Industry Analysis & Industry Trends
The Gyms and Fitness Centres industry has run into trouble during the past five years. Challenging economic conditions have led some gym-goers to cancel their gym membership or exercise independently at no cost. Other gym-goers 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 numbers and been forced to sell or close gyms. Newer budget operators like Pure Gym, meanwhile, have done well, attracting the investment to finance further expansion in the next five years. IBISWorld expects industry revenue to increase at a compound annual rate of 0.8% over the five years through 2014-15... 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, £2.72 is spent on staff wages.
Capital requirements include the cost of fitness equipment, buildings, furniture and computers. The best-performing fitness centres have a wide range of equipment catering to different workout styles and goals... purchase to read more