The Vitamin Shoppe opens digital business in China
The Vitamin Shoppe is partnering with Macy’s China Limited to bring its product assortment to Chinese consumers, offering a mix of private label products as well as some third-party brands via Alibaba’s online shopping platform, Tmall Global, according to a statement from the company.
After the announcement, the retailer’s stock soared by 11.21% in premarket trade on Monday, MarketWatch reported, a welcome change during a year of financial woes for the retailer.
International expansion
In the past two years alone, The Vitamin Shoppe expanded in South America, opening stores in Paraguay, and expanded its presence in Central America with franchise stores in Guatemala, Panama, and Costa Rica.
It’s a move that the company is hoping will make-up for the slowdown in domestic sales, company execs said during an earnings call in January.
For its new China operations, The Vitamin Shoppe's product will be shipped from its new west coast distribution center in Arizona.
“By utilizing its Arizona distribution center, The Vitamin Shoppe's goal is to deliver products to the Chinese consumer in less than two weeks, enabling the partnership to be one of the quickest suppliers of vitamins, minerals and supplements from the United States to China,” according to the company.
"This is another example of the different strategies and partnerships we are pursuing to expand our reach and enhance the customers' experience,” said David Denker, the company’s director of international development.
“The Asian vitamin, mineral and supplement market is an attractive market for us exhibiting a growth rate of 6% per year and is projected to reach $20 billion in the next five years, according to Nutrition Business Journal, and we are pleased that we are able to secure ease of entry into China."
