and the staff is knowledgeable and helpful without being overbearingrdquo

ldquoIrsquom not located near any VMS stores which is why I have scaled back my purchases of protein mix to once every two months wherever it happens to be convenientrdquo

ldquoCurrently Irsquom doing 85 to 90 of my VMS shopping online and I expect that to continue throughout this yearrdquo

ldquoPeople who are new to fitness will go to the stores because they have questions But people who have been in the game for a while and know what they are looking for like me tend to just buy online because itrsquos more convenient and usually cheaperrdquo

ldquoThere are two products I order online every month [Promera Sportsrsquo] Con-Cret for about $25 and Scivation Xtend for $30 I prefer buying online because the prices are lower and those two items are small so there is little if any shipping costrdquo

ldquoI mainly buy from Amazoncom and Bodybuildingcom because they tend to have lower prices than stores or other websitesrdquo

ldquoI canrsquot say I ever really go to Vitamin Shoppersquos websiterdquo ldquoThe one type of product I still buy in stores is protein mix hellip They come in these big tubs so theyrsquore heavier and

cost more to shiprdquo

New York City woman in her 50s This source has drastically reduced her shopping at Vitamin Shoppe this year spending only $30 compared with $80 a month last year She is dismayed that Vitamin Shoppe displays its own brands more prominently She shops at a few competitor stores and some higher-end pharmacies She expects her shopping habits to remain the same this year

ldquoI am shopping at Vitamin Shopping less now I used to go about once a week and now I go in once a month Even though it is pleasant in there I find that all of their private-label products are very highly displayed so it is hard to find other specific brandsrdquo

I am shopping at Vitamin Shoppe about 60 to 70 less than a year ago primarily because I have moved to the next town over and it is not as convenient

Customer Vitamin Shoppe Southern California

People who are new to fitness will go to the stores because they have questions But people who have been in the game for a while and know what they are looking for like me tend to just buy online because itrsquos more convenient and usually cheaper



Vitamin Shoppe Inc

ldquoI am spending less now at Vitamin Shoppe than I did a year ago Last year I spent $80 a month and spent $20 each time Now I spend $30 a monthrdquo

ldquoI do really like the Vitamin Shoppe aloe juice and I buy that regularlyrdquo ldquoI have never shopped on the Vitamin Shoppe websiterdquo

43-year-old Phoenix woman

This source prefers Vitacost over Vitamin Shoppe for the pricing and selection but shops at Vitamin Shoppersquos brick-and-mortar store during the summer when products may melt She also shops at Amway Trader Joersquos and Costco

ldquoI am shopping less than last year at Vitamin Shoppe There is better pricing and a broader selection at Vitacostrdquo

ldquoIn the past I have purchased multivitamins essential fatty acids lutein from Vitamin Shopperdquo

ldquoI buy from Vitamin Shoppersquos brick-and-mortar store during the summer when it is too hot to order products they melt during shipping But more often I buy from Vitacost as my online vitamin outlet because of more options and better pricingrdquo

40-year-old woman in Maine

This source refuses to shop at Vitamin Shoppe again because of a negative experience using its online site Vitamin Shoppersquos prices are competitive but not enough to renew her loyalty to the company She now plans to shop through iHerb Inc and Vitacost

ldquoI am not shopping at Vitamin Shoppe anymore Customer service is everything to me and I was treated horriblyrdquo

ldquoI shopped online once because I did not want to drive an hour to the store The experience of the online sale ruined everythingrdquo

ldquoVitamin Shoppersquos price is competitive but the customer service was just too bad to keep merdquo ldquoI now shop at iHerb Vitacostrdquo

4) EXECUTIVES WITH VITAMIN SHOPPErsquoS OFFLINE COMPETITORS Three of the four sources who commented said their sales traffic and spending have increased so far in 2013 year to year Two of the three categorized these increases as 10 to 15 while the third said online sales have grown 150 for each of the last three years and are now the companyrsquos focus The fourth source said traffic and sales have declined in the single digits as more customers shift online in search of discounts Two sources did not comment on their sales trends Three of the six sources do not have online sales using their websites only as information vehicles to direct customers back to their stores They said barriers to selling online include high operational costs and manufacturer restrictions imposed by the minimum advertised price (MAP) which forbids discounting of branded products Vitamin Shoppe is not viewed as a threat to these sourcesrsquo market share given the regional nature of this industry the niche each one serves and the loyal customers each competitor claims to have Vitamin Shoppe got more acclaim than GNC for its approach quality products fair pricing and knowledgeable staff Still sources said Vitamin Shoppe was spreading itself too thin in trying to take on GNC with sports nutrition its aggressive store expansion that includes Canada and an online strategy undifferentiated from its brick-and-mortar plan Two sources said Dr Oz significantly influences consumers and that sales spike after he recommends a product on his TV show Executive at a Western retail chain selling a broad spectrum of VMS and holistic remedies

This specialty chain is exceeding Vitamin Shoppersquos same-store sales growth Also the average customer ticket and store traffic have grown year to year Prospects for selling VMS online continue to challenge Vitamin Shoppe and other offline retailers that cannot match the deep discounts low shipping fees legal barriers governing VMS sales and technical agility of pure-play Internet VMS storefronts At the same time Vitamin Shoppersquos brick-and-mortar operations are overshadowed by a vast and growing field of smaller VMShealth food chains with greater expertise and a more comprehensive product selection Vitamin Shoppe may be spreading itself too thin broadening its body building lines to

I am shopping less than last year at Vitamin Shoppe There is better pricing and a broader selection at Vitacost

Customer Vitamin Shoppe Phoenix


Vitamin Shoppe Inc

combat GNC all while expanding into Canada where VMS is a more abundant commodity and often sold in well-established retailers

ldquoWe do much better than Vitamin Shoppersquos same-store sales increase of 6 We also have a much better and broader assortment of skin and body care products which are a very strong driver of customer traffic Our average transaction total per ticket is up roughly 30cent a transaction year to year Sales are up as well and slightly ahead of the industry average in terms of the VMS categoryrdquo

ldquoOur store traffic is up double digits over last year We also have a pharmacy in our stores so when we have a tough flu season as we did last year business really picks up Customers come in to fill prescriptions but more and more also are looking to buy natural medicines to support the efficacy of the medical compoundsrdquo

ldquoWe probably compete more with other retailers in the natural product category such as Sprouts Whole Foods and New Seasons We do not compete with GNC which is more of a mall storerdquo

ldquoVitamin Shoppe has not done well in our market because there is simply too much competition There is nothing terribly exciting about the merchandise in a Vitamin Shoppe Our stores employ highly trained individuals in the fields of nutrition herbal medicine and homeopathy Vitamin Shoppe just hires people off the street and then provides some trainingrdquo

ldquoWhat keeps customers loyal to Vitamin Shoppe The private-label brand I would imagine that Vitamin Shoppersquos private label is the chainrsquos best seller Private label is driven by price normally Private label should be 10 to 15 less than the cheapest brand in the storerdquo

ldquoVitamin Shoppe has a problem online one that we all have We are competing with pure-play online storefronts like iHerb and Vitacost which offer deep discounts Typically their discounts are the same across an entire brand Vitamin Shoppe online has variable discounts within a brand hellip iHerb may have a 25 across-the-board discount on all SKUs of a brand and Vitacost might knock 40 off all SKUs within the brand But if Vitamin Shoppe carries 60 SKUs of the brand they might sell 10 products at 20 off 30 at 15 off and 20 SKUs at 10 off They do that just for margin preservationrdquo

ldquoVitacost sales may be great online but they have negative net margin They may have $400 million in VMS sales but no profit just yet Vitamin Shoppe canrsquot do that because they really canrsquot afford to drag the whole ship down We struggle with the same issue online How do you make a profit when the customer is looking for the cheapest price There is no loyalty to a brand or a storefront onlinerdquo

ldquoMost brick-and-mortar retailers are having a hard time online because they are used to a different strategy and business model using their brick-and-mortar approach to operate online Most of the big successful VMS online retailers donrsquot have brick-and-mortar stores They have built their operations systems and infrastructure around online dynamicsrdquo

ldquoA large part of the problem with online sales is that customers often need advice on which product to take for any given condition The online format does not lend itself to that type of communicationrdquo

ldquoPart of that problem stems from the Dietary Supplement Health and Education Act of 1994 which spells out rules regarding the manufacture sale and labeling of dietary supplements It limits the ability of the seller to adequately market the use of the VMS MAPs also impose limits but they are good limits because discounting can be brutal out there Therersquos a bloody price war underway onlinerdquo

ldquoOur online initiative is very important to our board members and a growing part of our sales representing 8 of our retail sales at this point We are putting resources into the Internet It is cheaper than spending millions to open a new store so itrsquos becoming a large part of our businessrdquo

ldquoVitamin Shoppe has a very unusual assortment of products and in many cases they may only have one or two bottles on the shelf until you come to the protein powdersrdquo

We do much better than Vitamin Shoppersquos same-store sales increase of 6 hellip Our store traffic is up double digits over last year

Executive VMS amp Holistic Remedies Retail Chain

West

Vitamin Shoppe has not done well in our market because there is simply too much competition hellip Vitamin Shoppe has a problem online one that we all have We are competing with pure-play online storefronts like iHerb and Vitacost which offer deep discounts


West


Vitamin Shoppe Inc

ldquoVitamin Shoppe is increasingly trying to get into the GNC space selling sports nutrition supplements That means Vitamin Shoppe is moving away from their core VMS assortment Vitamin Shoppe is now caught between the two emerging sets of retailers GNC and sportsfitness supplement retailers and the holistic health and wellness retailers Vitamin Shoppe is getting squeezed on both ends of the spectrumrdquo

ldquoTheir expansion in Canada wonrsquot be easy One of the biggest challenges in that market is that they canrsquot use the term lsquoVitamin Shoppersquo because another very successful retailer is called The Vitamin Shop and has rights to the name Unlike the US market most of the VMS brands sold in Canadarsquos health and wellness mass market are distributed through pharmaciesrdquo

Manager of a small Midwestern health food and vitaminsupplement retail chain

Store traffic was up 10 to 15 in January and per-basket spending also rose 10 year to year Vitamin Shoppe attracts a customer more interested in sports nutrition and common vitamins for less but reportedly has not taken any market share from this source Vitamin Shoppersquos direct competitor is Complete Nutrition The sourcersquos online sales were unprofitable and have been discontinued the website and Facebook pages are maintained to offer coupons and educational material Dr Oz is noted for bringing increased attention to the VMS industry

ldquoWe have seen more customers coming in to the stores so far this quarter Itrsquos difficult to quantify but I would estimate that our traffic has increased by 10 to 15 year over year Things started to pick up last year Sundays are not as slow as a year ago In the past traffic was intermittent Now we seem to have a constant flow of people in the store and it seems full all the timerdquo

ldquoI would say the per-basket spend is up 10 year over year In January I noticed a difference in spending patterns In the fall of 2012 customers were buying just what they needed This year they have been buying what they want not just what they needrdquo

ldquoWe attribute the improved traffic to getting the word out through social media I hate to mention him but Dr Oz has definitely raised awareness of alternative treatments Our stores are always swarmed after one of his shows featuring natural and herbal supplements often drawing people the same dayrdquo

ldquoWe tried selling online but it didnrsquot work for us Itrsquos like having a whole different store and you have to have another staff person run it provide content and respond to viewers We do still have a website and each of our stores has a Facebook page We do get a lot of visitors to our websitemdashmostly people looking for information a phone number or a health productrdquo

ldquoVitamin Shoppe is in our immediate area and itrsquos been here for a few years When it first opened we saw a brief shift in traffic but things quickly leveled off We have seen no loss of customersrdquo

ldquoWe have not lost market share We donrsquot worry about the competition We are more of a hometown specialty health-food and supplement store so we share some customers but have a separate loyal following Vitamin Shoppe does not really compete with chains like Wal-Mart or Targetrdquo

ldquoVitamin Shoppersquos competition is from Complete Nutrition which is another sports supplement specialty shop that opened more recentlyrdquo

ldquoPeople might go to Vitamin Shoppe to buy something on sale and they might find some of the basics cheaper there But because we also are a grocery people can buy their food and vitamins hererdquo

Manager of a small VMS retail chain in Northern California

Foot traffic and store sales slipped in the single digits in January year to year likely because of Internet storefronts selling vitamins and supplements at a discount This source maintains a website to educate visitors promote products and drive traffic to the brick-and-mortar stores but not as a vehicle for sales Vitamin Shoppe has a reputation for selling quality branded VMS health and wellness products at attractive price points with knowledgeable staff while GNC appeals to consumers interested in weight loss and bodybuilding products and pushes its private label over alternatives

I would say the per-basket spend is up 10 year over year In January I noticed a difference in spending patterns In the fall of 2012 customers were buying just what they needed This year they have been buying what they want not just what they need

Manager Health Food amp VitaminSupplement Retail Chain

Midwest


Vitamin Shoppe Inc

ldquoWe actually have seen a slow and gradual downturn in foot traffic in the last few months compared to the same period last year Our numbers dropped January 2012 compared to January 2013 in the single digits People are spending less per shopping visitrdquo

ldquoPart of the slowdown may be because more people are going online to buy supplements Most go to other online websites for the lower pricesrdquo

ldquoOur website is not for purchasing products We use it as a communication platform to improve customer relations and to publicize prices sales coupons and to draw customers to the store Our focus is selling at the retail level But we have not ruled out the possibility of developing a more functional website down the roadrdquo

ldquoConsumers are drawn to the brick-and-mortar stores because they need information personal service or advice Customers know they can come in and compare prices and ingredients and brands And they expect to walk out of the store with the product avoiding the delay and added cost of shipping and handling Shopping in the store means they can ask questions see and touch the product And our salespeople pride themselves on having a broad knowledge of how to use vitamins and supplementsrdquo

ldquoOur focus as a specialty VMS store is total health and conscious wellness We sell quality branded products but have no private-label brandrdquo

ldquoWe have several popular brands including Nordic [Naturals Inc] hellip Now Supplements Natural Factors Carlson Labs and Naturersquos Way also are popularrdquo

ldquoVitamin Shoppe sells similar brands but they also have their own private label The biggest draw to Vitamin Shoppe for the average customer is lower pricing frequent and regular sales and promotionsrdquo

ldquoGNCrsquos top sellers are bodybuilding supplements Our top two sellers are high-quality multivitamins and Omega 3s They focus on private label and we focus on brands and variety GNC is known to promote its own brandrdquo

ldquoWhen I question customers about Vitamin Shoppe and GNC most say the staff at Vitamin Shoppe is more decent fair truthful and informed Plus they have more variety and are not just focused on their private labelrdquo

Executive at a regional VMS chain on the East Coast

Ecommerce sales for this brick-and-mortar VMS chain have increased by 150 a year for each of the last three years The chain has decided to halt growth at the brick-and-mortar level because of its online success Online growth may be poised to stagnate however because of manufacturer pressure tied to MAPs which favor in-store sales and prohibit deep discounting Vitamin Shoppersquos weakness online is a result of a strategy that mirrors its offline business model and is destined to fail against Amazon Vitamin Shoppe is increasing its share through store expansion but only claiming a bigger piece of a dying market

ldquoOver the last three years we have seen our ecommerce sales grow by 150 a year each year Itrsquos mostly been steady growth although in the last year our online growth has slowed somewhat mostly due to the issue of product access which is controlled by the manufacturers Our online growth depends on offering a breadth of selectionrdquo

ldquoThe problem is the manufacturerrsquos MAP The demand for individual product stems from the ability to educate the consumer The educational component occurs in the brick-and-mortar store The manufacturer is trying to create a reason for shoppers to go to the retail venue But the Internet is changing the fundamentals of retailrdquo

ldquoOur brick-and-mortar retail stores are very important to the overall operation and we continue to do what we can to control costs and build a customer data base We are doing what most brick-and-mortar retailers are doing The last store we opened was in 2008 and we are not looking at expanding our brick-and-mortar retail footprintrdquo

We actually have seen a slow and gradual downturn in foot traffic in the last few months compared to the same period last year Our numbers dropped January 2012 compared to January 2013 in the single digits People are spending less per shopping visit hellip Part of the slowdown may be because more people are going online to buy supplements

Manager VMS Retail Chain Northern California

The last store we opened was in 2008 and we are not looking at expanding our brick-and-mortar retail footprint hellip Years ago the Internet represented a miniscule fraction of our sales and now it represents the majority of our sales growth Ecommerce has surpassed the sales and revenue of our brick-and-mortar stores

Executive Regional VMS Chain East Coast


Vitamin Shoppe Inc

ldquoYears ago the Internet represented a miniscule fraction of our sales and now it represents the majority of our sales growth Ecommerce has surpassed the sales and revenue of our brick-and-mortar storesrdquo

ldquoVitamin Shoppe maximizes its locations and puts stores where there are high-end customers and not too many other brick-and-mortars They are a very interesting retailer and they are doing well offline I believe they are continuing to expand and gain a larger share of what is a shrinking marketrdquo

ldquoVitamin Shoppersquos store costs are higher because the stores are bigger and have more square footage than places like GNC They tend to locate in areas that have more expensive commercial rentsrdquo

ldquoVitamin Shoppersquos online strategy has revolved around infrastructure and their distribution centers which enables them to buy in bulk and then warehouse product But they are trying to compete with the likes of Amazon and that is becoming increasingly difficult Vitamin Shoppe online doesnrsquot have a better selection and they donrsquot have better prices They try to use the loyalty of customers who shop their brick-and-mortar stores which they are trying to position as a destination retail storerdquo

ldquoYou will not see all customers go online You canrsquot replace the convenience of walking in to a brick-and-mortar to buy a product or get information But the relative market share is shiftingrdquo

ldquoYou might go to a brick-and-mortar if you are new to supplements After the first few times you would probably then go online to buy the product because it is cheaper More and more customers are using the brick-and-mortar as a showroom to price and compare products before going online to buyrdquo

ldquoMany sports nutrition products are heavy and shipping costs are higher There also are many products that are liquids and bottled in glass which require a higher shipping cost and handling cost to prevent damagerdquo

ldquoAll of the online stores are competing with Amazon and that means online VMS stores have an uphill battle People who buy supplements are more likely to go to Amazon first because they want the better pricerdquo

ldquoWhole Foods is not a threat to the VMS chains They are not a threat to us If anything Whole Foods has the potential to bring the industry up I wouldnrsquot mind if a Whole Foods opened across the streetrdquo

Executive with a regional health food and VMS retail chain

The VMS industry has started to split into two channels that cater to different markets both exhibiting growth The online pure-play VMS sites best serve subgroups specifically bodybuilders and weight-loss consumers The VMS brick-and-mortar retail chains feed a broader consumer market focused on health and wellness These customers require information and guidance and seek to buy branded products Because of these developing market distinctions Vitamin Shoppe and other offline VMS retailers have not committed fully to online sales Instead they use the channel to guide the growth of new brick-and-mortar locations Vitamin Shoppersquos true challenge may come from growing regional VMS health food chains Nontraditional big-box chains pose no threat to Vitamin Shoppe Dr Ozrsquos influence can boost both online and offline sales

ldquoWhat has been affecting Vitamin Shoppe is that they are running up against people like us when they expand in our territory There are a number of regional VMShealth food retail chains that are thriving and growing Vitamin Shoppe is increasingly moving in to areas that are already heavily served by regional chains that have a history with the community lots of product choices and a strong following of loyal customers I can guarantee that if a Vitamin Shoppe store opened near us their parking lot would be empty and theyrsquod be trying to close and make the problem go away without too much embarrassmentrdquo

ldquoThe first problem with the VMS industry moving online is that there is more pressure on margins and that makes it hard to have a robust business There is always someone else offering loss-leader pricing and discounts Yoursquove got Amazoncom and eBay [IncEBAY] If someone just wants to find a VMS product online they can always find it cheaper than you can sell it at a brick-and-mortarrdquo

ldquoSecond there is a trust problem with the quality of product sold online so for core VMS customers who look for quality brands and quality ingredients online is not the best place to go Itrsquos hard to know what you are getting Online items often are from companies whose product ingredients are not easily verifiedrdquo

What has been affecting Vitamin Shoppe is that they are running up against people like us when they expand in our territory Vitamin Shoppe is increasingly moving in to areas that are already heavily served by regional chains that have a history with the community lots of product choices and a strong following of loyal customers

Executive Regional Health Food amp VMS Retail Chain


Vitamin Shoppe Inc

ldquoYou can go to an online site and get five products three of them free with free shipping and handling These are come-on offers that are inherently suspicious with the quality of product Usually you see entry-level or impulse buyers making purchases from low-price websites They may have just seen a new product on Dr Ozrdquo

ldquoAll of the online companies carefully monitor Dr Oz and some are even equipped to put a comparable product on their site literally within seconds after its been touted on Dr Ozrdquo

ldquoFor certain online VMS businessesmdashtypically bodybuilding and weight loss which are subgroups of the VMS industrymdashcreating a community online is possible The site is a place where they can share experiences or educational information But for the broader VMS consumer itrsquos hard to build a community online because the shared issues center on energy supplements or whey protein powder or magnesiumcalcium supplements The distinctions here are insurmountable barriers to building an online community or for supporting sales for the vast majority of VMS productsrdquo

ldquoWhat happens for VMS brick-and-mortar retailers when it is done right is that you are dealing with a core customer For the core buyers this requires an atmosphere built on trust quality and credible information It is very difficult to take this type of business out of the human environment and into the virtualrdquo

ldquoVitamin Shoppe uses its website to see where online sales are particularly strong and then they open a store Vitamin Shoppersquos approach is a perfect example of how to recapture online buyers and drive them into the brick-and-mortar store Vitamin Shoppe is very careful in their site selection and they pay particular attention to where their online salesrdquo

ldquoBuying VMS for the core customer is not as simple a transaction as people might think The core customer is willing to drive 30 minutes to get to a brick-and-mortar so they can ask questions find quality products and choice Thatrsquos why Irsquom not concerned for Vitamin Shopperdquo

ldquoPricing is a fundamental hurdle for the brick-and-mortar VMS retailer If the price of a qualitybrand product is $22 in the store how can you price it at $17 online If you have a VMS store you are contractually tied to the same price online as in the store That means you have to run a bunch of convoluted offers to get the price down The most successful online pure-play vitamin sites have no brick-and-mortar stores and no overhead And the most successful brick-and-mortar stores attempt to recapture online buyers in certain strategic locationsrdquo

ldquoAll of the VMS brand companies depend on the brick-and-mortar retailers to introduce a new product They depend on them to provide well-positioned shelf space and running promotions hellip Plus you cannot support the introduction of a new product online And the manufacturers also want to protect their MAPrdquo

ldquoThe key to VMS sales online is all about getting eyeballs to your site They must focus on SEO couponing and advertising board campaigns Most of the online VMS sites are spending about $30000 a month just to get people to their site and even then there is no guarantee you will make a salerdquo

ldquoCostco has the Kirkland brand for fish oil everyday vitamins and supplements like calcium But these are not the same quality products as the branded onesrdquo

ldquoAll of the channels in the VMS business are growing Itrsquos just that some are growing faster than others Top-line revenue can be misleading Brick-and-mortar have 30 to 50 margins the MLMs at 10 and the online players can do it even lower All of these channels are growing in different ways I can assure you that the brick-and-mortar at the street level are doing quite wellrdquo

Executive with a large retail chain focused on VMS and health and wellness programs

The source declined to provide data on sales traffic or consumer spend This growing VMS retail chain does not sell branded or proprietary products online although the company maintains an information website The franchise focuses on in-store consultation and health plans built around individual VMS needs Vitamin Shoppe sells quality products Also consumers choose Vitamin Shoppe over GNC because it has a more welcoming atmosphere and knowledgeable staff She said the same qualities hinder online sales growth because VMS users typically need educational information and opinions GNC recently launched a branding campaign which she said might prompt Vitamin Shoppe to follow

The first problem with the VMS industry moving online is that there is more pressure on margins and that makes it hard to have a robust business hellip Second there is a trust problem with the quality of product sold online



Vitamin Shoppe Inc

ldquoWe are a relatively young company and decided to focus on traffic at the brick-and-mortar stores I do not feel comfortable revealing sales or ticket information or details on our foot traffic Since we began in 2004 we have opened 173 stores in over 75 markets in 44 states with some markets operating several storesrdquo

ldquoWe do not have an ecommerce offering online but we do have an online presence and website that has a robust and engaged customer following We are on Facebook and Twitter and we definitely are looking to stay on top of Internet developments We realize ecommerce is a difficult business model to crackrdquo

ldquoThe one thing that continues to impede online sale of supplements if the Internetrsquos inability to offer consultation and the personal care often required and needed by consumers who use VMS You can buy a lot of products online at a good price but most people who use supplements and diet products want to have some explanation of what the ingredients will do for them and to their physiologyrdquo

ldquoUltimately all stores in our category will have an online sales presence perhaps comparable to retail storesrdquo ldquoBased on what consumers have told me over time I believe VMS consumers would choose Vitamin Shoppe

over GNC because Vitamin Shoppe is more approachable and they have more knowledge about general products and overall health Thatrsquos just my take away I donrsquot know what would make someone loyal to Vitamin Shoppe over another retailerrdquo

ldquoOne thing I have become aware of lately is that GNC is doing a big brand push I would imagine that will have an effect on Vitamin Shopperdquo

5) EXECUTIVES WITH VITAMIN SHOPPErsquoS ONLINE COMPETITORS All four sources who commented on online sales reported growth of at least 20 year to year one said sales grew 800 during the last three years Sources credited consumers becoming more committed to their health and wellness the convenience of the online model and the competitive pricing Vitamin Shoppe is slow to develop online sales because of its brick-and-mortar focus its ineffective strategy that applies its retail model to ecommerce and its inability to compete on price without eroding its margins Vertical integration would improve margins Pure-play online VMS sellers have had more success Online customers are not as loyal and base their purchases on price One source is focused almost entirely on international growth and said GNC is more focused than Vitamin Shoppe on international expansion Two sources said FDA regulations that require products to have clear descriptions will slow online growth and drive customers back into stores Owner of an online vitamin shop with an organic niche

Revenue has increased 800 in three years and the owner expects sales for the overall online industry to rise 15 this year thanks to consumersrsquo commitment to healthier lifestyles and the convenience of online purchasing Dr Oz is part of customersrsquo growing knowledge on the VMS industry The sourcersquos customers are driven more by the quality of ingredients than the price In fact his products are on average more expensive than Vitamin Shoppe and iHerb FDA regulations threaten to impede online growth because products must remove any definitive health advantage claims from untested productsrsquo labels Vitamin Shoppersquos online growth is slower than competitorsrsquo and the company risks seeing depressed margins in order to compete online

ldquoWe started as an ecommerce company We have been able to grow over 800 in just three years and we see that being an online retailer has its advantages We can reach more customers faster than brick-and-mortar VMSrdquo

ldquoThe industry is growing I expect an average of 15 growth in 2013 hellip Every company we talk to says they are seeing growth in sales The whole industry is growingrdquo

ldquoCustomers are more educated now They know what they are looking for They want a supplement to have specific ingredients They have shows like Dr Oz that help educate them and they have the Internetrdquo

ldquoWe are different than Vitamin Shoppe iHerb and so many of the huge retailers of vitamin superstores because every product has ingredients that are natural organic and without additives hellip We donrsquot try to carry every product on the market Competitors like Vitamin Shoppe tend to carry 30000 or 40000 different products

Based on what consumers have told me over time I believe VMS consumers would choose Vitamin Shoppe over GNC because Vitamin Shoppe is more approachable and they have more knowledge about general products and overall health

Executive VMS amp HealthWellness Retail Chain


Vitamin Shoppe Inc

whereas we only have 2000 hellip Other companies let you buy vitamins for $2 but we have a higher-quality vitamin and they are expensive We have some supplements that are $90 per bottle and people still buy them hellip They are willing to pay the price for quality ingredientsrdquo

ldquoThere is no specific vitamin [or supplement] theyrsquore buying We have returning customers because we have the right products with the best ingredients Thatrsquos why we saw a huge increase in salesrdquo

ldquoThe online industry is different and customers can compare prices from 10 different retailers in a few seconds So to sell the product online Vitamin Shoppe has to be competitive on pricing which means lower marginsrdquo

ldquoThe industry is growing so Vitamin Shoppe will do fine online They arenrsquot growing as fast as others but they are still growing hellip They have to stay with the current [marketing] trends like mobile apps Promoting their products is the right thing to do because theyrsquoll have higher marginsrdquo

ldquoWe do well despite higher prices We do well with our organic [SEO] rankings We have a really good marketing strategyrdquo

ldquoWe do sell some of the same products as Vitamin Shoppe but we do so well because we have a specialty niche Every online VMS business has to be different than Vitamin Shoppe because you canrsquot compete with something their sizerdquo

ldquoGovernment regulations could impede the movement of the industry online The FDA is on the side of big corporations and they are trying to enforce strict rules on dietary supplements Now every supplement [with any new dietary ingredients introduced after 1994] has to be registered through the FDA They try to make it harder in terms of the product descriptionrdquo

ldquoManufacturers have had to change all their descriptions to remove the claims or because research or testing hasnrsquot been done Companies still sell the products but because the product descriptions had to be changed customers canrsquot tell what itrsquos used for and that impedes online salesrdquo

Owner of Liquidwholefoodcom an international pure-play retailer of Life Force International products

This company had a 20 boost in 2012 sales compared to 2011 fueled by customersrsquo increasing desire to purchase all-in-one VMS solutions versus individualized products Online VMS stores specializing in pure-play niche markets likely will capture more customer traffic and higher online sales as the health and wellness industry continues to grow and its constituents become more educated on available products Although Vitamin Shoppe also offers liquid vitamins she does not believe it is poaching her customers Also Vitamin Shoppe has to shed its identity as only a brick-and-mortar solution in order to make further gains online

ldquoOur sales increased at least 20 from 2011 to 2012 it was our best year yet It was a great mix of recession recovery word of mouth and spending more with our marketing budget and advertisingrdquo

ldquoI only see us having a deeper niche in the market because baby boomers are aging and the wellness category continues growing at a rapid pacerdquo

ldquoFive years ago our traffic was for specific products Three years ago it was people for organic and natural products Those were huge SEO keywords A year ago it snowballed We still have people looking for brand names and still have organic and natural keywords but it has broadened into a more general search for a one-size-fits-all VMS productrdquo

ldquoWe are an elite dealer I would not consider Vitamin Shoppe an elite dealer We have retention because people see a difference using our products instead of retailer productsrdquo

ldquoA big problem with Vitamin Shoppersquos attempt to move online is that they are known to the public as a brick-and-mortar storerdquo

ldquoThe fact that we offer an automatic monthly shipping program helps customer loyalty despite being an online business Others make you buy three monthsrsquo worth at a time One out of every eight to 10 sales is an auto-ship salerdquo

The online industry is different and customers can compare prices from 10 different retailers in a few seconds So to sell the product online Vitamin Shoppe has to be competitive on pricing which means lower margins

Owner Online Vitamin Shop

A big problem with Vitamin Shoppersquos attempt to move online is that they are known to the public as a brick-and-mortar store

Owner Liquidwholefoodcom


Vitamin Shoppe Inc

ldquoThree years ago with the recession people were going down to CVS or their local drugstore for cheaper vitamins which is really tragic because they are synthetic and not really good for your bodyrdquo

David M Cunic CEO of Pazoo Inc

Pazoo has combined a one-stop online social forum with sales of VMS products for consumers and their pets and its traffic and sales have increased dramatically in the last year because of its private-label product launch All online VMS stores including Vitamin Shoppe are battling for the same market space and no dominant player has emerged That makes online prospects alluring for startups but carries the risk of watering down sales unless companies have a unique offering that can attract repeat customers

ldquoCompared to a year ago since we launched our own private label the traffic and sales have gone up tremendously and the amount of people calling and asking about the product has also gone up And now with the website relaunch the products have gone up both in sales and clicks We havenrsquot even done our pay-per-click campaigns yetrdquo

ldquoOur goal is to empower people with the opportunity to make good choices about their health and wellness Why should we pigeon hole ourselves [with pure-play online sales] hellip Some of our [VMS] products are going into 10 mom-and-pop nutrition stores in New Jerseyrdquo

ldquoMultivitamins are our No 1 sellers The second one is vitamin C Omegas-3s are also big And stem cell nutrition is gaining interest there are vitamins out there that can help your stem cell nutrition Wersquore one of the few players out there with a vitamin for this called Vita Cell Itrsquos going to be the new wave of VMS sales online and offlinerdquo

ldquoPeople are being smarter with their money They donrsquot want to pay three or four different websitesrsquo shipping fees to get their products so we brought people and their respective VMS needs together They can ask questions and talk to an expert online about potential products to find out what might be right for them then buy the products on the exact same website at the same timerdquo

ldquoVitamin Shoppe is in the middle of the pack onlinerdquo ldquoNot everyone is going to buy stuff online because of shipping and handling hellip Some people still want to hold it

and read the labelsrdquo ldquoWould you want to spend three to four hours researching a multivitamin then spend $3 to $4 in shipping or

would you want to talk to a health expert who can help you find the one product thatrsquos right for you that you can also buy right there on the siterdquo

ldquoIn terms of brick-and-mortar itrsquos location location location If there is a Vitamin Shoppe down the street from a consumerrsquos house and they have the products you need you are just going to drive and pick it up Why pay for shipping and handlingrdquo

Operations director for a pure-play online VMS store with international reach

This companyrsquos sales have grown 60 year to year predominantly because of its international reach selling to countries like China that prefer US-manufactured VMS products for safety and variety Sales penetration into international markets is where online VMS stores stand the best chance of gaining future share Currently too many US-centric VMS stores both online and offline are battling for the same market although GNC has wizened up and is looking to expand globally Vitamin Shoppersquos sluggish online growth likely is due to misguided leadership employing its retail business model for its ecommerce venture

ldquoOur growth rates are close to 60 year over year Our success is driven internationally We are not spending a lot of money to grow in the USrdquo

ldquoEcommerce is strong It is the fastest growing segment hellip Global is where businesses will set their sights especially selling US-made products to China That is probably the single largest global area that is untapped and is in high demand for US manufactured goods including VMSrdquo

ldquoVitamin Shoppe Vitacost GNC are primarily US-based 95 of their online business is domestic We are all fighting for that same slice of pie We share market share here But they all know that their future actually lies internationallyrdquo

ldquoWe have 30000 SKUs of VMS products things you can find at Whole

Our growth rates are close to 60 year over year Our success is driven internationally We are not spending a lot of money to grow in the US

Operations Director Pure-play Online VMS Store


Vitamin Shoppe Inc

Foods and other markets but we are the only ones that can get them into those international markets due to online accessibilityrdquo

ldquoWe are currently in 183 countries but there are only a handful of markets that represent significant future market size and growth for us The biggest are the Asia Pacific countries followed closely by Eastern Europe hellip In Q4 of last year the APAC market had taken over in leading our sales growthrdquo

ldquoIn January we sold almost 40000 units of vitamin C gummies in the APAC region because itrsquos hard to get The rest of the world only bought 441rdquo

ldquoOne of the positive outcomes of government regulations with the FDA is the fact that VMS has to be manufactured under strict guidelines in the United States hellip All of the hoops we have to jump through to satisfy the manufacturing process translates well for pure-play online VMS stores in countries like China where there have been recent cases of tainted products hellip It strengthens the demand for US-made VMS products from the international consumerrdquo

ldquoThe population in China is getting a taste of wealth and a desire to live longer But they donrsquot want VMS thatrsquos manufactured in China They want US products which is good for usrdquo

ldquoGNC is looking for ways to increase their footprint in terms of ecommerce both domestically and internationallyrdquo

ldquoVitamin Shoppersquos online challenges may be due to an organizational issue Online is different structurally Therersquos a world of difference between carton and full pallet shipments versus single unit shipments Itrsquos different supply chains and packaging Transitioning to online successfully can be done but maybe they donrsquot have the right people on board or they are too afraid of cannibalizing store sales From what Irsquove seen they donrsquot understand that when you go to multichannel it actually enhances store salesrdquo

ldquoThey need to have a particular mindset to realize that how you buy for stores is not the same types of products you need to buy for direct to consumer shipments You need to create a separate business to support it Itrsquos different marketing toordquo

ldquoOne of the reasons why ecommerce is doing so well is that brick-and-mortar SKUs are limited by space hellip When yoursquore online yoursquore not limited If customers have 30000 or 40000 products to choose from pure-play or 3000 from brick-and-mortar who are you going to choose fromrdquo

ldquoThis particular market has broad appeal as the population ages and they are doing what they can to sustain prolong and extend their livesrdquo

President of an online supplement store specializing in whole-food biotechnology solutions

Online sellers including Vitamin Shoppe cannot offer the same level of service that lures customers into stores Furthermore online customers are driven by price unless a company can tout major medical research or a vertical integration which helps maintain high margins

ldquoThere is no buying loyalty online A company like Vitamin Shoppe can spend millions to develop that infrastructure and charge $1 more for your products in order to compensate for that Well that additional dollar is enough to deter customers from choosing to do business with yourdquo

ldquoItrsquos a really big hurdle for companies like Vitamin Shoppe and GNC to move from retail to online Itrsquos going to take major marketing resources to move this industry to the internet and get those customersrdquo

ldquoItrsquos about increasing marketing to basically replicate the salesperson in their retail stores Thatrsquos the difficult part of this online business In order to be effective you have to replicate that sales pitch to the customer because if they find it somewhere else for cheaper theyrsquore likely to just buy it elsewhererdquo

Vitamin Shoppersquos online challenges may be due to an organizational issue hellip From what Irsquove seen they donrsquot understand that when you go to multichannel it actually enhances store sales hellip They need to have a particular mindset to realize that how you buy for stores is not the same types of products you need to buy for direct to consumer shipments


There is no buying loyalty online A company like Vitamin Shoppe can spend millions to develop that infrastructure and charge $1 more for your products in order to compensate for that Well that additional dollar is enough to deter customers from choosing to do business with you

President Online Supplement Store


Vitamin Shoppe Inc

ldquoMost of the companies think that the cost of doing more business is on the back end They are forgetting about the nuts and bolts to grow sales It costs money to advertise online They are trying to rely on having a full lsquoshopping cartrsquo without really communicating the message of their online products You have to give someone a really good reason to buy a supplement online We have our science and research to back up oursrdquo

ldquoThe overall challenge with selling online is in creating an effective communication strategy to convey the importance of whatever supplement your customers are looking for Yoursquore missing a bunch of steps that are available to the retail store You donrsquot have a dedicated sales office or resale suppliers that communicate those productsrsquo benefits to the customers You are really relying on a lot of research directly performed by the consumer to boost salesrdquo

ldquoThere is a huge opportunity for the company that figures out how to maintain customer loyalty with the transition to online Theyrsquoll have a serious competitive advantagerdquo

ldquoWe survive with higher-end products because of the margins We are vertically integrated on the production side of things Having some of that manufacturing capability is what keeps us vital We operate in a very well protected spacerdquo

ldquoSales overseas are going to be that low-end supplement vitamins or minerals where they can move them over for pennies and work on lower margins I donrsquot see higher-end supplements doing wellrdquo

6) VITAMIN SHOPPE SUPPLIERS Both sources said Vitamin Shoppe is trailing competitors in online sales because its website ranks low in online searches and lacks content and functionality and its prices are more in line with Vitamin Shoppe stores than with other online retailers Sites like BodyBuildingcom are leading the way with an interactive educational approach coupled with ample product information and customer testimonials Vitamin Shoppe also was criticized for promoting its own private-label products at the expense of more popular branded products One source said Vitamin Shoppe has taken its eye off the ball with its focus on store expansion in Canada and the Pacific Northwest Both sources believe VMS industry sales will grow faster online than through brick-and-mortar especially as customers become aware of the online processrsquo ease and value Executive with a global supplierdistributor of branded VMS products

Vitamin Shoppersquos stunted online sales may stem from its poor SEO and its tendency to promote its private-label products rather than in-demand brands Competition has intensified in the VMS space driven by VMS productsrsquo increasing presence at mass-market retail chains and the inclusion of VMS additives in common consumer products Vitamin Shoppe has the potential to generate strong sales online if it can upgrade its data analytics SEO and selling tactics to include popular VMS brands and products Online VMS purchases will continue to gain momentum as customers become more comfortable with the process

ldquoVitamin Shoppersquos online prospects are good and could be huge They just need to change their strategy with regard to the Internet They need to look at the developing trends for Internet selling and separate out the needs of their target grouprdquo

ldquoThey donrsquot have effective search engine optimization When I put in the terms lsquobodybuilding supplementsrsquo they donrsquot come up at all The key links on the search are BodyBuildingcom and others But even when I put in the terms lsquovitamins minerals and supplementsrsquo Vitamin Shoppe doesnrsquot appear until the second page What comes up are sites like Wikipedia and WebMD GNC is the first of the retailers to come up and then Vitacost and Swanson [Health Products]rdquo

ldquoA lot of Vitamin Shoppersquos problem could be as simple as search engine optimization When I rebuilt our website and improved SEO our own sales grew by 33 year over year That was when Amazon found us and Amazoncom is now our biggest customerrdquo

ldquoThe problem with Vitamin Shoppe is that they push their own product line hellip before anyone elsersquos products That does not go over well with consumers of supplementsrdquo

ldquoI think of GNC and Vitamin Shoppe as being the same They carry the same lines and people often use them to price-shop before going

Vitamin Shoppersquos online prospects are good and could be huge They just need to change their strategy with regard to the Internet They need to look at the developing trends for Internet selling and separate out the needs of their target group hellip They donrsquot have effective search engine optimization

Executive VMS Products Global SupplierDistributor


Vitamin Shoppe Inc

online The biggest online seller of supplements is Bodybuildingcom and they are giving everyone a run for their moneyrdquo

ldquoBodyBuildingcom is a good example of optimizing an Internet site They put out more information about the products they have a lot of testimonials They post comments and consumer opinions about different products hellip They profile athletes and specialty productsrdquo

ldquoPricing is an issue If you look at a popular item like [Naturersquos Best] Isopure it comes up as $4539 on the Vitamin Shoppe website Puritanrsquos Pride sells it for $3995 onlinerdquo

ldquoTherersquos a lot more competition out there and it definitely affects the overall market and Vitamin Shoppe Wal-Mart and the grocery stores are one reason the brick-and-mortars are under threat Whole Foods is not much of a threat because they sell at a premium price The threat from online players is that they have less overhead and can offer better pricing forcing the brick-and-mortars to price-match The category is really expandingrdquo

ldquoIf you look at the top 25 VMS and bodybuilding retailers 100 of them have an online store or have an online sales component Itrsquos become the norm and some are more successful than others But I believe the brick-and-mortar retailers can transition sales onlinerdquo

ldquoThere is an educational shift going on for buyers and sellers For example some sites have fabulous return policies but many consumers struggle with returns so they may have less trust when buying the more expensive items onlinerdquo

ldquoExperimentation comes into play in the VMS sector but once consumers know a product and learn to use it or love it after checking it out in a store they may more easily buy it online But if you havenrsquot tried a product before if you havenrsquot tasted and felt it you are less willing to buy it online A lot of VMS products are cost-prohibitive to ship so they donrsquot lend themselves to the online sales formatrdquo

ldquoWe sell to Vitamin Shoppe but not in great quantity Vitamin Shoppe mostly buys directly from manufacturers hellip At this point even a lot of the gyms sell supplements and have their own online shopsrdquo

ldquoVitamin Shoppe is very smart to expand into Canada through acquisitions because many manufacturers right now have had to retool products especially for the Canadian market because of strict rulesrdquo

National sales director with a VMS manufacturer

Vitamin Shoppersquos expansion through acquisitions in Canada and the Pacific Northwest has undermined the stability of its US stores The companyrsquos online weaknesses are tied to website content and functionality along with pricing pressure that conflicts with product costs in brick-and-mortar stores The VMS industry is expected to grow by high single digits year to year and post even greater growth online Online VMS sales continue to grow at a steady pace driven by consumersrsquo growing acceptance of the products and manufacturersrsquo educational material

ldquoVitamin Shoppe has taken their eye off the ball They are dealing with the expansion in Canada and they recently bought Super Supplements Growth in the Pacific Northwest and Canada has taken their attention away from the US operationsrdquo

ldquoVitamin Shoppe tends to promote its private-label products but GNC is far more guilty of pushing its own products hellip We sent some of our own people in to ask for specific brands and they were steered away from those items toward buying the private label Itrsquos not right to treat your customers that way and I think they finally realized that this yearrdquo

ldquoVitamin Shoppersquos problem with the website is lack of content ease of use and product pricing Pricing is a huge issue for consumers At this point itrsquos easy for consumers to do a search and compare pricing Vitamin Shoppersquos prices are much higher than consumers can find at other reliable websites They donrsquot want to undersell their stores That means their online prices are very close to store pricesrdquo

ldquoFew if any of the brick-and-mortar specialty retailers have crossed over to or been successful on both store and online channels The best thing for the brick-and-mortar stores would be to buy a top ranked site like Supplement Warehouse and use an established online site for handling their online sales growthrdquo

ldquoFor now consumers will still be buying at the brick-and-mortar stores because considerable education is required to make the move online

Vitamin Shoppersquos problem with the website is lack of content ease of use and product pricing Pricing is a huge issue for consumers At this point itrsquos easy for consumers to do a search and compare pricing Vitamin Shoppersquos prices are much higher than consumers can find at other reliable websites They donrsquot want to undersell their stores That means their online prices are very close to store prices

National Sales Director VMS Manufacturer


Vitamin Shoppe Inc

The VMS industry is complicated [and] many products are also complicated to understand The Vitamin Shoppes and GNCs of the world have started the VMS education process As consumers get more educated and use online sites there will be a gradual acceptancerdquo

ldquoWe do online sales and we project good growth this year but then last year was so bad that it kind of muddies the waters We expect high single-digit growth for the industry overall year over year Online will probably do better than brick-and-mortar hellip There is motivation to push harder for online There is less margin loss with online There is less inventory and the online warehouses and shippers can react faster to demand With the brick-and-mortars most take delivery every 10 days and they often are two to three weeks behind The brick-and-mortar has a different logistics model and that creates more opportunity for online modelsrdquo

ldquoOnline only stores have a different focus Selling online requires a different mindset than the brick-and-mortar business model Thatrsquos why for most brick-and-mortars the sales have not translated They are not interactive or educational like BodyBuildingcom The brick-and-mortars grew up relying on the traditional retail approach and they donrsquot make the connection that online is differentrdquo

ldquoThe most successful and widely used website right now is BodyBuildingcom and thatrsquos because of their content They have video content and informative articles and nutrition education and that continues to help consumers feel more comfortable with buying VMS onlinerdquo

ldquoI donrsquot think other mass retailers pose much of a competitive threat Most of the VMS items sold in supermarkets are different from the products sold in the specialty stores Most major suppliers have one product for supermarkets and another for the VMS channelrdquo

7) ONLINE CONSUMER SURVEY USING SURVEYMONKEY An online survey of 109 customers who have shopped at Vitamin Shoppe GNC andor any other VMS retailer in the last 12 months showed that customers are reticent to shop online for their VMS purchases Vitamins were respondentsrsquo most popular purchase in-store personnel was deemed nonessential and customers tend to stick with products and brands they know Vitamin Shoppe was not as popular a destination as other brick-and-mortar retailers like GNC drugstores and health-food grocery stores Its website however was more frequently used than GNCrsquos or Vitacostrsquos Vitamin Shoppe does not have products that foster significant customer loyalty Customers appear to open to increasing their online purchasing of VMS products in the next year Price is the most important factor affecting online VMS purchases 1 How often do you purchase VMS products

Customers buy their VMS products spread across several months Most buy VMS products less than once every three months (3578) or once every three months (2202)


Vitamin Shoppe Inc

2 How far away from your home or office is the retailer from which you most often purchase VMS products Most customers (6055) live or work within five miles of the retailer where they purchase their VMS products most frequently Nearly 15 of customers (1468) purchase most of their VMS products online

3 When purchasing VMS products how much do you typically spend Spending between $15 and $30 was the most common answer (3853)


Vitamin Shoppe Inc

4 How would you break down your spending across the following product categories Vitamins account for the highest average (4565) of customer spending followed by specialty supplements (2583) sports nutrition (1311) minerals (940) and herbs (601)

5 How often do you rely on the expertise of in-store personnel Customers rarely (3571) or only sometimes (2959) rely on in-store personnel when making VMS purchases


Vitamin Shoppe Inc

6 How often do you try new VMS products or brands The majority of customers (5102) reportedly occasionally trying new VMS products while 3571 said they rarely do so ldquoAlwaysrdquo (0) did not receive a single vote

7 From whom do you purchase VMS products Drugstores (2296) and GNC (1918) were the two most common places for customers to buy their VMS products Vitamin Shoppe (833) was not a popular response trailing health food stores (1579) and other offline stores (1321) However its website received more votes (269) than Vitacostcom (219) or GNCcom (179)

8 What percentage of your VMS purchases are made online

The majority of customers buy less than 10 of their VMS products online (6429) though the next highest response category came from those who buy at least 90 online (1224)


Vitamin Shoppe Inc

9 How do you expect your online VMS purchasing to change in the next 12 months compared with the previous 12 months More customers expect their online purchasing of VMS products to increase (1633) compared with those who expect it to decrease (612)

10 How would you characterize your general willingness to purchase products online Customers appeared willing to purchase products online ldquomoderaterdquo (2857) ldquoextremely highrdquo (2653) and ldquofairly highrdquo (2347) were the most common responses

11 Which VMS products are you most likely to buy online (1 is most likely 5 is least likely)

Customers were most likely to buy vitamins (277) and specialty supplements (292) online but were less likely to buy herbs (369) and sports nutrition (354) through a website


Vitamin Shoppe Inc

12 How often do you compare prices for VMS products online to those in stores Customers never (2857) compare prices or do so seldomly (2245) though one group (2041) compares prices all the time

13 Rank in order of importance the following criteria when purchasing VMS products (1 is most important 5 is least

important) Price (173) is the most important criterion when considering VMS purchases followed by product availability (234) broad selection (244) and convenience (244) Customer service was rated least important (315)


Vitamin Shoppe Inc

14 Are there specific products or brands available only at Vitamin Shoppe that ensure your customer loyalty and keep

you from purchasing VMS products at other retail outlets (online or offline) (Not all customers responded) Only 722 said Vitamin Shoppe has specific brands and products that keep them loyal to the retailer Those who answered ldquoyesrdquo cited products such as Vitamin Shoppersquos private-label products ginkgo biloba Twinlab and ZMA

Demographics All Respondents

Gender Male 4746 Female 5254

Age

18ndash29 (1661) 30ndash44 (2068) 45ndash60 (3492) 60+ (2780)

Household income

$0ndash$24999 (2180) $25000ndash$49999 (1203) $50000ndash$99999 (3421) $100000ndash$149999 (1729) $150000+ (1466)

Education

Less than a high school degree (136) High school degree (1051) Some college (2441) Associate or bachelor degree (3932) Graduate degree (2441)


Vitamin Shoppe Inc

Secondary Sources These seven secondary sources discussed consumersrsquo rising interest in vitamins and supplements Vitamin Shoppesrsquo expansion plans and increasing competition from online retailers OVERALL VITAMIN MARKET These three sources indicated higher global sales for vitamins and supplements because of a developing interest especially from women in healthy living and preventative health measures Feb 13 Business Wire article

Vitamin Shoppe and GNC will see increased sales as health-conscious consumers turn to vitamins and supplements bull ldquoWhether itrsquos Vitamin C to ward off a cold or fish oil for a fit heart consumers are increasingly looking to vitamins

and dietary supplements in pursuit of a healthy lifestyle And according to the latest Sector Focus commentary from Turner Investments thatrsquos likely to mean steady sales and earnings growth for stores that specialize in selling vitamins or supplements especially GNC Holdings and Vitamin Shopperdquo

ldquoThe analysts note that consumer demand for vitamins and supplements is spread across all age groups from baby boomers who take dietary supplements to prevent degenerative diseases and costly medical procedures to their younger counterparts in the millennial generation (those born after 1980) who are highly health consciousrdquo

March 11 Dailycometcom article

Healthy-living stores are replacing more traditional retailers in neighborhood shopping centers and strip malls showing the effects of the nationrsquos obsession with fitness and health on commercial real estate

ldquoHealth clubs are increasingly anchoring outdoor shopping centers Yoga studios yogurt shops vitamin and workout apparel stores organic food markets and health foods restaurants quickly followrdquo

ldquoGNC seller of vitamins supplements and herbal remedies is opening 150 stores this yearrdquo March 12 Digital Journal article

Herbal supplements continue to see a growth in demand globally because of an escalating interest in preventative health and a desire to cut medical costs

ldquoHerbal supplements hellip account for approximately 30 of the global supplements marketrdquo ldquoThe foremost factor propelling growth in herbal supplements markets worldwide is the rising interest in

preventative health while the necessity to cut costs comes next in order Medical expenses are a huge burden for families and individuals forcing them to seek relatively cheaper herbal medicines for various ailmentsrdquo

ldquoWomen form the major consumer group for herbal supplements owing to their growing health-consciousness and increased concern for dietrdquo

VITAMIN SHOPPE Two sources highlighted Vitamin Shoppersquos expanding presence through its Vitapath stores in Canada and Super Supplements in the northwestern United States Feb 5 Puget Sound Business Journal article

Vitamin Shoppe purchased Super Supplements for $50 million to expand in the Northwest ldquoCurrently The Vitamin Shoppe operates more than 560 stores and Super Supplements has 31 stores in the

Pacific Northwestrdquo ldquoIn addition to the Super Supplements acquisition The Vitamin Shoppe has plans to add another 57 storesrdquo

Jan 14 Chain Store Age article

Vitamin Shoppe has expanded into Canada and has opened two Vitapath stores ldquoVitapath a subsidiary of US-based Vitamin Shoppe has opened its first two Canadian stores in the greater

Toronto area in Newmarket and Leaside The company expects to expand its retail stores under the Vitapath banner across Canada with additional locations expected to open later in 2013rdquo


Vitamin Shoppe Inc

ONLINE COMPETITION These two sources showed the rise of Internet-based retailers and their saturation of the VMS market Feb 1 ConsumerLabcom article

A consumer survey highlighted rising Internet spending on vitamins and supplements and a plethora of Internet-based retailers

ldquoThe survey uncovered other important trends particularly regarding use of the Internet in buying supplements Online stores were used by 454 of respondents rising 26 percentage points over the prior year to further distance it from the next most popular vendors health food stores (used by 288 of respondents) warehouse clubs (282) mail order catalogues (277) supermarkets (257) vitamin stores (247) pharmacies (244) mass merchants (168) direct distributors (123) and health care practitioners (76)rdquo

ldquoFurther evidence of the influence of the Internet is that among the 851 different retailers from which respondents buy supplements Amazon is the 3rd most popular up from 10th the prior yearrdquo

Check here for Top-rated VMS brands Jan 27 The Palm Beach Post article

Florida-based Vitacost has emerged as a major VMS e-tailer and has set out to expand its product lines and global footprint in 2013

ldquoVitacost ranked third behind Amazoncom and LLBeancom (and tied with QVCcom) on a ForeSee holiday shopping survey of Internet retailersrdquo

ldquoVitacost got 84 points on a 100-point scale in a survey that asked 24000 people about their holiday e-commerce experiences Thatrsquos a big deal for a company that stopped sending catalogs less than two years ago and boosted sales 36 percent between 2009 and 2011 to $2605 millionrdquo

ldquoCEO Jeffrey Horowitz took over in mid-2010 after accounting questions caused the ouster of founder Ira Kerker Horowitz previously founded Vitamin Shopperdquo

ldquoVitacost added about 8000 items for an array of 40000 products and most of the additions are in food and drugstore categories because the company already offered almost everything available in vitamins supplements and herbs It adds 150 to 300 new items each week but discards products that donrsquot sellrdquo

Additional research by Scott Martin Carolyn Marshall Marissa Yaremich Tina Strasser Lindsay Gadsby Cindy Elsberry Colin Gustafson Kevin Murphy Ken Turetzky Debbie Moss Liana Mortazavi and Cheryl Meyer The Author(s) of this research report certify that all of the views expressed in the report accurately reflect their personal views about any and all of the subject securities and that no part of the Author(s) compensation was is or will be directly or indirectly related to the specific recommendations or views in this report The Author does not own securities in any of the aforementioned companies

OTA Financial Group LP has a membership interest in Blueshift Research LLC OTA LLC an SEC registered broker dealer subsidiary of OTA Financial Group LP has both market making and proprietary trading operations on several exchanges and alternative trading systems The affiliated companies of the OTA Financial Group LP including OTA LLC its principals employees or clients may have an interest in the securities discussed herein in securities of other issuers in other industries may provide bids and offers of the subject companies and may act as principal in connection with such transactions Craig Gordon the founder of Blueshift has an investment in OTA Financial Group LP

copy 2013 Blueshift Research LLC All rights reserved This transmission was produced for the exclusive use of Blueshift Research LLC and may not be reproduced or relied upon in whole or in part without Blueshiftrsquos written consent The information herein is not intended to be a complete analysis of every material fact in respect to any company or industry discussed Blueshift Research is a trademark owned by Blueshift Research LLC


Summary of Findings

Next Steps

1) VITAMIN SHOPPE REGIONAL MANAGERS

2) VITAMIN SHOPPE STORES

3) VITAMIN SHOPPE CUSTOMERS

4) EXECUTIVES WITH VITAMIN SHOPPErsquoS OFFLINE COMPETITORS

5) EXECUTIVES WITH VITAMIN SHOPPErsquoS ONLINE COMPETITORS

6) VITAMIN SHOPPE SUPPLIERS

7) ONLINE CONSUMER SURVEY USING SURVEYMONKEY

Secondary Sources

Vitamin Shoppe Inc

Background The US vitamin mineral and supplement (VMS) market is $31 billion with online sales comprising 7 of current sales Vitamin Shoppe is one of the largest VMS retailers with 579 brick-and-mortar stores It gets 11 of its revenue from the online channel growing at 8 per year Blueshiftrsquos October 2011 report showed that Vitamin Shoppersquos in-store service and low prices were driving sales Customers prefer to shop in Vitamin Shoppe stores rather than on its Web site because they want access to personalized service no shipping costs or waiting and in-store matching of online prices Vitamin Shoppersquos fourth quarter 2012 earnings were disappointing as revenue missed analystsrsquo estimates for the first time in several quarters Same-store sales increased 52 but Superstorm Sandy had a 16 negative impact and affected 160 stores CURRENT RESEARCH Blueshift assessed trends in sales traffic and spending at Vitamin Shoppersquos brick-and-mortar stores its prospects for growing its online business and the reasons its customers remain loyal when faced with a growing list of VMS retail options We employed our pattern mining approach to establish and interview 76 sources in six independent silos an online survey and seven of the most relevant secondary sources focused on overall VMS trends and online competition for Vitamin Shoppe

1) Vitamin Shoppe regional managers (10) 2) Vitamin Shoppe store personnel (12) 3) Vitamin Shoppe customers (41) 4) Executives with offline competitors (6) 5) Executives with online competitors (5) 6) Vitamin Shoppe suppliers (2) 7) Online customer survey (109) 8) Secondary sources (7)

Next Steps Blueshiftrsquos next report on the VMS industry will include a deeper look into sales trends to determine if Vitamin Shoppersquos fourth-quarter results were an anomaly and if sourcesrsquo comments about 10 sales growth for the first quarter are holding up We will highlight Northeastern stores and their recovery from Superstorm Sandy and will monitor new locations in the West as they face competition from firmly entrenched local retailers We also will more directly compare sales for Vitamin Shoppe with GNCrsquos and will check Vitamin Shoppersquos online growth as it incorporates its catalog into its website Finally we suggest increasing the focus on the product suppliers and distributors silo

Silos 1) VITAMIN SHOPPE REGIONAL MANAGERS All 10 sources said first-quarter sales growth is recovering although most added that local expansion has moderated to 5 to 10 year to year Regional growth targets appear to be in the 10 range and one source believes 15 is exceptional for the company as it now stands A Northeast source confirmed that Superstorm Sandy was a severe drag on the core regionrsquos operations and sales with recovery ongoing Although most sources characterized online sales as a priority for the company all were sanguine about brick-and-mortarrsquos ability to remain relevant Four said Vitamin Shoppe is more focused on its brick-and-mortar expansion upon which they believe online expansion will follow Customer loyalty to Vitamin Shoppe comes from sales staffrsquos assistance and transparent product recommendations In-store sales also provide an opportunity to highlight higher-margin items No source specified a particular product or noted Vitamin Shoppersquos private-label products as a reason for customer loyalty


Vitamin Shoppe Inc


















Vitamin Shoppe Inc



















Vitamin Shoppe Inc



















Vitamin Shoppe Inc



















Vitamin Shoppe Inc





















Vitamin Shoppe Inc


















Vitamin Shoppe Inc














Vitamin Shoppe Inc























Vitamin Shoppe Inc



























Vitamin Shoppe Inc


Manager in Dallas

















Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc


















Vitamin Shoppe Inc



















Vitamin Shoppe Inc



















Vitamin Shoppe Inc



















Vitamin Shoppe Inc





















Vitamin Shoppe Inc


















Vitamin Shoppe Inc














Vitamin Shoppe Inc























Vitamin Shoppe Inc



























Vitamin Shoppe Inc


Manager in Dallas

















Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc



















Vitamin Shoppe Inc



















Vitamin Shoppe Inc



















Vitamin Shoppe Inc





















Vitamin Shoppe Inc


















Vitamin Shoppe Inc














Vitamin Shoppe Inc























Vitamin Shoppe Inc



























Vitamin Shoppe Inc


Manager in Dallas

















Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc



















Vitamin Shoppe Inc



















Vitamin Shoppe Inc





















Vitamin Shoppe Inc


















Vitamin Shoppe Inc














Vitamin Shoppe Inc























Vitamin Shoppe Inc



























Vitamin Shoppe Inc


Manager in Dallas

















Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc



















Vitamin Shoppe Inc





















Vitamin Shoppe Inc


















Vitamin Shoppe Inc














Vitamin Shoppe Inc























Vitamin Shoppe Inc



























Vitamin Shoppe Inc


Manager in Dallas

















Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc





















Vitamin Shoppe Inc


















Vitamin Shoppe Inc














Vitamin Shoppe Inc























Vitamin Shoppe Inc



























Vitamin Shoppe Inc


Manager in Dallas

















Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc


















Vitamin Shoppe Inc














Vitamin Shoppe Inc























Vitamin Shoppe Inc



























Vitamin Shoppe Inc


Manager in Dallas

















Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc














Vitamin Shoppe Inc























Vitamin Shoppe Inc



























Vitamin Shoppe Inc


Manager in Dallas

















Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc























Vitamin Shoppe Inc



























Vitamin Shoppe Inc


Manager in Dallas

















Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc



























Vitamin Shoppe Inc


Manager in Dallas

















Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc


Manager in Dallas

















Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc























Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc























Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc






















Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc



SpendingVisits Flat


Total 17 16 8 41























Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc


























Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc































Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


Household income


Education



Vitamin Shoppe Inc




















Vitamin Shoppe Inc















Summary of Findings

Next Steps








Secondary Sources

Vitamin Shoppe Inc

























Vitamin Shoppe Inc






























Vitamin Shoppe Inc
























Vitamin Shoppe Inc




























Vitamin Shoppe Inc


























Vitamin Shoppe Inc






















Vitamin Shoppe Inc





























Vitamin Shoppe Inc























Vitamin Shoppe Inc

























Vitamin Shoppe Inc


















Vitamin Shoppe Inc
















West



West


Vitamin Shoppe Inc

















Midwest


Vitamin Shoppe Inc




















Vitamin Shoppe Inc


















Vitamin Shoppe Inc

















Vitamin Shoppe Inc
















Vitamin Shoppe Inc






















Vitamin Shoppe Inc





















Vitamin Shoppe Inc





















Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















Vitamin Shoppe Inc









Vitamin Shoppe Inc




Vitamin Shoppe Inc




Vitamin Shoppe Inc






Vitamin Shoppe Inc






Vitamin Shoppe Inc





Vitamin Shoppe Inc





Age


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Summary of Findings

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West



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Age


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Summary of Findings

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West



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Age


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Summary of Findings

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West



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Vitamin Shoppe Inc
















Vitamin Shoppe Inc




















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Age


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Summary of Findings

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Secondary Sources

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Vitamin Shoppe Inc























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West



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Vitamin Shoppe Inc




















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Vitamin Shoppe Inc




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Age


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West



West


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Midwest


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Age


Household income


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Summary of Findings

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Secondary Sources

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West



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Age


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West



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Midwest


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Age


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Summary of Findings

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Age


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Summary of Findings

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Summary of Findings

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West



West


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Age


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Summary of Findings

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Midwest


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Age


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Summary of Findings

Next Steps








Secondary Sources

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Age


Household income


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Summary of Findings

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Secondary Sources

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Age


Household income


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Summary of Findings

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Secondary Sources

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Age


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Summary of Findings

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Age


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Summary of Findings

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Age


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Summary of Findings

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Age


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Summary of Findings

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Age


Household income


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Summary of Findings

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Secondary Sources

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Age


Household income


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Summary of Findings

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Secondary Sources

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Vitamin Shoppe Inc









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Age


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Summary of Findings

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Age


Household income


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Summary of Findings

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Vitamin Shoppe Inc




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Age


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Summary of Findings

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Age


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Summary of Findings

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Age


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Summary of Findings

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Summary of Findings

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Summary of Findings

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Age


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Summary of Findings

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Vitamin Shoppe Sales Getting Back on Track, Online Slow to ...€¦ · Vitamin Shoppe is one of the...

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Transcript of Vitamin Shoppe Sales Getting Back on Track, Online Slow to ...€¦ · Vitamin Shoppe is one of the...