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features

Ask an expert: A new mid-market?

The low-cost sector has dominated the industry of late, but are new mid-market concepts set to transform the landscape? Kath Hudson asks the experts

By Kath Hudson | Published in Health Club Management 2018 issue 2

The booming budget fitness sector has resulted in clear market polarisation over recent years. Health club operators have increasingly chosen to align themselves with the low-cost or premium ends of the market, rather than sitting in the previously popular mid-market sector. It seems, however, that this space is being reinvigorated by entrepreneurial independent operators – operators that are keen to create an affordable and personalised experience for a potentially large audience of customers.

With concepts based on strength and conditioning, specialist sports advice, solid equipment and expert advice, but without a prohibitive price tag, these operators are proud to call themselves mid-market. They know and value each of their members and are focused on retention, rather than acquisition. And since they are independent operators, they’re setting up shop all over the country instead of targeting big cities only.

Does this trend signal that a shift in the current market make-up is on its way? We asked the industry experts.

Louise Wylie,

Co-founder,

The Club Glasgow

Louise Wylie
Louise Wylie

Surrounded by budget gyms in Glasgow city centre, we deliberately chose to create a mid-market offering that focused on affordability, good kit, a welcoming environment and excellent customer service. We wanted to create a community and make all our members feel they're valued.

There is definitely a gap in the mid-market and I think independent clubs are better placed to fill it than chains. We have full control over our decisions and we can respond to member requests immediately. We also have more freedom to interact in a more personable way on social media, which is really important at a local level. At The Club, we work with local businesses to offer cross-promotions, such as a pop-up barbers, which beds us into the community.

As well as looking after our members, we have the freedom to look after our staff well. We’re one of the few facilities in the area that pays staff for shifts and lets them keep 100 per cent of their PT earnings. Going forward, I think we will see more independent operators come into the mid-market, and a real demand for their service.

"There is definitely a gap in the mid-market and independent clubs are better placed to fill it than chains"

The Club, which boasts its own in-house DJ, focuses on offering quality equipment and good customer service at an affordable price point
The Club, which boasts its own in-house DJ, focuses on offering quality equipment and good customer service at an affordable price point

Rachelle Solan,

Co-owner,

Solan Fitness

Rachelle Solan
Rachelle Solan

Targeting the mid-market was intentional for Solan Fitness. We didn’t want to be budget and we couldn’t go high-end because we didn’t have a spa. Our core values are strength and functional training in a boutique environment, and a hands-on approach to our customers – at a mid-market price.

We experience a lot of demand at our two clubs: the mid-market is a massive space that no one is currently dominating. The budget clubs have helped create a new mid-market audience as they're excellent gyms for introducing people to fitness. However, people plateau after a while and begin to look for more expert advice and attention to achieve better results. It’s at this point that they're happy to invest in themselves and trade up to a mid-market club.

It’s not just former budget gym members that come to us. We also attract spa and racquet club users who no longer want to pay premium prices for facilities they don’t have time to use.

But it’s true that independents remain limited by their inability to scale up. They get stuck at two or three clubs that need the personality, passion and energy of the owner to thrive. This is why we’ve chosen to launch a Solan Fitness franchise. We’re systemising our approach and making cookie-cutters of ourselves, so lots of Solan Fitness clubs will all offer the same quality experience, but in a slightly different environment. We expect to have 15 clubs open by the end of 2018.

"Independents remain limited by their inability to scale up. They get stuck at two or three clubs that need the personality, passion and energy of the owner to thrive"

Strength and functional training are key offerings at Solan Fitness
Strength and functional training are key offerings at Solan Fitness

Stephen Tharrett,

Co-founder,

ClubIntel:

Stephen Tharrett
Stephen Tharrett

Independents have always dominated the mid-market in the US; the big players didn’t evolve until much later. While some marginal mid-market clubs were chewed up by the club chains, the established ones withstood the threat.

There are a lot of successful mid-market players with a handful of clubs in the US. Their qualities are similar to boutiques in that they’re local, tribal and build trust, but with the benefit of a lower price point.

An additional strength of the independents is their ability to be agile. Having no head office means they can quickly respond to change without having to verify their decisions with external management. Staff also tend to prefer working for them as they often offer higher salaries and a better culture than the chains.

On the other hand, independent mid-market clubs have less access to capital than the chains, which can be a huge disadvantage. And if they’ve been around for a long time, they can become complacent – assuming everyone knows them and thinking there is no need to tell their story. Or they run into trouble because they don’t have a distinct brand personality or ethos.

Despite the advantages, the mid-market remains a shrinking sector because it’s vulnerable to competition from budget and premium clubs. Although independent mid-market clubs will continue to thrive, I believe that they are too small scale to create massive growth.

"An additional strength of the independents is their ability to be agile and quickly respond to change"

Sol Gilbert,

Co-owner,

Underground Gym

Sol Gilbert
Sol Gilbert

Our clubs have grown out of a combat school and both offer the same concept: combat training, strength and conditioning, and functional training in a very personal environment.

We positioned ourselves in the mid-market because we wanted to be as inclusive as possible. We’re in a price-sensitive location and we didn’t want to accidentally create the type of elitist facility that high prices can encourage. The day may start with CEOs arriving in their Rolls Royces, but we also have many students and other people who don’t have high levels of disposable income.

People like the variety we offer and the results we help them to achieve. Our focus is firmly on retention, not acquisition. In fact, we recently capped our membership and are running a waiting list, because we want to be able to properly service the needs of all of our members and get them to their goals.

Our experience shows that independents can use the opportunities the mid-market presents to set themselves apart from the club chains.

"We’re in a price-sensitive location and we didn’t want to accidentally create the type of elitist facility that high prices can encourage"

Underground Gym's concept grew from a combat school
Underground Gym's concept grew from a combat school
Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Existing data suggests that productivity is closely linked to employee health and wellbeing levels / Shutterstock.com
Existing data suggests that productivity is closely linked to employee health and wellbeing levels / Shutterstock.com
Aspects of sports and athletics can inspire ideas for workplace fitness / Shutterstock.com
Aspects of sports and athletics can inspire ideas for workplace fitness / Shutterstock.com
https://www.leisureopportunities.co.uk/images/HCM2018_2market.jpg
Are independent operators changing the face of the mid-market sector? We ask the experts...
Louise Wylie, The Club Glasgow: co-founder Rachelle Solan, Solan Fitness: co-owner Stephen Tharrett, ClubIntel: co-founder Sol Gilbert, Underground Gym: co-owner,Independent operators, personalised experience, Underground Gym, ClubIntel, Solan Fitness, The Club Glasgow
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features

Ask an expert: A new mid-market?

The low-cost sector has dominated the industry of late, but are new mid-market concepts set to transform the landscape? Kath Hudson asks the experts

By Kath Hudson | Published in Health Club Management 2018 issue 2

The booming budget fitness sector has resulted in clear market polarisation over recent years. Health club operators have increasingly chosen to align themselves with the low-cost or premium ends of the market, rather than sitting in the previously popular mid-market sector. It seems, however, that this space is being reinvigorated by entrepreneurial independent operators – operators that are keen to create an affordable and personalised experience for a potentially large audience of customers.

With concepts based on strength and conditioning, specialist sports advice, solid equipment and expert advice, but without a prohibitive price tag, these operators are proud to call themselves mid-market. They know and value each of their members and are focused on retention, rather than acquisition. And since they are independent operators, they’re setting up shop all over the country instead of targeting big cities only.

Does this trend signal that a shift in the current market make-up is on its way? We asked the industry experts.

Louise Wylie,

Co-founder,

The Club Glasgow

Louise Wylie
Louise Wylie

Surrounded by budget gyms in Glasgow city centre, we deliberately chose to create a mid-market offering that focused on affordability, good kit, a welcoming environment and excellent customer service. We wanted to create a community and make all our members feel they're valued.

There is definitely a gap in the mid-market and I think independent clubs are better placed to fill it than chains. We have full control over our decisions and we can respond to member requests immediately. We also have more freedom to interact in a more personable way on social media, which is really important at a local level. At The Club, we work with local businesses to offer cross-promotions, such as a pop-up barbers, which beds us into the community.

As well as looking after our members, we have the freedom to look after our staff well. We’re one of the few facilities in the area that pays staff for shifts and lets them keep 100 per cent of their PT earnings. Going forward, I think we will see more independent operators come into the mid-market, and a real demand for their service.

"There is definitely a gap in the mid-market and independent clubs are better placed to fill it than chains"

The Club, which boasts its own in-house DJ, focuses on offering quality equipment and good customer service at an affordable price point
The Club, which boasts its own in-house DJ, focuses on offering quality equipment and good customer service at an affordable price point

Rachelle Solan,

Co-owner,

Solan Fitness

Rachelle Solan
Rachelle Solan

Targeting the mid-market was intentional for Solan Fitness. We didn’t want to be budget and we couldn’t go high-end because we didn’t have a spa. Our core values are strength and functional training in a boutique environment, and a hands-on approach to our customers – at a mid-market price.

We experience a lot of demand at our two clubs: the mid-market is a massive space that no one is currently dominating. The budget clubs have helped create a new mid-market audience as they're excellent gyms for introducing people to fitness. However, people plateau after a while and begin to look for more expert advice and attention to achieve better results. It’s at this point that they're happy to invest in themselves and trade up to a mid-market club.

It’s not just former budget gym members that come to us. We also attract spa and racquet club users who no longer want to pay premium prices for facilities they don’t have time to use.

But it’s true that independents remain limited by their inability to scale up. They get stuck at two or three clubs that need the personality, passion and energy of the owner to thrive. This is why we’ve chosen to launch a Solan Fitness franchise. We’re systemising our approach and making cookie-cutters of ourselves, so lots of Solan Fitness clubs will all offer the same quality experience, but in a slightly different environment. We expect to have 15 clubs open by the end of 2018.

"Independents remain limited by their inability to scale up. They get stuck at two or three clubs that need the personality, passion and energy of the owner to thrive"

Strength and functional training are key offerings at Solan Fitness
Strength and functional training are key offerings at Solan Fitness

Stephen Tharrett,

Co-founder,

ClubIntel:

Stephen Tharrett
Stephen Tharrett

Independents have always dominated the mid-market in the US; the big players didn’t evolve until much later. While some marginal mid-market clubs were chewed up by the club chains, the established ones withstood the threat.

There are a lot of successful mid-market players with a handful of clubs in the US. Their qualities are similar to boutiques in that they’re local, tribal and build trust, but with the benefit of a lower price point.

An additional strength of the independents is their ability to be agile. Having no head office means they can quickly respond to change without having to verify their decisions with external management. Staff also tend to prefer working for them as they often offer higher salaries and a better culture than the chains.

On the other hand, independent mid-market clubs have less access to capital than the chains, which can be a huge disadvantage. And if they’ve been around for a long time, they can become complacent – assuming everyone knows them and thinking there is no need to tell their story. Or they run into trouble because they don’t have a distinct brand personality or ethos.

Despite the advantages, the mid-market remains a shrinking sector because it’s vulnerable to competition from budget and premium clubs. Although independent mid-market clubs will continue to thrive, I believe that they are too small scale to create massive growth.

"An additional strength of the independents is their ability to be agile and quickly respond to change"

Sol Gilbert,

Co-owner,

Underground Gym

Sol Gilbert
Sol Gilbert

Our clubs have grown out of a combat school and both offer the same concept: combat training, strength and conditioning, and functional training in a very personal environment.

We positioned ourselves in the mid-market because we wanted to be as inclusive as possible. We’re in a price-sensitive location and we didn’t want to accidentally create the type of elitist facility that high prices can encourage. The day may start with CEOs arriving in their Rolls Royces, but we also have many students and other people who don’t have high levels of disposable income.

People like the variety we offer and the results we help them to achieve. Our focus is firmly on retention, not acquisition. In fact, we recently capped our membership and are running a waiting list, because we want to be able to properly service the needs of all of our members and get them to their goals.

Our experience shows that independents can use the opportunities the mid-market presents to set themselves apart from the club chains.

"We’re in a price-sensitive location and we didn’t want to accidentally create the type of elitist facility that high prices can encourage"

Underground Gym's concept grew from a combat school
Underground Gym's concept grew from a combat school
Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Existing data suggests that productivity is closely linked to employee health and wellbeing levels / Shutterstock.com
Existing data suggests that productivity is closely linked to employee health and wellbeing levels / Shutterstock.com
Aspects of sports and athletics can inspire ideas for workplace fitness / Shutterstock.com
Aspects of sports and athletics can inspire ideas for workplace fitness / Shutterstock.com
https://www.leisureopportunities.co.uk/images/HCM2018_2market.jpg
Are independent operators changing the face of the mid-market sector? We ask the experts...
Louise Wylie, The Club Glasgow: co-founder Rachelle Solan, Solan Fitness: co-owner Stephen Tharrett, ClubIntel: co-founder Sol Gilbert, Underground Gym: co-owner,Independent operators, personalised experience, Underground Gym, ClubIntel, Solan Fitness, The Club Glasgow
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Strength training has moved from the margins to the mainstream.
Opinion: Building smarter strength spaces for today’s operators
Featured supplier news
Featured supplier news: Supporting long-term health: why whole body vibration belongs in clinical settings
As healthcare continues to shift towards prevention, there’s a growing focus on helping people stay active, independent and feeling good for longer.
Featured supplier news
Featured supplier news: W3Fit EMEA celebrates its fifth anniversary
Celebrating its milestone 5th anniversary, W3Fit EMEA returns in 2026 with an unmissable gathering of the Health & Fitness industry’s most influential leaders.
Company profiles
Company profile: Escape Fitness Ltd
Escape Fitness has driven fitness innovation for 20+ years. Founded by engineer Richard Januszek and ...
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Company profile: Active IQ
The UK’s leading Ofqual-recognised awarding organisation for the physical activity sector, Active IQ offers over ...
Supplier Showcases
Supplier Showcase - From nightclub to health club
Supplier Showcases
Supplier Showcase - Future-proofing
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
ukactive press release: Are they Fit for Office? UK Active and Technogym throw down the gauntlet to MPs
Hundreds of staff, MPs and Peers from across Westminster have signed up for the Fit for Office parliamentary physical activity challenge, which takes place throughout June and is hosted by ukactive and Technogym.
Featured press releases
Innerva press release: Lex Leisure’s power-assisted exercise suite smashes targets in record time
Crook Log Leisure Centre has more than doubled the membership target for its new power- assisted exercise suite in less than six months.
Directory
Hot tubs
MSpa International Ltd: Hot tubs
Industrial washing machines
Miele Company Limited: Industrial washing machines
Spa and beauty equipment
Oakworks Inc: Spa and beauty equipment
Lockers
Crown Sports Lockers: Lockers
Fitness tracking platform
SpiviTech: Fitness tracking platform
Water experiences and hydrotherapy solutions
Aquaform s.r.l.: Water experiences and hydrotherapy solutions
Property & Tenders
Stratford, East London.
Lee Valley Regional Park Authority
Property & Tenders
Y Felinheli, LL56 4QN
Newmark
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Diary dates
13-13 Jun 2026
Worldwide, Various,
Diary dates
21-24 Sep 2026
The Langham Huntington Pasadena , Pasadena, United States
Diary dates
06-08 Oct 2026
Messe Stuttgart, Stuttgart, Germany
Diary dates
22-22 Oct 2026
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Diary dates
26-29 Oct 2027
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