Back
~
1
min read
· Posted on
February 21, 2024

Jenny Craig's major slim down: Its stores are left hungry for a buyer, while online business is scooped up

Jenny Craig's Australia and New Zealand stores would be shutting down trading completely.

What's the key learning?

  • Jenny Craig's Australia and New Zealand stores are shutting down after the 15 interested parties that were looking into buying the business backed out.
  • Health start-up Eucalyptus swooped in last minute to buy out Jenny Craig's online business.
  • Eucalyptus is actually buying Jenny Craig's customer data and it now has a whole pool of customers that they can offer their own weight-loss products to to grow their sales and their market share.

👉 Background: Jenny Craig is an iconic name in the weight loss industry. It even had some major celebs endorse the brand back in the day, including Mariah Carey, Kirstie Alley, and Jason Alexander.

👉 What happened: Now, Jenny Craig's administrators have officially announced that the Australia and New Zealand stores would shut down trading completely. That's after the 15 interested parties who were looking to possibly buy the business said 'no deal'.

👉 What else: But in a major twist, health start-up Eucalyptus swooped in last minute to buy out Jenny Craig's online business.

What's the key learning?

💡As many say, data is the new oil. By buying the online services of Jenny Craig, Eucalyptus is actually buying Jenny Craig's customer data.

💡Eucalyptus now has a whole pool of customers that they can offer their own weight-loss products to to grow their sales and their market share.

💡We've seen these strategic acquisitions play out before:

  • Kogan acquired the online services of Dick Smith, and they gained 1.3 million active subscribers that added to their own database.
  • Woolworths acquired grocery delivery start-up Milkrun and planned to use the latter's brand and customer data to grow their own grocery delivery service, Metro60.

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating