GNC Picks Rite-Aid Stores Chief as New CEO
September 06 2017 - 10:27AM
Dow Jones News
By Cara Lombardo
A Rite Aid Corp. executive tasked with overseeing its stores has
left the company to become chief executive of GNC Holdings Inc., a
vitamin and supplement retailer in the midst of its own turnaround
campaign.
Ken Martindale, who worked at Rite Aid for almost nine years,
was CEO of Rite Aid Stores and president of the parent company. Mr.
Martindale's exit comes three months after Walgreens Boots Alliance
and Rite Aid scrapped a $9.4 billion merger agreement, with
Walgreens instead buying half of Rite Aid's stores.
At GNC, Mr. Martindale will succeed interim CEO Bob Moran, who
held the position for more than a year as the company searched for
a permanent leader. Mr. Martindale, whose first day as CEO will be
Monday, will oversee a company that generated $2.54 billion of
revenue last year and had more than 9,000 locations, including
stores outside of the U.S.
GNC's interim chief said on a conference call in October that
company's next leader will have to contend with "a broken business
model" that includes confusing pricing schemes and outdated
technology. Over the past year, the company has been working to
jump-start flagging sales by revamping its marketing efforts and
simplifying its pricing for customers. It launched a new loyalty
program earlier this year and a storefront on Amazon.com Inc.
Both Rite Aid and GNC have been hurt by declining foot traffic
in brick-and-mortar stores and increased competition from online
retailers such as Amazon.
Mr. Martindale joined Rite Aid in December 2008 and became the
company's first CEO of stores in August 2015.
Bryan Everett, an executive vice president at the pharmacy
chain, was promoted to the newly created position of chief
operating officer of Rite Aid Stores following Mr. Martindale's
departure. He will report to Rite Aid CEO and Chairman John
Standley, who remains in his roles.
Rite Aid shares are down 71% this year, and GNC shares are down
27% this year.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
September 06, 2017 10:12 ET (14:12 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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