Industry Analysis & Industry Trends
The Gyms and Fitness Centres industry has run into trouble during the past five years. During the previous decade, the industry went from strength to strength as rising concern for health and supportive economic conditions underpinned strong growth in revenue and establishment numbers. Since 2008-09, however, consumers have focused on their economic concerns, so many have chosen to cancel their gym membership and exercise independently at no cost. Other gymgoers have traded down to a new breed of budget gyms, which do not require long-term contracts and charge less because they only offer basic services. As a result, established players like Fitness First and LA Fitness have suffered from falling membership and been forced to sell or close gyms... purchase to read more
Industry Report - Industry Investment Chapter
Gyms have always been both labour and capital intensive, and both the complexity of fitness equipment and the numbers of personal trainers have gradually increased over the past decade. These are the two strongest points of differentiation when gym location is removed. This means that the cost outlay for the average fitness centre is relatively similar for equipment and labour over a year. For every £1.00 spent on capital requirements, £2.64 is spent on staff wages. As seen in the cost structure, wages are estimated to account for 31.2% of industry revenue in 2013-14, while capital costs (represented by depreciation expenses) account for 11.8% of revenue.
Capital requirements include the cost of fitness equipment, buildings, furniture and computers... purchase to read more