GNC Holdings Inc (GNC), Rite Aid Corporation (RAD): This Health and Wellness Retailer Continues to Impress

The company has been remodeling its stores with a focus on its wellness offerings and having employees become wellness ambassadors. This initiative helps guide and inform customers of the wellness offerings available in each Rite Aid Corporation (NYSE:RAD) store. In 2010, Rite Aid also launched its wellness+ customer loyalty program. Rite Aid is following that up now with its wellness65+ to target seniors and increase the customer relationships to make the retailer their pharmacy of choice. The end goal for Rite Aid is transform its stores into neighborhood destinations for health and wellness.

Competition

A smaller competitor to GNC Holdings Inc (NYSE:GNC) in the nutritional supplement retail market is Vitamin Shoppe Inc (NYSE:VSI). Vitamin Shoppe operates over 600 retail stores in the U.S. and Canada. In Canada, its stores operate under the Vitapath name. The company also sells its products through its e-commerce website.

This year, Vitamin Shoppe Inc (NYSE:VSI) closed on its acquisition of 31 Super Supplements locations in the Pacific Northwest. Going forward, the company plans to open an additional 50 stores in the U.S. to fuel growth. The company is also looking to bring more nutritional products to the market and increase its total number of items for sale in its stores and online. Vitamin Shoppe is looking to expand its Mytrition multipack vitamins for men and women and is also looking to launch a natural sweetener. Both appeal to the health-conscious consumer.

Foolish assessment

After its recent phenomenal earnings report, GNC is the health and wellness retailer to own. It also has a lower PEG ratio than Rite Aid Corporation (NYSE:RAD) or Vitamin Shoppe Inc (NYSE:VSI). Rite Aid is still in the middle of its turnaround and has more work to do in reducing debt and increasing profitability. Vitamin Shoppe is working to integrate its recent acquisition of Super Supplements and compete with GNC. Meanwhile, GNC is focused on its core business. GNC expects earnings per share for 2013 to increase 21% to 24% over last year’s results. For these reasons, GNC continues to impress and be the health and wellness retailer to own.

Mark Yagalla has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article This Health and Wellness Retailer Continues to Impress originally appeared on Fool.com.

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