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UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

features

Editor's letter: Mega players

Having a portfolio of more than 1,000 health club locations is the aim of ambitious operators, with this elite category growing fast, creating new dynamics in the market

Published in Health Club Management 2022 issue 4
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
At this scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to members

As the industry grows and more operators achieve global ‘mega player’ status – deemed to be in excess of 1,000 locations – the saturation of the market is increasing and we’re entering a new phase of accelerating aggregation and churn.

At the moment, the biggest players include companies such as Planet Fitness with 2,291 locations, Basic-Fit with 1,097, RSG with 1,000, Xponential with 2,100, Anytime Fitness with more than 5,000, Snap Fitness with 2,000 and F45 with 1,750.

At this kind of scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to customers and offering cross-portfolio access, such as that afforded by Xponential’s recently-launched X-Pass.

This ‘all locations’ offering is for customers who want to use locations from across the company’s entire estate – which currently has 10 brands covering everything from rowing, yoga, lifting, running and cycling to barre, stretching, boxing and Pilates.

By operating across so many wellness sectors, Xponential is able to keep its members within its own universe for most if not all of their fitness needs, through the X-Pass programme.

In addition to enabling brands to effectively aggregate their own estates – instead of using an external service, such as Classpass – this kind of scale also enables them to create operating clusters to drive economies of scale and improve market visibility, staff training and career opportunities.

As mega players emerge there’s also an accelerating churn in relation to real estate, as market forces determine which brands thrive best in which locations. A steady stream of sites is now changing hands as operators work to optimise locations.

We’re seeing deals whereby one brand is taking over locations previously run by another and they’re thriving under new ownership where they’d previously failed.

In our interview on page 34, industry veteran, Dave Courteen addresses this issue, saying: “Operators must be very clear in their messaging, so people find their way to a club they’re likely to stick with – be clear in who you’re targeting – try not to be all things to all people. Provided we’re clear in our messaging, I believe we can be successful at keeping people engaged with our clubs.”

The final piece of this jigsaw puzzle is input from entrepreneurs who are building businesses to sell to mega player brands. We’re seeing start-ups aligning new health clubs with the systems and processes that will enable them to achieve a profitable exit by selling out to a specific operator as investment continues to flow into the sector.

Liz Terry, HCM editor
[email protected]
@elizterry
https://www.leisureopportunities.co.uk/images/2022/588080_791660.jpg
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Click on a catalogue to view it online
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Fitness equipment
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Architects/designers
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Diary dates
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Diary dates
21-21 Sep 2022
Various, London, United Kingdom
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25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
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features

Editor's letter: Mega players

Having a portfolio of more than 1,000 health club locations is the aim of ambitious operators, with this elite category growing fast, creating new dynamics in the market

Published in Health Club Management 2022 issue 4
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
At this scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to members

As the industry grows and more operators achieve global ‘mega player’ status – deemed to be in excess of 1,000 locations – the saturation of the market is increasing and we’re entering a new phase of accelerating aggregation and churn.

At the moment, the biggest players include companies such as Planet Fitness with 2,291 locations, Basic-Fit with 1,097, RSG with 1,000, Xponential with 2,100, Anytime Fitness with more than 5,000, Snap Fitness with 2,000 and F45 with 1,750.

At this kind of scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to customers and offering cross-portfolio access, such as that afforded by Xponential’s recently-launched X-Pass.

This ‘all locations’ offering is for customers who want to use locations from across the company’s entire estate – which currently has 10 brands covering everything from rowing, yoga, lifting, running and cycling to barre, stretching, boxing and Pilates.

By operating across so many wellness sectors, Xponential is able to keep its members within its own universe for most if not all of their fitness needs, through the X-Pass programme.

In addition to enabling brands to effectively aggregate their own estates – instead of using an external service, such as Classpass – this kind of scale also enables them to create operating clusters to drive economies of scale and improve market visibility, staff training and career opportunities.

As mega players emerge there’s also an accelerating churn in relation to real estate, as market forces determine which brands thrive best in which locations. A steady stream of sites is now changing hands as operators work to optimise locations.

We’re seeing deals whereby one brand is taking over locations previously run by another and they’re thriving under new ownership where they’d previously failed.

In our interview on page 34, industry veteran, Dave Courteen addresses this issue, saying: “Operators must be very clear in their messaging, so people find their way to a club they’re likely to stick with – be clear in who you’re targeting – try not to be all things to all people. Provided we’re clear in our messaging, I believe we can be successful at keeping people engaged with our clubs.”

The final piece of this jigsaw puzzle is input from entrepreneurs who are building businesses to sell to mega player brands. We’re seeing start-ups aligning new health clubs with the systems and processes that will enable them to achieve a profitable exit by selling out to a specific operator as investment continues to flow into the sector.

Liz Terry, HCM editor
[email protected]
@elizterry
https://www.leisureopportunities.co.uk/images/2022/588080_791660.jpg
Can one operator succeed where another has failed? asks Liz Terry
Latest News
Easton Leisure Centre in the UK has announced a 100 per cent reduction in heating ...
Latest News
The Gym Group saw its membership grow by 10 per cent during the first six ...
Latest News
Mindbody has announced that Fritz Lanman will become the company’s new CEO from 3 September ...
Latest News
Parkour Generations has joined forces with Gymbox to bring parkour into the UK’s mainstream fitness ...
Latest News
Amazon has acquired primary healthcare organisation One Medical in a US$3.9bn deal that will see ...
Latest News
Nearly half (47 per cent) of men employed by fitness companies work in leadership roles ...
Latest News
Scandinavian fitness chain SATS has reported Q2 results showing a 53 per cent increase in ...
Latest News
The World Active Forum (WAF) – a new network of national fitness associations and organisations ...
Latest News
Mark Wahlberg- and David Beckham-backed F45 Training has announced a reduction in its core workforce ...
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Total Fitness says its membership numbers are back to pre-COVID-19 levels. With fifteen clubs in ...
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Featured supplier news
Featured supplier news: EGYM announces integration with software provider Fisikal
EGYM has announced an integration with a leading UK-based software company Fisikal to enhance its capabilities to serve the needs of enterprise customers running multi-site operations.
Featured supplier news
Featured supplier news: Parkwood Leisure celebrates milestone of teaching 100,000 children to swim
Parkwood Leisure, one of the UK’s leading leisure operators, has reached the milestone of teaching 100,000 children to swim through its Learn To Swim Programme.
Featured operator news
Featured operator news: Parkwood Leisure celebrates four award wins and named Outstanding Organisation of the Year at the 2022 ukactive Awards
It was a night to remember at the 2022 ukactive Awards for Parkwood Leisure, as the leisure facilities operator picked up four awards.
Featured operator news
Featured operator news: New £42m Moorways Sports Village to open on 21 May
Everyone Active will open Moorways Sports Village to the public on Saturday 21 May with a grand opening weekend – in time for the half term holidays.
Video Gallery
Mindbody, Inc
Sport Alliance GmbH
Total Vibration Solutions / Floors 4 Gyms / TVS Sports Surfaces
Company profiles
Company profile: Everyone Active
Everyone Active operates leisure centres in partnership with local councils across the UK. Today, Everyone ...
Company profiles
Company profile: Trainerize
Trainerize is the fitness club software making fitness accessible by empowering fitness businesses worldwide to ...
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Featured press releases: Parkwood Leisure Appoints New Strategic Director
Parkwood Leisure is delighted to announce that Andy Farr will be re-joining the business as Strategic Director from September 2022.
Featured press releases
Featured press releases: Power Plate® announce official partnership with Alpine Academy
Power Plate, the global leader in whole body vibration technology is proud to support Alpine Academy with targeted vibration products to help enhance drivers’ performance and recovery.
Directory
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Skincare
Sothys: Skincare
On demand
Fitness On Demand: On demand
Salt therapy products
Himalayan Source: Salt therapy products
Fitness equipment
A Panatta Sport Srl: Fitness equipment
Architects/designers
Zynk Design Consultants: Architects/designers
Management software
Premier Software Solutions: Management software
Spa software
SpaBooker: Spa software
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
12-13 Sep 2022
Wyndham Lake Buena Vista Disney Springs® Resort, Lake Buena Vista, United States
Diary dates
21-21 Sep 2022
Various, London, United Kingdom
Diary dates
25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
17-18 Mar 2023
Tobacco Dock, London, United Kingdom
Diary dates
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