FULL BODY WORKOUT A REVIEW OF THE CENTRAL LONDON GYM MARKET


BUDGET & MID-MARKET


Due to the erosion of the mid-market model, a trend which is being mirrored in many retail and leisure sectors, there has been increasing competition from all other parts of the market, most notably the low -cost sector.


Its expansion has been driven by both single site acquisitions and corporate activity, such as PureGym’s acquisition of Soho Gyms and its ten fitness clubs in central London in June 2018; as a result, 20 per cent of all floorspace is now in a low-cost operating format.


The low-cost model has been championed growing the sector by offering affordable fitness to a high number of people. While some use this as a stepping stone as they seek a healthier lifestyle, many consumers are opting to mix and match by retaining a low-cost membership and supplementing it with pay per class experiences at studio gyms. Despite its apparent budget offer,


the low-cost model has continued to evolve with new equipment and many now offering a raft of free classes.


Having successfully acquired and rebranded a number of former mid-market clubs in the capital, the boundaries between these two operating formats is becoming increasingly opaque. Analysis of our rental database found that, on average, low-cost operators are paying £2.70 psf more in rent than midmarket groups. We anticipate this to be a result of competitive bidding scenarios and the race for space led by The Gym Group and PureGym.


With further representation in the capital clearly on the horizon and an evolved design in a bid to appeal to the capital’s gym goers, the low-cost model looks likely to continue to be a key driver for growth and consolidation in the sector.


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