property profi le
GETTING FOCUSED W
ith the launch of its budget arm, Klick, last month and with the closure of 18 German sites in August,
changes are afoot for Fitness First. Critics say the group is playing catch-
up, trying too late to grab a stake in the low-cost sector as its clubs struggle to compete. But CEO Colin Waggett says the group is simply sharpening its focus. Here, we fi nd out more about Fitness First’s strategy at home and away.
OVERVIEW
“Our major growth focus as we look forward is on the major conurbations,” says Waggett. “About three quarters of our business comes from 21 key cities around the world: London,
Fitness First is the largest privately owned health club group in the world and currently operates 540 clubs worldwide, with over 1.4 million members in 21 countries. In the UK alone, there are 159 Fitness First clubs with over 400,000 members. Jo Talbot talks to CEO Colin Waggett about the group’s property strategy
Frankfurt, Berlin, Bangkok, Singapore, Sydney, Brisbane and so on. Since about 2004, the absolute vast majority of our new club openings have been in those major conurbations. “That’s distinct from, say, the late 90s
and early 2000s, when there was a much broader expansion strategy – particularly in the UK, where we have lots of clubs in much smaller towns. “How do we then segment our
portfolio? We recognised that convenience, price and service were the main drivers of club choice, so we pick the best locations in each catchment area we want to be in, but then we fl ex our price point according to the location and the service offering. In the UK, we have clubs that are priced at £25 a month, £75 a month and pretty much everything in between. We offer Blue, Platinum and Black Label clubs, as well as the new budget arm Klick, in order to charge the appropriate price for the appropriate catchment area. That’s what we’ve been doing for some considerable time.
Fitness First UK members pay between £25 and £75 a month depending on the type of club and its location
38 Read Health Club Management online at
healthclubmanagement.co.uk/digital “But underlying that, the essence of all
our Fitness First clubs remains the same. Our brand is about energy, passion and it’s all about fi tness, as distinct from some of our competitors who might offer a broader range of wellness services, or racquet operators.” At the same time, he says, the chain is
focusing on differentiating itself in terms of service, investing heavily in improving the calibre of its staff, as well as in functional training and group exercise.
THE BUDGET ARM Nine Klick Fitness clubs opened last month, mostly in north-west England and all converted from existing Fitness First sites: Aintree, Bradford, Bromborough, Ipswich, Sheffield, Stoke, Wakefield and two in Manchester. Membership is £11.99 a month or £119.99 a year. Critics like Colin White, commercial
leisure analyst at Edward Symmons LLP, say Fitness First is being reactive not proactive, joining the low-cost market late and converting clubs that aren’t working to Klick Fitness rather than building new clubs. He says: “They’re not looking at the catchment area and asking ‘is it right?’ A low-cost club
october 2011 © cybertrek 2011
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