INDUSTRY INSIGHTS
Brand name Fit4Less
The Gym Group FitSpace
Gym London Pure Gym
Fitness4Less Springslite
Figures quoted as at October 2010 Compare this to a traditional club, which may have many
membership types and prices, requiring a sales consultant to discuss – and sell – the many options. Choice is often good, but too much can lead to ‘choice trauma’.
affordability Many first-time gym users are being tempted to try a low- cost club for two fundamental reasons: firstly, a price point that’s at least 50 per cent lower than the UK average, and secondly a no-contract proposition that means consumers can try it out, safe in the knowledge that they can leave at any time. This creates a low-risk offer that’s very attractive to first-time gym consumers.
LOW-COST EXPANSION Several European countries, such as Germany and the Netherlands, have been providing low-cost gyms for more than 13 years, so the concept is very well established in some regions. For example, McFit – Europe’s leading low-cost gym business – has been trading for 13 years and should have one million members by March 2011. It’s transforming the German club market and growing rapidly (see Figure 2, p78). My opinion is that the low-cost gym sector in the UK
now also has a strong sense of momentum. Several brands have recently raised fresh funds that will allow them to quickly ramp up their club portfolio. Essentially, they have an economic window to take advantage of attractive and affordable property, and this is allowing some brands to build very strong assets. Most will be spending the next few years building market share in the UK, but some also have overseas
80 Pure Gym is expanding its portfolio via new clubs
aspirations. For example, Fit4less – the énergie Group’s low-cost brand – has just opened a low-cost club in Qatar, although it does not strictly follow my low-cost gym definition. Figure 3 (above left) shows the UK’s leading low-cost
gym brands as at October 2010, by number of clubs open. Brands are following two distinct property strategies: companies such as The Gym Group and Pure Gym are developing new clubs by converting building shells, while brands such as FitSpace and Fit4less are converting existing or ‘legacy’ clubs to a low-cost model.
PETER ROBERTS, MD, PURE GYM
Q: How resilient do you feel your business model is as the UK comes out of recession and consumers start to feel more prosperous? A: This is always something of a risk, but people of all sociodemographic groups use easyJet, even in the good times. The biggest threat is leasehold properties and rents rising in value, which could make the model uneconomic.
Number of clubs 9* 9 8
7** 7 3 1
FIGURE 3: UK’S LEADING LOW-COST GYM BRANDS
* includes four recently acquired nuyuu sites ** only includes gyms charging less than £20 a month
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 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212 |
Page 213 |
Page 214 |
Page 215 |
Page 216 |
Page 217 |
Page 218 |
Page 219 |
Page 220