Fitness First’s UK portfolio includes six
Black Label clubs, one of which is located in London’s Baker Street
Throughout south-east Asia, there are operations in Hong Kong, the Philippines, Singapore, Malaysia, Thailand and India. Waggett says: “Our expansion strategy
internationally is for major conurbations. We’ll open in the region of 30–40 clubs next year and all of those will be in the top cities of those major countries.” The largest number will be in Asia, followed by Australia; Germany will receive about the same number as the UK (three- quarters in Asia/Australia and the rest split across the UK and Germany). But while Fitness First will continue to
grow in Germany, there has been some rationalisation, with 18 outlying clubs closing and the focus shifting towards the development of higher-end clubs in the country’s main cities. Meanwhile there have been exits from
other European countries. In November 2010, Fitness First sold its 57 Benelux clubs to HealthCity International, specifi cally to redirect resources and management focus into Asia. A proposed takeover by HealthCity of all 45 Fitness First clubs in France, Spain and Italy was then announced in May of this year. “We’re not in the business of planting
fl ags in as many countries as possible. We have an expansion strategy, and when we looked at the markets and the portfolios in those various countries, we decided we’d rather focus our precious capital and management resources elsewhere
– in countries where we saw the best long-term growth opportunities.”
october 2011 © cybertrek 2011
He adds: “Potential for growth in Asia
is just colossal. For example, we have 11 clubs in Singapore, two of which opened in the last 12 months, and we already know where we want to put the next 11.” Other Asian markets are currently
under review, but Waggett prefers not to reveal details at this stage. Expansion of the business overseas is
managed by locally placed teams which decide where to locate the clubs and also what type of club they should be – Blue, Platinum or Black Label. “All the clubs are centrally reviewed and approved by the board, but the local management team are the ones who fi nd the sites and decide which format. However, the brand guidelines are consistent,” says Waggett. There are no imminent plans to expand Klick overseas.
RAISING THE BAR Waggett sums up: “I see quite a considerable change in our industry for the next few years. I think there will be a scrabble for space in the budget market, but after a while it will settle down.
International expansion plans for 2012 are to open 30–40 clubs, all in major conurbations
Beyond that, I believe what customers want is a raising of the service bar in our industry. It’s been written about and talked about ad nauseum and it’s a question of actually making it happen. “Those who are successful in making
that happen will thrive and those who aren’t, won’t. That’s not that dissimilar to any other sector as it matures – take retailing or hotels, for example. People don’t do anything that’s materially different from the others, but those that give a disappointing experience fall by the wayside. “We’re offering exactly what our
members are asking for: more time and effort giving people the results they want, as well as value for money. The right service for the right price, in the right location.”
healthclub@leisuremedia.com jo talbot
Read Health Club Management online at
healthclubmanagement.co.uk/digital 41
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