PowerPoint Presentation
From Data to Delight: An Insight-Driven Revolution of the
In-Store ExperienceROD SIDES, Retail, Wholesale and Distribution
Leader, Deloitte LLP, ModeratorMIKE MAULER, EVP and President,
GameStop International, GameStop CorporationCOLIN WATTS, Chief
Executive Officer and Chief Health Enthusiast, The Vitamin
Shoppe
Good morning everyone. Big hand to Mike Mauler? Stunning stuff
from GameStop.My name is Colin Watts,Chief Health Enthusiast and
CEO of the Vitamin ShoppeTalk about dual title later.3
Not familiar with Vitamin ShoppeOne of the first Health and
Wellness retailersCelebrating our 40th anniversary Founded here in
New York City Long history of leadership and growth4
Havent always talked about ourselves as a Health & Wellness
retailerIll be honestnot in love with the term Health and
Wellnessambiguous descriptor many forms over many generations So
today Ill share our Vitamin Shoppe story which is one of a
transforming consumer riding one of the biggest Mega-Trends of this
generation reinvent a retail experience to match that
intensity.5
In the past
Take a step back to look at the consumer trends60s, Wellness was
truly a fringe phenomenon: peace, love, granola and yoga70s brought
us the advent of the calorie counting craze and an obsession with
self help gurusThen low-fat diets, spandex and the aerobics wave90s
had us cutting carbs, checking nutrition labels, and cardio
kickboxing6
Not surprising that people historically equated Health &
Wellness tofad diets trendy exercise regimens and anIndustry overly
focused on pills and powders7
Fast forward to today Wellness is no longer a fringe or fad
notionFor this generation a total lifestyle choice Food, ideas and
exercise that were once on the fringe are now mainstream Represent
billions of dollars of consumer spending that continues to grow
every year8
striving for the Good Life.9
QUESTION
A
Think about yourself 10
How many of you got 8 hours of sleep last night? How many of you
think you had a healthy, balanced meal in the past day? How many of
you feel stressed out, overworked, overwhelmed?
11
Now how many of you are doing something about it? Wearing a
fitness tracker? Anyone switch to a standing desk at work? Making
the choice to add more protein to their diets? Paleo diets? Gluten
free?More than ever, people are looking at wellness as a lifestyle
choice,Not a fad, but a way to live your best life as your best
self.12
This is both amazing and unsettling newsOn the one hand, there
has never been a better time to be in Health and Wellness 13
DRUGSTOREBIG BOXONLINE
On the other hand, we have never seen more fierce competition:
Everyone from drugstores to mass merchants to online Have been
dabbling in selling nutritional supplements14
We had begun to see signs that parts of our core offering was
becoming commoditized. 15
Our challenge wasnt just reinvigorating our retail experience,
we needed to reinvent our business model
16
About 2 years ago, working with our partner, Jackman Reinvents,
We embarked on our journey to transform the Vitamin Shoppe17
and the first step was to stop looking at our business strictly
from a transactional perspective
18
and begin to deepen our holistic understanding of our customers
Focusing on uncovering the role we could play to help them reach
their lifestyle goals19
MALE27 YEARS OLDCOLLEGE GRAD$527 SPENDING
For instance, a typical retailer might look at simple customer
demographics and transaction datathat would report a customer like
this20
DAD
TENNISPLAYER
SAILORWho am I?
where at the Vitamin Shoppe We are engaging our customers with
profile data like mine here
With a goal of unlocking their total life ambitions and
needs21
&ANDREWDONNA
Once we better understood our core customersWe found that 70% of
our sales come from two types of people Donna and Andrew22
GOAL SETTERS
Women and men like Donna are motivated lifelong goal
setters.They are looking for ways to continuously improve: Eat
better, sleep better, build muscle tone and strength for everyday
life
Andrew represents men and women that are in-the-know health
& fitness advocatesThey are tricky customer to serve because
they stay so well informed and ahead of the curve when it comes to
innovation.But they are always looking to try something new and
appreciate external validation of their knowledge
23
Changing our lens from customer transactions to human
relationships We realized that we needed to join Donna and Andrew
on their journeys To meet our customers needs, our proposition
needed to change from selling pills and powdersTo becoming a
trusted partner on our customers wellness journeys A partner who
would not only provide inspiration but solutions
In focus groups, the lack of a trusted source for advice would
come up again and again
24
FAMILY
People were turning to all kinds of sources like family,
friends, media and online looking for answers25
FRIENDS
26
MAGAZINES
INTERNET
For complex and highly personalized health & lifestyle
choices
28
What people were looking for was someone to engage with in their
everyday life
And here is where our competitive advantage as a retailer became
apparent
our Vitamin Shoppe Health Enthusiasts.
29
CLICK ONCE AND SLIDE WILL BUILD AUTOMATICALLYWe learned that our
best Vitamin Shoppe Health Enthusiasts already filled that role -
but there was an opportunity to do this more systematically and
consistently at all our customer touchpoints
You see, the Health Enthusiast is a special breed by design We
actively recruit and then train and develop men and women who take
great joy out of living healthy lifestyles and imparting expertise
and knowledge to their customers. If youve ever worked with a great
fitness trainer, think of our Vitamin Shoppe Health Enthusiasts as
great wellness trainersThey inspire you to be your best self every
day Earlier I mentioned my dual title? Everybody at The Vitamin
Shoppe is a Health Enthusiast.let me share a quick video that
really captures our culture and our ethos30
HUMANIZEDIGITAL
So today, here at The Big Show, we wanted to take the
opportunity to unveil some of our most recent steps in our
transformationSteps we have taken to transform both our digital and
retail experience
CLICK SLIDE MOVIE WILL PLAY AUTOMATICALLY
31
A few months ago, we started to rollout a dramatic retail store
transformation that moves our retail experience from overwhelming
shelves of pills and powders into a true healthy lifestyle
destinationA place where people could come to learn and be inspired
We remerchandised and redesigned the store experience from top to
bottom to support Donna & Andrew on their journey32
We started with a dramatic upgrade of the exterior33
To create a beacon for customers driving by our new store
34
We gutted the old store to create three distinct zones:The
entrance and foyer was designed to Embrace our Customers; An
innovation zone that is our Engagement area; And a comprehensive
product solution area that is our Empower Zone.35
There are also tons of surprises and delights: A Kombucha-On-Tap
Bar where we convene Kombucha happy hours for our customers 36
The most comprehensive Healthy Beauty section weve seen in the
country 37
An industry first sports protein sampling and tasting
station38
A Solutions Wall, where we highlight the most important Wellness
interests of our customers and provide them with a variety of
solutions to address their challenges.39
Weve even installed a comprehensive Aroma therapy bar40
And the first of its kind Fit freezer case41
and finally, our gathering place in the heart of the store
our Health Enthusiast Solutions Bar 42
where our SPARK workshops and 1/1 nutrition sessions come to
life...43
We spend time with individual customers, providing
nutritionist-led 1x1 consultationsAnd multiple evenings a
week44
We also conduct our signature Spark Workshop sessions to teach
and inspire our customers on a variety of wellness topics45
WERE ALL YOU NEED ON YOUR JOURNEYTO YOUR BEST SELF.
Wed like to think that with our new transformationWere all you
need on your journey to your best self46
Altogether, you can see that Vitamin Shoppe is transforming
from;a purveyor of pills and powdersto a Trusted Authority for
those engaged in a healthy lifestyle.
In summary, our transformation was borne out of -
47
DEEPLY UNDERSTANDING OUR MARKET
Deeply understanding our market48
ALIGNINGOUR BEHAVIORTO OUR CUSTOMERS
Aligning our behavior to our customers49
UNCOVERING AND AMPLIFYING OUR COMPETITIVE ADVANTAGE
Uncovering and amplifying our competitive advantage50
BUILDINGLONG-TERM RELATIONSHIPSTHAT BENEFIT PEOPLE
Building long-term relationships that benefit people51
So I hope you now can understand how at the Vitamin Shoppe, the
term Health & Wellness falls a bit short.Weve transformed that
too.52
THRIVE.
Our research supported that what todays consumer means by health
& wellness shifts from the passive to active engagementThey
want to engage with retailers who are prepared to make that leapOur
new mission is a focus on Nourishing bodies and inspiring minds to
help people thrive every day. In turn, they have helped our
business thrive too.
53
3xFIRST TIME CUSTOMERS
3 times the number of first time customers54
2xLONGER IN STORECustomers Spending Almost
Spending 2 times longer in store55
91WOULD RECOMMEND TO FRIENDS/FAMILY%
91% likelihood to recommend us to a friend56
Thank you for your time and your attention this morning, andI
hope each of you continue to thrive every day.57