- Management Changes – As previously announced, the Board has made several changes to its executive staff over the past nine months including appointing Jeffrey Horowitz as Chief Executive Officer and Steve Markert as interim Chief Financial Officer. In addition, the Company has recently named a VP of Human Resources and also named a new Director of Manufacturing. The Company is currently conducting a search for a Chief Operating Officer.
- Revised Marketing Plan – New customer additions are a top priority in 2011 as the Company believes that due to the high number of repeat purchases made by customers – an expanded base will create long-term value. To that regard, the Company has decreased spending on print advertising and is reallocating advertising dollars to on-line and other media channels to accelerate the pace of customer growth. Also, the Company has instituted ‘free-shipping’ and other promotional measures which should continue throughout the year.
- SKU Expansion in Key Categories – The Company has accelerated the pace of new product launches for its proprietary products and expects to launch more than 100 new SKUs in 2011. The Company continues to add third party SKUs in faster growing categories such as personal care, organic foods and sports nutrition.
- Moving Virtual Inventory In-House – The Company is in the process of bringing more than 12,000 former virtual inventory SKUs in-house to accelerate order fulfillment and delivery time. This would effectively eliminate virtual inventory offerings.
- Vitacost Brand – The Company is in the process of rebranding its proprietary NSI supplement line to a new ‘Vitacost’ label to increase brand and Company awareness. This process began in April 2011 with the majority of the transition to be completed by the end of the year.
- Shipping Policy – In order to improve customer service, the Company changed its shipping policy in the fourth quarter of 2010 to allow for splitting and transferring orders between warehouses to expedite the fulfillment process.
- Increased In-House Manufacturing – The Company performed a formal review of the products it manufactures in-house and brought back 83 proprietary products that were previously manufactured by third party suppliers.
- Operational Investments – The Company is making infrastructure investments in 2011 to position the Company for future growth. The Company will spend an estimated $3 to $5 million in 2011 for further improvements on its two distribution centers and its manufacturing facility.
Vitacost.com Announces Conclusion Of Strategic And Internal Reviews
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