HEALTH & FITNESS
ROB GREGORY
From leg warmers and the introduction of monthly payment plans to mobile phone applications, Rob Gregory looks back at 30 years in the UK health and fi tness industry
T
he metamorphosis of the gym in the last 30 years has been dramatic. This change began with product innovation and a handful of indi- viduals well ahead of their time. The UK was led by the US – Jane Fonda launched her workout DVD, Arthur Jones created Nautilus
and Bally acquired the Lifecycle. These products, and oth- ers, changed the image of the traditional gym. Over the next 25 years, the evolution of fi tness equipment continued to have a major impact on health clubs. Some of the winners were the Stairmaster, the Elliptical, the Spin Bike and the TG Key System. On demand entertainment also transformed the user experience.
THE EARLY VISIONARIES At the beginning of the 1980s, Harm Tegelaars, David Lloyd, Lawrence Alkin and Allan Fisher, and a decade or so later Mike Balfour, began to make their mark on the UK health and fi tness industry. It’s a testament to their achievements that their original visions and business empires still exist today. The US had its own visionaries, most notably Mark Mastrov, who built his fi rst club in 1983 and went on to build the largest wholly owned group of clubs in the world. One of the critical events during this early phase of
growth was the pioneering use of electronic funds transfer. This, coupled with the adoption of month to month pay- ment plans, opened up gym membership to the masses. Demand outstripped supply and during the 1980s and most of the 1990s the industry experienced double digit growth
and exceptional returns on capital. This in turn stimulated a number of new entrants and Esporta, LA Fitness and Duncan Bannatyne entered the market. Fitness First and Holmes Place also entered Europe in the late 1990s.
A STEP TOO FAR This hive of activity, several high value transactions and a business with predictable cash fl ows caught the attention of the City. Following in the footsteps of Holmes Place in 1997, Fitness First, LA Fitness and Cannons all listed on the London Stock Exchange in 1999. At the same time Virgin Active was launched. The industry had come of age. In the year 2000, JJB Sports became the last major new entrant and clubs openings peaked in 2001 with 172 new clubs opening that year. A few years later, several major operators delisted, and a recession coupled with over- aggressive expansion and poor site selection meant the health and fi tness industry had its fi rst setback. It refl ected a move into maturity with greater competition and a slow- down in growth. Private equity funds picked up the pieces and the industry entered a new phase.
MARKET MATURITY AND FRAGMENTATION Slowly and quietly, local authorities, management contrac- tors and leisure trusts have increased their investment in health and fi tness in the last decade. In many cases this has resulted in local authority centres on a par with private clubs. More recently the arrival of the budget operator has caused added concern for existing operators. While this
Technology is having a huge impact on the industry, with products like Suunto (right) and dailymile (below) helping people track their fi tness levels
54
Read Leisure Management online
leisuremanagement.co.uk/digital
ISSUE 1 2011 © cybertrek 2011
PHOTO:
ISTOCKPHOTO.COM/©; ELIZA SNOW
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76