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Vitamin Shoppe: Good Long-Term Prospects But Margin Pressure Likely This Year

According to the Nutrition Business Journal (NBJ), the US Vitamins, Minerals and Supplements Industry has 6.5% compounded annual growth potential by the year 2020. The online sales are projected to grow at an almost double pace at 12% annual growth. Industry prospects look good for the future with the aging US population and resultant increased spending on health and wellness.

The VSI industry is a fragmented industry where the top 4 specialty retailers have less than 12% market share. Whole Foods Market (NASDAQ:WFM) has the largest market share of 5% and Vitamin Shoppe (NYSE:VSI) has only 2.9% share. Retail stores are investing in value added services and in-store services to attract more customers to their stores....

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