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» Canadian Forum
Canadian wallets
shrink
BY DAVID HARDY
H
ow will the current economy impact the Canadian fitness industry? The latest research produces con-
flicting results. During economic downturns, some of the first expens-
es put on the chopping block are so-called “luxury” items, like restaurant meals, entertainment and even fitness club memberships.
Dave Hardy
ThinkPanmure
However, a recent survey conducted by ThinkPanmure shows the future of fitness in Canada to be prosperous. Its results suggest that there continues to be a strong trend to- ward health and wellness and that consumers are less likely to cut back on products and ser- vices that promote health and well-being. ThinkPanmure surveyed 100 Canadian con-
sumers regarding their plans on coping with an impending recession. The results of its survey are as follows:
• 76% plan to curb vacation spending • 75% plan to dine out less • 48% plan to spend less on play-related clothing • 40% plan to cut back on take-out coffee related expenses
• 23% plan to cut back on groceries • 13% plan to cut back on gym memberships • 10% plan to cut back on healthy food purchases
Note that this research surveyed 65 respondents with
average household incomes over $175,000; 54 of the respondents made over $250,000. According to Stats Canada, the average Canadian family earned $61,221 in 2006. Given this information, we can assume that the number of people planning to cut back on fitness member- ships will be greater than 13%.
Merriman Curhan and Ford
We can take some comfort in knowing that the U.S. fitness industry seems to be weathering the storm, according to a recent report conducted by Merriman Curhan and Ford. Its results show that there continues to be a global trend to- ward maintaining an active lifestyle and that the global fit- ness industry has historically been resilient to recessions. The report suggests that many gym franchises and small gyms will suffer but that larger well-established gyms, that provide many ancillary services, should fair far better.
62 Fitness Business Canada January/February 2009
IHRSA
The International Health Racquets & Sportsclub Association (IHRSA) also suggests that the U.S. commercial fitness industry will remain strong. It polled 18 leading fit- ness chains with a total of 193 commercial facilities. The results show that clubs actually grew their total revenues by an average of 15% during the first quarter of 2008. In addition, total membership sales increased by an average of 9.7% in the same period.
Fitness Business Pro
However, despite these positive research results, Fitness Business Pro recently published an independent study of more than 100 U.S. fitness clubs. It revealed that since the first quarter of 2008, attrition rates increased by more than 25% and new membership sales were down. Even though Canadians rate their health and well be-
ing as a top priority, we can assume that consumers will be looking for ways to cut back on their current spending which will include the purchase and maintenance of fitness memberships. Club members may move to less expensive fa- cilities or leave their clubs entirely and stay active by walk- ing or cycling to work instead. As an industry, we
must continue to remind our current and potential clients that the cost of a fitness membership is low compared to the adverse health affects of inactiv- ity. The minimal cost of a fitness membership and making time to really use it is more important than ever. Keeping active and social, through the use of a fitness club, will be one of the best ways to get through this potentially difficult time. FBC
David Hardy is president of Fitness Industry Council of Canada, the national not-for-profit association that represents the Canadian fit- ness industry.
For more information, check out these reports
Merriman, Curhan, Ford
(2008) “Fitness and Wellness – Consumer/Internet/Media Industry Report.” 135 East 57th Street, 24th Floor, New York N.Y. 10222
ThinkPanmure (2008)
“Think Consumer: Green Living – Think Survey Shows High Income Consumers Cutting Back In Recent Days.” ThinkPanmure LLC, 600 Montgomery Street. San Francisco, California 94111.
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