Jenny Craig, one of the longest-standing weight loss and dieting companies in North America, is closing down all of its physical centers in the US and Canada. Amidst struggles with around $250m of debt, the company is looking to transition to an entirely e-commerce-based model in a bid to revitalize its flagging fortunes and fend off increasing competition from weight loss drugs and similar diets. Jenny Craig, which has been operating since 1983, has already overseen the acquisition of weight loss support platform Simple Inspirations and has been promoting an app-based offering to consumers.
The move follows a trend seen across numerous other businesses and sectors throughout the pandemic period as merchants struggle with declining footfall in physical establishments and changing consumer habits. Organizations like retail outlet Nordstrom and fast food giant McDonald’s have been accelerating their digital transformation strategies, whilst the popularity of online shopping has soared, and both Google and Facebook have invested heavily in e-commerce features.
As well as closing its physical locations, Jenny Craig is also understood to be seeking a buyer amidst cash flow and debt pressures. In moves familiar to other businesses looking to pivot, the company’s CEO, Mandy Dowson, has advised staff to start looking at alternative employment prospects in case of potential layoffs due to the wind-down of physical operations.
While the success of e-commerce pivots among traditional brick-and-mortar stores is mixed, there is cause for optimism. With customers willing to pay a premium when they have a closer emotional connection to brands, a strong online presence offering personalized support could be a welcome change for some. Though the financial viability of repositioning such businesses is still in question, there continue to be opportunities to differentiate the brand and better meet consumer demands.
Jenny Craig will continue to provide its prepackaged meals, diet plans, and consultations via its virtual chat service, Jenny Craig Anywhere, and its home meal delivery service. Despite job losses, customer support will remain available, giving the company a good chance to demonstrate how a 38-year-old business can stay relevant and compete against the many weight loss and diet options available today.
