interview
Amida Spa: The DLL sub-brand will now have a greater wellbeing element introduced, encompassing relaxation as well as treatments
of this year. What will the balance be between UK and international development going forward? “There’s still a signifi cant opportunity
in the UK,” says Lloyd. “We’ve already identifi ed 20 or 30 locations currently without a club of our kind, but with the right demographic profi le, and I can easily see us moving from 80 to 100 clubs in the UK, opening probably one or two new clubs a year. “However, although over the next year
or so the balance of investment is likely to be fairly equally split between the UK and international development, the pace is likely to shift over time with international development taking priority. Ultimately I’d expect to have at least twice as many clubs opening overseas as in the UK each year. Although territories such as the Gulf are included in our plans, the focus will be on European markets at this stage – we’re not currently looking at markets such as the US or South Africa, for example.” So is the model likely to change to
adapt to different consumer needs and mindsets in new markets? “We already have experience in four European markets – we currently have 80 sites in the UK and 10 in Europe – and yes, the mix of facilities can vary a bit. In Barcelona, for example, we don’t have indoor tennis but we do have padel tennis courts – a fast-paced game that’s popular in Spain, and that in fact we now plan to introduce to the UK. However, although the offering fl exes slightly to the local environment, the business model is consistent throughout.”
32 Presumably DLL would not, therefore,
consider adopting the sort of segmented approach that’s proved successful for European market leader HealthCity International, whose portfolio encompasses premium, mid-market and budget clubs? “No,” says Lloyd emphatically. “Our focus is very much on premium, family, integrated clubs that drive long-term sustainability, good retention levels and retail revenues. “The budget model may have exploded
recently in terms of number of sites, but I still remain to be convinced of the long- term sustainability of the model, and it’s certainly not an area we’ll venture into.”
product portfolio So what are the key areas of focus for DLL going forward? “We’re working hard to be innovative in how we develop our sub-brands and products, focusing on the things we’re good at and continuing to evolve and grow in these areas,” says Lloyd. “These contribute to the differentiation of our business relative to the traditional definition of the health and fitness industry. “Increasingly we’re becoming more of
a Centerparcs or a Merlin – a much broader leisure business that in our view doesn’t really sit within the health and fitness sector. We now have a whole armoury of strong concepts we can put in place every time we build a new club or undertake a redevelopment.” Those business-differentiating sub- brands include DL Kids and Amida
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Spa, as well as an improved food and beverage offering introduced under the DL Café Bar brand, which has won a Midas award for best menu in the sport and leisure sector. “Amida is already a strong brand, and
we now think there’s real potential in introducing a greater wellbeing aspect to the concept – not just treatments but relaxation too. We’ll be incorporating this into the Amida Spa in the new Farnham club, which will be open to non-member day spa guests as well as members – a full relaxation experience that will operate as a separate entity within the building, with a separate entrance. If it works well, we’ll roll it out to other sites. “Our kids’ offering, meanwhile, is a
key differentiator for us and is very much part of our investment strategy for both existing and new clubs. We have a number of different models for DL Kids based on size and investment level, right up to the full-scale offerings in Raynes Park, Leeds and Finchley – and soon to be in Beckenham, Hampton and Farnham. Those sites typically measure up to 930sq m (10,000sq ft), with a number of activity rooms and spaces as well as an educational aspect – IT rooms, for example. We’re also developing our All Stars brand – originally launched to offer tennis tuition for kids, and now also encompassing swimming – to cover tuition for kids in other sports.” Not only do the sub-brands help differentiate the business, but they
september 2011 © cybertrek 2011
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