GET HCM
magazine
Sign up for the FREE digital edition of HCM magazine and also get the HCM ezine and breaking news email alerts.
Not right now, thanksclose this window
HID Global
HID Global
HID Global
Health Club Management

Health Club Management

Follow Health Club Management on Twitter Like Health Club Management on Facebook Join the discussion with Health Club Management on LinkedIn Follow Health Club Management on Instagram
UNITING THE WORLD OF FITNESS
Get the latest news, jobs and features in your inbox
Health Club Management

Health Club Management

News

Gym Group and PwC report shows number of low-cost gyms could double by 2026

Independent research confirms that the low cost market can at least double its number of sites, supporting our ambition for future organic growth, alongside the maturing of our current estate.
– Richard Darwin

The Gym Group has tackled investor chatter about stagnation in market penetration by collaborating with PricewaterhouseCoopers (PWC) to release an independent report showing the number of low-cost gyms could double by 2026 to between 1200 and 1400 locations.

The report, 'UK Low Cost Gyms – Market headroom forecasts increased', which was released yesterday in advance of The Gym Group’s full-year results today, dispels concerns that penetration rates are stuck at 14 per cent.

Speaking to HCM, Gym Group CEO, Richard Darwin said: “Independent research confirms that the low-cost market can at least double its number of sites, supporting our ambition for future organic growth, alongside the maturing of our current estate.”

In reporting its annual results, The Gym Group – which bought portfolios of clubs from both Lifestyle and EasyGym in 2017/18 – said it achieved revenues of £123.9m on the combined estate for 2018, a 35.6 per cent increase on the £91.4m recorded in 2017.

Statutory profit before tax was £10m against £9.2m in 2017, giving dividends of £1.30 per share, against £1.20 per share in 2017.

Darwin said the company will continue to upgrade its acquired sites through 2019 and told HCM that once converted to the Gym Group model, the locations are yielding 20 per cent more revenue.

He attributed this significant improvement to 24/7 opening, ‘extra stimulus’ in the form of reduced prices and more powerful marketing – The Gym Group embarked on its first consumer TV advertising campaign earlier this year and is pursuing a ‘balanced media plan’ using social media, digital and TV.

While growth continues in the newer locations, return on capital invested (ROCE) on mature sites remained steady at 31 per cent in 2018, against 32 per cent in 2017.

The company signalled its intention to open a test site for a new small box concept in 2019 and although a location has not yet been revealed, Darwin said the format would be designed to fit a 5,000-8,000sq ft footprint.

He told HCM the new concept will enable The Gym Group to trade in smaller market towns and locations with reduced catchment areas. A rollout will follow once the concept has been proven.

The announcement reflects the direction being taken by Gym Group rival Pure Gym, which announced a small box concept recently, as industry operators continue to pivot their business models in the battle for locations and market share.

Darwin told HCM 2019 has started well for The Gym Group, saying: “We’ve had a successful start to the year and our brand now serves over 800,000 members, with 10 million visits already recorded this year. We plan to open 15-20 gyms in 2019 as we extend access to affordable fitness nationwide.”

On the employee front, he reported that the company’s new-style PT contracts were trialled in 2018 at 24 sites and will be rolled out through 2019 now back-office systems and processes have been fine-tuned to support them, saying: “We aim to be market-leading in terms of our employment proposition, and we expect the new contracts to be rolled out to the entire estate by the end of the year.”

FOOTNOTES

For more details on the Gym Group employment options and vacancies, click here.

Download the PwC report here.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
The Gym Group has tackled investor chatter about stagnation in market penetration by collaborating with PricewaterhouseCoopers (PWC) to release an independent report showing the number of low-cost gyms could double by 2026 to between 1200 and 1400 locations.
HAF,INV,OPB,CON
imagesX/THUMB341199_601749_424932.jpg
Latest News
Fitness instructors, personal trainers, coaches and other self-employed physical activity workers in Wales are being ...
Latest News
HCM editor, Liz Terry, has launched a Parliamentary Petition calling for gyms to be in ...
Latest News
The failure to tackle the UK's obesity crisis is down to successive governments being guilty ...
Latest News
Les Mills has launched a new digital content solution to support health and fitness operators ...
Latest News
Gymbox has entered the hospitality space with the signing of a deal to deliver in-room ...
Latest News
Nuffield Health has launched a series of free, online classes focused on emotional wellbeing. The ...
Latest News
Resistance training is just as beneficial for men and women over the age of 50, ...
Latest News
Fitness, sport and leisure sector professionals who have continued to deliver services to their communities ...
HCM Magazine
Sponsored
Technogym introduced live and on-demand functionality to Mywellness in July. Here we find out more about operators who have adopted this solution
HCM Magazine
Research
Regular sessions of new-generation yoga can help tackle the lockdown blues, increase sleep quality and boost mental health
HCM Magazine
Butt, bottom, booty, bum – whatever you call it, working the backside is a vital part of the balance, power and wellbeing equation and has been ignored for too long, as Tom Tawell reports
HCM Magazine
HCM People
Our road map is to manage leisure facilities, developing them into community hubs and ensuring the most in need get the most support
HCM Magazine
Active ageing
With many older people in crisis due to the pandemic, ukactive’s head of health and wellbeing development, Kenny Butler, explains why the organisation is launching an active ageing consultation and how you can get involved
HCM Magazine
Sponsored
Deansgate Square, the newest residential star on Manchester’s impressive skyline, is a fitting home for some of the city’s most stylish health and fitness facilities, with specialist acoustic flooring by TVS Group
HCM Magazine
Research
New research from the Karolinska Institutet in Sweden, has established why people who exercise when suffering from cancer generally have better outcomes
HCM Magazine
HCM magazine
Nu Physio and Fitness has placed Egym at the heart of its protection and prevention model
HCM magazine
How Virtuagym and Thebodycontent created an ecosystem of fitness within a small community
HCM magazine
This was a year when research helped transformed the gym sector into a serious political force. Two pieces of work stand out in terms of timely impact
FREE WEBINAR
promotion
This free webinar on 26 January will see our panellists reflect on the changes to work in 2020, and their priorities for 2021.
Opinion: 2021 is the year to prioritise global culture
Featured supplier news
Featured supplier: AskNicely helps empower businesses to improve customer experience and boost NPS
Maintaining a consistent member experience across a growing health and fitness brand can prove challenging.
Featured supplier news
Featured supplier: Forget the ‘Netflix effect’ – it’s all about the ‘iFit effect’ to boost member retention
Addiction – a word laden with negativity. But isn’t that exactly what the fitness industry wants? For members to be addicted (in a healthy way) to exercise – not just to increase profits but, most importantly, so they can live happier, healthier and longer lives.
Company profiles
Company profile: Crown Sports Lockers
Crown Sports Lockers has designed, crafted and fitted bespoke timber furniture for spas, hotels and ...
Company profiles
Company profile: MoveGB
Move is the fitness marketplace connecting our partners with customers through the largest variety of ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Fitness Software
FunXtion International BV: Fitness Software
Management software
Premier Software Solutions: Management software
Flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Flooring
Skincare
Sothys: Skincare
Spa software
SpaBooker: Spa software
Wearable technology solutions
MyZone: Wearable technology solutions
Red Light Therapy
 Red Light Rising: Red Light Therapy
Uniforms
Service Sport: Uniforms
Software
Volution.fit: Software
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
02-04 Feb 2021
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates

News

Gym Group and PwC report shows number of low-cost gyms could double by 2026

Independent research confirms that the low cost market can at least double its number of sites, supporting our ambition for future organic growth, alongside the maturing of our current estate.
– Richard Darwin

The Gym Group has tackled investor chatter about stagnation in market penetration by collaborating with PricewaterhouseCoopers (PWC) to release an independent report showing the number of low-cost gyms could double by 2026 to between 1200 and 1400 locations.

The report, 'UK Low Cost Gyms – Market headroom forecasts increased', which was released yesterday in advance of The Gym Group’s full-year results today, dispels concerns that penetration rates are stuck at 14 per cent.

Speaking to HCM, Gym Group CEO, Richard Darwin said: “Independent research confirms that the low-cost market can at least double its number of sites, supporting our ambition for future organic growth, alongside the maturing of our current estate.”

In reporting its annual results, The Gym Group – which bought portfolios of clubs from both Lifestyle and EasyGym in 2017/18 – said it achieved revenues of £123.9m on the combined estate for 2018, a 35.6 per cent increase on the £91.4m recorded in 2017.

Statutory profit before tax was £10m against £9.2m in 2017, giving dividends of £1.30 per share, against £1.20 per share in 2017.

Darwin said the company will continue to upgrade its acquired sites through 2019 and told HCM that once converted to the Gym Group model, the locations are yielding 20 per cent more revenue.

He attributed this significant improvement to 24/7 opening, ‘extra stimulus’ in the form of reduced prices and more powerful marketing – The Gym Group embarked on its first consumer TV advertising campaign earlier this year and is pursuing a ‘balanced media plan’ using social media, digital and TV.

While growth continues in the newer locations, return on capital invested (ROCE) on mature sites remained steady at 31 per cent in 2018, against 32 per cent in 2017.

The company signalled its intention to open a test site for a new small box concept in 2019 and although a location has not yet been revealed, Darwin said the format would be designed to fit a 5,000-8,000sq ft footprint.

He told HCM the new concept will enable The Gym Group to trade in smaller market towns and locations with reduced catchment areas. A rollout will follow once the concept has been proven.

The announcement reflects the direction being taken by Gym Group rival Pure Gym, which announced a small box concept recently, as industry operators continue to pivot their business models in the battle for locations and market share.

Darwin told HCM 2019 has started well for The Gym Group, saying: “We’ve had a successful start to the year and our brand now serves over 800,000 members, with 10 million visits already recorded this year. We plan to open 15-20 gyms in 2019 as we extend access to affordable fitness nationwide.”

On the employee front, he reported that the company’s new-style PT contracts were trialled in 2018 at 24 sites and will be rolled out through 2019 now back-office systems and processes have been fine-tuned to support them, saying: “We aim to be market-leading in terms of our employment proposition, and we expect the new contracts to be rolled out to the entire estate by the end of the year.”

FOOTNOTES

For more details on the Gym Group employment options and vacancies, click here.

Download the PwC report here.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
The Gym Group has tackled investor chatter about stagnation in market penetration by collaborating with PricewaterhouseCoopers (PWC) to release an independent report showing the number of low-cost gyms could double by 2026 to between 1200 and 1400 locations.
HAF,INV,OPB,CON
imagesX/THUMB341199_601749_424932.jpg

News

Fitness instructors, personal trainers, coaches and other self-employed physical activity workers in Wales are being
HCM editor, Liz Terry, has launched a Parliamentary Petition calling for gyms to be in
The failure to tackle the UK's obesity crisis is down to successive governments being guilty
Les Mills has launched a new digital content solution to support health and fitness operators
Gymbox has entered the hospitality space with the signing of a deal to deliver in-room
Nuffield Health has launched a series of free, online classes focused on emotional wellbeing. The
Volution.fit
Volution.fit
Pulse Fitness has recently completed a refurbishment of the fitness facilities at iGym London. Using
Resistance training is just as beneficial for men and women over the age of 50,
Fitness, sport and leisure sector professionals who have continued to deliver services to their communities
A national survey has launched to chart the mental health of the fitness and physical
One of England's highest ranking police officers has called on government ministers to clearly define
Virtuagym, a leading provider of fitness technology for gyms and trainers, has announced the launch
Fitness First has launched a new free digital fitness hub, offering users a wide range
Miha Bodytec GmbH
Miha Bodytec GmbH
Red light therapy equipment supplier, Red Light Rising has partnered with Aidan Robinson of ITRM
The Gym Group has brought in Rio Ferdinand and Wais Shaifta as non-executive directors, signalling
As the global vaccine rollout brings reopening closer and heralds the end of lockdowns, jostling
Less than half (44.9 per cent) of children and young people in England met the
An England-wide survey of over 5,000 adults found that 80 per cent of people aged
The government needs to provide the fitness and physical activity sector with a plan which
Book4Time, a leading cloud-based business management solution for the global hospitality, spa and wellness industry,
MyZone Group Ltd
MyZone Group Ltd
Maintaining a consistent member experience across a growing health and fitness brand can prove challenging.
Some Brits drop their exercise habits, eat unhealthily and drink more alcohol during lockdowns, according
New year, new celeb workout as Mark ‘Bez’ Berry announces the launch of his own
fibodo Limited
fibodo Limited
1 - 20 of 11,754
HCM Magazine
Sponsored
Technogym introduced live and on-demand functionality to Mywellness in July. Here we find out more about operators who have adopted this solution
HCM Magazine
Research
Regular sessions of new-generation yoga can help tackle the lockdown blues, increase sleep quality and boost mental health
HCM Magazine
Butt, bottom, booty, bum – whatever you call it, working the backside is a vital part of the balance, power and wellbeing equation and has been ignored for too long, as Tom Tawell reports
HCM Magazine
HCM People
Our road map is to manage leisure facilities, developing them into community hubs and ensuring the most in need get the most support
HCM Magazine
Active ageing
With many older people in crisis due to the pandemic, ukactive’s head of health and wellbeing development, Kenny Butler, explains why the organisation is launching an active ageing consultation and how you can get involved
HCM Magazine
Sponsored
Deansgate Square, the newest residential star on Manchester’s impressive skyline, is a fitting home for some of the city’s most stylish health and fitness facilities, with specialist acoustic flooring by TVS Group
HCM Magazine
Research
New research from the Karolinska Institutet in Sweden, has established why people who exercise when suffering from cancer generally have better outcomes
HCM Magazine
HCM magazine
Nu Physio and Fitness has placed Egym at the heart of its protection and prevention model
HCM magazine
How Virtuagym and Thebodycontent created an ecosystem of fitness within a small community
HCM magazine
This was a year when research helped transformed the gym sector into a serious political force. Two pieces of work stand out in terms of timely impact
HCM magazine
We’ve stepped off the path this month to bring you a special 2020 review edition of HCM and to propose emerging priorities going forward, as we gird our loins to tackle 2021
HCM magazine
High quality user experience and good value for the operator. This is the winning formula behind an expanding Physical Company product range, says James Anderson
HCM magazine
HCM talks to policy makers, operators and decision-makers about the public sector and trust response to the pandemic
HCM magazine
Longer-term, we’re open to doing another IPO and taking our smart clubs overseas, or to doing another private equity deal, but for now, the focus is on building the company
HCM magazine
The science shows being fit mitigates against COVID-19. We’ve proven we can operate safely under the SAGE COVID-secure Framework. Time to join it up by securing essential service status
HCM magazine
BMF members were invited to continue paying during first lockdown and an incredible 83 per cent did so, with some paying double to cover others
HCM magazine
FREE WEBINAR
promotion
This free webinar on 26 January will see our panellists reflect on the changes to work in 2020, and their priorities for 2021.
Opinion: 2021 is the year to prioritise global culture
Featured supplier news
Featured supplier: AskNicely helps empower businesses to improve customer experience and boost NPS
Maintaining a consistent member experience across a growing health and fitness brand can prove challenging.
Featured supplier news
Featured supplier: Forget the ‘Netflix effect’ – it’s all about the ‘iFit effect’ to boost member retention
Addiction – a word laden with negativity. But isn’t that exactly what the fitness industry wants? For members to be addicted (in a healthy way) to exercise – not just to increase profits but, most importantly, so they can live happier, healthier and longer lives.
Company profiles
Company profile: Crown Sports Lockers
Crown Sports Lockers has designed, crafted and fitted bespoke timber furniture for spas, hotels and ...
Company profiles
Company profile: MoveGB
Move is the fitness marketplace connecting our partners with customers through the largest variety of ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Fitness Software
FunXtion International BV: Fitness Software
Management software
Premier Software Solutions: Management software
Flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Flooring
Skincare
Sothys: Skincare
Spa software
SpaBooker: Spa software
Wearable technology solutions
MyZone: Wearable technology solutions
Red Light Therapy
 Red Light Rising: Red Light Therapy
Uniforms
Service Sport: Uniforms
Software
Volution.fit: Software
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
02-04 Feb 2021
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
Search news, features & products:
Find a supplier:
HID Global
HID Global