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Health Club Management

Health Club Management

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Health Club Management

Health Club Management

features

Retail: Retail revenue

Years ago, gym retail meant a small selection of basic products sold behind a counter. Now retail can turn more profit more than anywhere else in the gym, with opportunities in activewear, supplements and specialised gym equipment. We look at what’s working according to three industry experts

Published in Health Club Management 2019 issue 1
shutterstock
shutterstock
Location, location, location
Duncan Jefford

The wise adage is true: people buy with their eyes. However, in health club retail, buying incentive is more than visual interest alone. Allowing people to touch and feel the products creates a scenario in which they are much more likely to buy.

According to Everyone Active’s Duncan Jefford, when done well, retail can generate more profit per square meter than anywhere else in the gym.

“We generate more than £3m a year from retail,” says Jefford. “The key is to put it in the right place. Many operators put their retail section behind the reception, which is a huge loss. People need to be able to touch and feel the product to drive purchase.”

While he admits that the retail space at his centres can never compete with online retailers, positioning products in the right place can make a massive difference in terms of sales.

“We generate more than £3m a year from retail. The key thing is to put it in the right place” - Duncan Jefford, regional director, Everyone Active

Seems obvious, right? But Duncan says that concerns around theft often prevent a facility from moving their retail to the front of house. But reassuringly, he said that their stock loss is minimal – less than 2 per cent per year.

Another major sales driver is to have a range of quality products available.

“The vast majority of retail sales are for goggles and swimming costumes,” he says. “These are usually distress purchases, made on-site when a member has come for a workout and forgotten a critical piece of kit.

“However, one thing we’re noticing is that people are willing to pay a bit more for a quality product if there’s one available.”

Expanding the appeal of retail to include pop-up shops in partnership with new companies, especially athleisure brands, is also now proving to be a fruitful strategy.

These work well in a larger facility with a little more space. They’re not a permanent fixture, says Jefford, but they keep things fresh and interesting and have proven to give a great return.

No space for retailing?
Shamir Sidhu

What do you do if you don’t have retail space in your facility? London’s MoreYoga, one of the capital’s most affordable yoga studios, is proving that you can still have a lucrative retail offering even without owning the required floor space.

The company has been selling a range of Yogangster activewear through a mixture of partnership events, in-studio events and online.

More recently, MoreYoga showcased and sold an exclusive selection of Yogangster t-shirts and hoodies at the Om Yoga Show in London.

Highlighting their partnership with Yogangster founder Goldie, an internationally renowned DJ, artist and yoga enthusiast, MoreYoga was able to drive sales and brand awareness by capitalising on this modern yoga icon.

“Retail presents a huge opportunity for MoreYoga,” says Shamir Sidhu, MoreYoga founder. “We have 16 locations across London, but our lack of retail space isn’t stopping us from making the most of retail. We’re pushing ahead in more creative ways.”

“Lack of retail space isn’t stopping us from making the most of retail. We’re pushing ahead in more creative ways” - Shamir Sidhu, founder, MoreYoga

Shamir says that a retail strategy makes sense for all health and fitness clubs. The key is to decide on the scope of what you want to do, based on the capabilities of your facility.

If you can’t have a robust retail footprint, offer something meaningful by partnering with brands that align with your core values.

MoreYoga has partnered with Yogangster founder Goldie (left) to sell its range of apparel
The importance of merchandising
Adam Rai and Leon Judge

When people walk into a high street shop, they’re primed to buy. Not so in the gym environment. According to Adam Rai, co-founder of the GymPro fitness apparel brand, health club operators really need to work twice as hard to drive retail sales in a gym environment.

”People come to the gym with their head down and their headphones on. They’re not thinking about buying new kit,” says Rai. “For that reason, a bog-standard rail is not going to cut it. But when you attract the eye, it sells.”

GymPro sells a variety of hoodies and athletic apparel in 40 leisure centres across the UK.

Rai says operators need only to look at what large sports and fashion brands are doing from a merchandising perspective for inspiration in their own facilities.

"The theatre and energy around a retail space is something we’re really trying to hammer home to our operator partners," says Rai.

“The theatre and energy around a retail space is something we’re trying to hammer home to our operator partners” - Adam Rai, co-founder, GymPro

He adds that operators need to ensure they have passionate retail staff to drive sales.

"Retail staff need to believe in the products that they’re selling," says Rai. "When retail is done right, it can have a huge impact on sales."

GymPro sells a variety of athletic apparel in 40 leisure centres across the UK
http://www.leisureopportunities.com/images/imagesX/713283_158252.jpg
Operators share creative ways they’re tapping retail as a revenue source. More Yoga has partnered with musician Goldie to sell his Yogangster activewear.
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features

Retail: Retail revenue

Years ago, gym retail meant a small selection of basic products sold behind a counter. Now retail can turn more profit more than anywhere else in the gym, with opportunities in activewear, supplements and specialised gym equipment. We look at what’s working according to three industry experts

Published in Health Club Management 2019 issue 1
shutterstock
shutterstock
Location, location, location
Duncan Jefford

The wise adage is true: people buy with their eyes. However, in health club retail, buying incentive is more than visual interest alone. Allowing people to touch and feel the products creates a scenario in which they are much more likely to buy.

According to Everyone Active’s Duncan Jefford, when done well, retail can generate more profit per square meter than anywhere else in the gym.

“We generate more than £3m a year from retail,” says Jefford. “The key is to put it in the right place. Many operators put their retail section behind the reception, which is a huge loss. People need to be able to touch and feel the product to drive purchase.”

While he admits that the retail space at his centres can never compete with online retailers, positioning products in the right place can make a massive difference in terms of sales.

“We generate more than £3m a year from retail. The key thing is to put it in the right place” - Duncan Jefford, regional director, Everyone Active

Seems obvious, right? But Duncan says that concerns around theft often prevent a facility from moving their retail to the front of house. But reassuringly, he said that their stock loss is minimal – less than 2 per cent per year.

Another major sales driver is to have a range of quality products available.

“The vast majority of retail sales are for goggles and swimming costumes,” he says. “These are usually distress purchases, made on-site when a member has come for a workout and forgotten a critical piece of kit.

“However, one thing we’re noticing is that people are willing to pay a bit more for a quality product if there’s one available.”

Expanding the appeal of retail to include pop-up shops in partnership with new companies, especially athleisure brands, is also now proving to be a fruitful strategy.

These work well in a larger facility with a little more space. They’re not a permanent fixture, says Jefford, but they keep things fresh and interesting and have proven to give a great return.

No space for retailing?
Shamir Sidhu

What do you do if you don’t have retail space in your facility? London’s MoreYoga, one of the capital’s most affordable yoga studios, is proving that you can still have a lucrative retail offering even without owning the required floor space.

The company has been selling a range of Yogangster activewear through a mixture of partnership events, in-studio events and online.

More recently, MoreYoga showcased and sold an exclusive selection of Yogangster t-shirts and hoodies at the Om Yoga Show in London.

Highlighting their partnership with Yogangster founder Goldie, an internationally renowned DJ, artist and yoga enthusiast, MoreYoga was able to drive sales and brand awareness by capitalising on this modern yoga icon.

“Retail presents a huge opportunity for MoreYoga,” says Shamir Sidhu, MoreYoga founder. “We have 16 locations across London, but our lack of retail space isn’t stopping us from making the most of retail. We’re pushing ahead in more creative ways.”

“Lack of retail space isn’t stopping us from making the most of retail. We’re pushing ahead in more creative ways” - Shamir Sidhu, founder, MoreYoga

Shamir says that a retail strategy makes sense for all health and fitness clubs. The key is to decide on the scope of what you want to do, based on the capabilities of your facility.

If you can’t have a robust retail footprint, offer something meaningful by partnering with brands that align with your core values.

MoreYoga has partnered with Yogangster founder Goldie (left) to sell its range of apparel
The importance of merchandising
Adam Rai and Leon Judge

When people walk into a high street shop, they’re primed to buy. Not so in the gym environment. According to Adam Rai, co-founder of the GymPro fitness apparel brand, health club operators really need to work twice as hard to drive retail sales in a gym environment.

”People come to the gym with their head down and their headphones on. They’re not thinking about buying new kit,” says Rai. “For that reason, a bog-standard rail is not going to cut it. But when you attract the eye, it sells.”

GymPro sells a variety of hoodies and athletic apparel in 40 leisure centres across the UK.

Rai says operators need only to look at what large sports and fashion brands are doing from a merchandising perspective for inspiration in their own facilities.

"The theatre and energy around a retail space is something we’re really trying to hammer home to our operator partners," says Rai.

“The theatre and energy around a retail space is something we’re trying to hammer home to our operator partners” - Adam Rai, co-founder, GymPro

He adds that operators need to ensure they have passionate retail staff to drive sales.

"Retail staff need to believe in the products that they’re selling," says Rai. "When retail is done right, it can have a huge impact on sales."

GymPro sells a variety of athletic apparel in 40 leisure centres across the UK
http://www.leisureopportunities.com/images/imagesX/713283_158252.jpg
Operators share creative ways they’re tapping retail as a revenue source. More Yoga has partnered with musician Goldie to sell his Yogangster activewear.
Latest News
The Singapore government is creating a "comprehensive digital health platform" based on the use of ...
Latest News
Enhanced designs have been submitted for a £42m swimming pool and waterpark complex in Derby. ...
Latest News
Arvinda Gohil has been appointed CEO of Central YMCA. Gohil joins the health and wellbeing ...
Latest News
Health and social care secretary Matt Hancock has launched a review into the NHS Health ...
Latest News
ukactive has begun a search for two additional members to join its board of directors. ...
Latest News
Boutique fitness franchise Spenga has opened two new locations as it looks to ramp up ...
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Fitness franchise Fit Body Boot Camp has revealed that it has more than 200 new ...
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Featured supplier news
Featured supplier: Pavigym: helping gyms and boutique studios fight back against noise
With noise complaints against gyms on the rise, limiting noise isn’t only beneficial to users - it could also be crucial to your business.
Featured supplier news
Featured supplier: Trade in, trade up with Power Plate
To celebrate their 20th Anniversary Power Plate is pleased to launch its new trade in, trade up programme.
Opinion
promotion
As an industry, we still underestimate the power of a truly varied fitness regime - and the growing appetite for it, especially among emerging customer segments.
Opinion: Collaboration vs aggregation - what’s the difference?
Video Gallery
Harlands Group testimonial
Harlands Group
Harlands Group - Testimonial from 'The Hampton Health & Fitness Club'. Read more
More videos:
Company profiles
Company profile: Xn Leisure Systems Ltd
Xn Leisure is a provider of cutting-edge health and fitness software, offering an exceptional service ...
Company profiles
Company profile: Merrithew™ - Leaders in Mindful Movement™
Merrithew™ enriches the lives of others with responsible exercise modalities and innovative, multidisciplinary fitness offerings ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Management software
Fisikal: Management software
Exercise equipment
Matrix Fitness: Exercise equipment
Professional services
Deloitte UK: Professional services
Flooring
Total Vibration Solutions Ltd: Flooring
Architects/designers
Zynk Design Consultants: Architects/designers
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Trade associations
International SPA Association - iSPA: Trade associations
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Lockers/interior design
Craftsman Quality Lockers Ltd: Lockers/interior design
Spa software
SpaBooker: Spa software
Property & Tenders
Diary dates
05-06 Sep 2019
TagusPark, Oeiras, Portugal
Diary dates
21-22 Sep 2019
Locations worldwide,
Diary dates
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