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. Meanwhile, newer budget operators like Pure Gym 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 Key Buyers Chapter
The industry has a low level of concentration and the top four players are estimated to account for 18.6% of industry revenue in 2014-15. Despite the presence of several very large players, there are still many small independent gyms operating across the United Kingdom. These gyms serve their local areas and tend to employ fewer than five people. The larger players in the industry have numerous locations throughout the United Kingdom, but small players are generally independently owned and operate in just one or two regions. There is a trend for larger companies to expand their operations to improve economies of scale.
Franchising has proven an effective method of expanding and the growth of franchises has contributed to rising concentration... purchase to read more