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Hedgehog Concept Ltd
Hedgehog Concept Ltd
Hedgehog Concept Ltd
Health Club Management

Health Club Management

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UNITING THE WORLD OF FITNESS
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Health Club Management

Health Club Management

News

IHRSA 2014: Health clubs under threat from march of microgyms, says Ray Algar

Traditional health clubs offering a broad selection of activities at a mid-range price are at serious risk of having their business ‘salami-sliced’ away by specialised competitors.

That was the view of respected industry analyst Ray Algar during his address at the IHRSA Europe Congress in Amsterdam yesterday afternoon (17 October).

He said activity providers must decide whether they wish to pursue the path of low-cost self-service gyms, which have been a big success story in recent years, or go-down the path of offering a high-quality support structure for their clients - as found in the new wave of microgyms - if they are to thrive in a changing marketplace.

The mid-market gyms charging an average of £42 a month in the UK may find that small chunks of their members will be lost to low-cost competitors and microgyms specialising in the activities they most prefer - such as yoga, functional training or group cycling - until the business is no longer viable, Algar added. Approximately 120 private gyms are closing in the UK every year as their business model becomes no longer feasible, he lamented.

The new price points which are forming, Algar said, are approximately £16 per month maximum for a low-cost operator (slightly more in London), while microgyms are able to charge between £20-30 per hour session for the unique experience that they offer. He stated that the talented trainers are a key part of the high price point for microgyms, describing them as ‘rockstars’ who are vital to building loyal communities around new aspirational brands, such as Psycle and Soul Cycle, in a way mid-market gyms haven’t managed.

He highlighted this by citing a quote from Fitness First CEO Andrew Cosslett, who on joining the company from the hospitality industry noted: “The gym industry might be great at fitness, but it has never been very good at connecting with customers.”

In response to these new competitors, traditional mid market giants such as Fitness First and David Lloyd are piloting their own microgym brands, while some industry observers believe that embedding these boutique concepts within existing health clubs could preserve their status as the traditional centre of active lifestyles.

Algar pointed out that, as with the initial wave of microgyms, many of the entrepreneurs behind boutique clubs are arriving from outside the health and fitness industry, bringing new ways of thinking. Whichever path traditional gyms choose to take, he concluded, they will need to be clear in their approach and embrace innovation if they are to succeed.

The focus on the emergence of microgyms served as an apt precursor to Algar’s forthcoming report on the sector - which is expected to be released in December.

Health Club Management will be in attendance for the duration of the event and (WiFi permitting) will be live reporting on key developments via the HCM website.

A preview of the event can be found in the September edition of HCM magazine on pp.26-27.

Traditional health clubs offering a broad selection of activities at a mid-range price are at serious risk of having their business ‘salami-sliced’ away by specialised competitors.
HAF,FIT,IND,EVT,PHR
934328_953695.jpg
Latest News
Glasgow Life, which runs leisure and culture facilities on behalf of Glasgow City Council, has ...
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Technogym has announced the launch of live streaming and on-demand classes. The new content will ...
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A number of gym operators are concerned that local lockdowns could come into effect in ...
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Prime Minister Boris Johnson has announced that gyms may be able to reopen in a ...
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Features
Training
Balance training is set to become a major fitness trend, with exercisers increasingly appreciating the benefits of having a strong core and good balance, particularly as they age. Lauren Health-Jones rounds up the latest product releases
Features
Reopening
David Lloyd Leisure has launched a raft of outdoor classes, including an enhanced role for its Battlebox concept, as Liz Terry reports
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feature
As the health and fitness industry gears up for reopening, Caroline Constantine, MD of Right Directions, shares critical guidance about safe operating procedures
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Talking Point
The fitness industry has shown incredible flexibility during lockdown, pivoting to digital to keep people active. But as lockdowns end, we ask what impact the pandemic will have on facility provision
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Partner briefing
BMF, the outdoor fitness franchise company co-owned by Bear Grylls, is launching a £1m initiative designed to offer financial support to PTs and exercise professionals in getting back to work after the lockdown
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Statistics
More than 65,000 people responded to a survey designed to gauge what members want and expect from the sector after lockdown, as Leisure-net’s Dave Monkhouse reports
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Supplier showcase
Working with Precor, Aberdeen Sports Village has undergone a £500k overhaul to strengthen the user experience and put digital connectivity at the core of its offering
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People
HCM people

Ben Lucas

Founder, Flow Athletic, Sydney
We advise our Flow Athletes to complete classes at a ratio of one yoga class to one strength class to one cardio class. This combination has very positive effects
People
I want us to make sure we’re still the go-to sector with the greatest power to improve health and wellbeing in society. We absolutely must not abdicate that opportunity
People
HCM people

Aaron Smith

Founder, KX Pilates
‘KX’ stands for ‘the Kaizen Experience’, which means ‘change for the better’ in Japanese. It’s a philosophy that focuses on continuous improvement. We’re always seeking to improve, not only as a company but as individuals
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Catalogue Gallery
Click on a catalogue to view it online
Directory
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Spa software
SpaBooker: Spa software
Wearable technology solutions
MyZone: Wearable technology solutions
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Exercise equipment
Matrix Fitness: Exercise equipment
Fitness software
Go Do.Fitness: Fitness software
Lockers/interior design
Fitlockers: Lockers/interior design
Gym flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Gym flooring
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Trade associations
International SPA Association - iSPA: Trade associations
Property & Tenders
Greywell, Hampshire
Barnsgrove Health and Wellness Club
Property & Tenders
Derby City Council
Property & Tenders
Diary dates
21-24 Sep 2020
Loews Coronado Bay Resort, Coronado, United States
Diary dates
22-23 Sep 2020
Heythrop Park, United Kingdom
Diary dates
17-23 Oct 2020
Pinggu, Beijing, China
Diary dates
27-30 Oct 2020
Messe Stuttgart, Germany
Diary dates
03-06 Nov 2020
Online,
Diary dates
27-28 Nov 2020
Athena, Leicester, 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

News

IHRSA 2014: Health clubs under threat from march of microgyms, says Ray Algar

Traditional health clubs offering a broad selection of activities at a mid-range price are at serious risk of having their business ‘salami-sliced’ away by specialised competitors.

That was the view of respected industry analyst Ray Algar during his address at the IHRSA Europe Congress in Amsterdam yesterday afternoon (17 October).

He said activity providers must decide whether they wish to pursue the path of low-cost self-service gyms, which have been a big success story in recent years, or go-down the path of offering a high-quality support structure for their clients - as found in the new wave of microgyms - if they are to thrive in a changing marketplace.

The mid-market gyms charging an average of £42 a month in the UK may find that small chunks of their members will be lost to low-cost competitors and microgyms specialising in the activities they most prefer - such as yoga, functional training or group cycling - until the business is no longer viable, Algar added. Approximately 120 private gyms are closing in the UK every year as their business model becomes no longer feasible, he lamented.

The new price points which are forming, Algar said, are approximately £16 per month maximum for a low-cost operator (slightly more in London), while microgyms are able to charge between £20-30 per hour session for the unique experience that they offer. He stated that the talented trainers are a key part of the high price point for microgyms, describing them as ‘rockstars’ who are vital to building loyal communities around new aspirational brands, such as Psycle and Soul Cycle, in a way mid-market gyms haven’t managed.

He highlighted this by citing a quote from Fitness First CEO Andrew Cosslett, who on joining the company from the hospitality industry noted: “The gym industry might be great at fitness, but it has never been very good at connecting with customers.”

In response to these new competitors, traditional mid market giants such as Fitness First and David Lloyd are piloting their own microgym brands, while some industry observers believe that embedding these boutique concepts within existing health clubs could preserve their status as the traditional centre of active lifestyles.

Algar pointed out that, as with the initial wave of microgyms, many of the entrepreneurs behind boutique clubs are arriving from outside the health and fitness industry, bringing new ways of thinking. Whichever path traditional gyms choose to take, he concluded, they will need to be clear in their approach and embrace innovation if they are to succeed.

The focus on the emergence of microgyms served as an apt precursor to Algar’s forthcoming report on the sector - which is expected to be released in December.

Health Club Management will be in attendance for the duration of the event and (WiFi permitting) will be live reporting on key developments via the HCM website.

A preview of the event can be found in the September edition of HCM magazine on pp.26-27.

Traditional health clubs offering a broad selection of activities at a mid-range price are at serious risk of having their business ‘salami-sliced’ away by specialised competitors.
HAF,FIT,IND,EVT,PHR
934328_953695.jpg

News

Glasgow Life, which runs leisure and culture facilities on behalf of Glasgow City Council, has
Fitness equipment firm Nautilus Inc is looking for a buyer for its commercial equipment brand
Boutique gym operator, Gymbox, faced threats of legal action over its bid to reopen on
Technogym has announced the launch of live streaming and on-demand classes. The new content will
A number of gym operators are concerned that local lockdowns could come into effect in
Prime Minister Boris Johnson has announced that gyms may be able to reopen in a
SIBEC
SIBEC
Incorpore and MoveGB are pleased to announce they have entered into a landmark partnership, combining
UK consumer confidence has improved significantly since the beginning of the lockdown, with a fifth
The PGA Tour has recently bought 1,000 Whoop bands for its golfers, after PGA Tour
ukactive has announced that Active Uprising and the National Summit are going digital as part
Industry body ukactive has today (1 July) hosted a delegation of government and public health
Health and fitness company Ingesport – which operates the GO fit chain of gyms in
Mountainside Fitness in Arizona has filed a lawsuit against state's governor, Doug Ducey, after he
ukactive
ukactive
As countries around the world gear up to relax their lockdown rules, there remains a
Physical activity levels in England have continued to fall from those recorded at the initial
Franchise operator Club Pilates has shown that there is growing confidence in the US fitness
Fitness and athletic apparel firm Lululemon will acquire at-home fitness tech firm Mirror in a
EMD UK
EMD UK
1 - 15 of 11,502
Features
Training
Balance training is set to become a major fitness trend, with exercisers increasingly appreciating the benefits of having a strong core and good balance, particularly as they age. Lauren Health-Jones rounds up the latest product releases
Features
Reopening
David Lloyd Leisure has launched a raft of outdoor classes, including an enhanced role for its Battlebox concept, as Liz Terry reports
Features
feature
As the health and fitness industry gears up for reopening, Caroline Constantine, MD of Right Directions, shares critical guidance about safe operating procedures
Features
Talking Point
The fitness industry has shown incredible flexibility during lockdown, pivoting to digital to keep people active. But as lockdowns end, we ask what impact the pandemic will have on facility provision
Features
Partner briefing
BMF, the outdoor fitness franchise company co-owned by Bear Grylls, is launching a £1m initiative designed to offer financial support to PTs and exercise professionals in getting back to work after the lockdown
Features
Statistics
More than 65,000 people responded to a survey designed to gauge what members want and expect from the sector after lockdown, as Leisure-net’s Dave Monkhouse reports
Features
Supplier showcase
Working with Precor, Aberdeen Sports Village has undergone a £500k overhaul to strengthen the user experience and put digital connectivity at the core of its offering
Features
People
HCM people

Ben Lucas

Founder, Flow Athletic, Sydney
We advise our Flow Athletes to complete classes at a ratio of one yoga class to one strength class to one cardio class. This combination has very positive effects
People
I want us to make sure we’re still the go-to sector with the greatest power to improve health and wellbeing in society. We absolutely must not abdicate that opportunity
People
HCM people

Aaron Smith

Founder, KX Pilates
‘KX’ stands for ‘the Kaizen Experience’, which means ‘change for the better’ in Japanese. It’s a philosophy that focuses on continuous improvement. We’re always seeking to improve, not only as a company but as individuals
People
HCM people

Jo Smallwood

general manager, Oldham Leisure Centre
We saw the opportunity to initiate new partnerships with the Oldham Foodbank to help local residents during the COVID-19 crisis. We can’t serve our community in the way we would usually do, so we’ve moved resources to help where people need us most
People
Kate Cracknell talks connected health and digital transformation with Chris Blackwell-Frost, Martin Friend and Rick Crawford from Nuffield Health’s senior management team
People
HCM people

Michael Ramsay

Founder and director, STRONG Rowformer
There’s something about the combination of fast-twitch and slow-twitch fibres working together that absolutely destroys you and gives you an almost euphoric feeling at the end of every workout
People
Around 50% of our members are currently continuing to pay full membership, with another 10% taking up virtual-only digital membership
People
HCM people

Dr Jonathan Leary

Remedy Place, West Hollywood: Founder and CEO
Remedy Place teaches people how to take care of themselves and gives them the tools they need to be holistically healthy
People
HCM people

Professor Zhen Yan

director of the Center for Skeletal Muscle Research, University of Virginia
Regular exercise may help people survive COVID-19
People
Featured supplier news
Featured supplier: EGYM presents Corona Gym Solution, for the successful re-opening of fitness studios
Finally, the time has come: fitness and health facilities around the globe are gradually resuming operations.
Featured supplier news
Featured supplier: myFitApp launches branded live-streaming as part of its COVID-19 support package
Innovatise, the company behind myFitApp, has announced the immediate availability of its customer- branded live-streaming solution.
Video Gallery
Temple Gym - Nautilus Equipment
Core Health & Fitness
Temple Gym - Nautilus Equipment Read more
More videos:
Company profiles
Company profile: MoveGB
Move is the fitness marketplace connecting our partners with customers through the largest variety of ...
Company profiles
Company profile: EXF Fitness
EXF offer so much more than modular systems and pick and mix installations, they don’t ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Spa software
SpaBooker: Spa software
Wearable technology solutions
MyZone: Wearable technology solutions
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Exercise equipment
Matrix Fitness: Exercise equipment
Fitness software
Go Do.Fitness: Fitness software
Lockers/interior design
Fitlockers: Lockers/interior design
Gym flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Gym flooring
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Trade associations
International SPA Association - iSPA: Trade associations
Property & Tenders
Greywell, Hampshire
Barnsgrove Health and Wellness Club
Property & Tenders
Derby City Council
Property & Tenders
Diary dates
21-24 Sep 2020
Loews Coronado Bay Resort, Coronado, United States
Diary dates
22-23 Sep 2020
Heythrop Park, United Kingdom
Diary dates
17-23 Oct 2020
Pinggu, Beijing, China
Diary dates
27-30 Oct 2020
Messe Stuttgart, Germany
Diary dates
03-06 Nov 2020
Online,
Diary dates
27-28 Nov 2020
Athena, Leicester, 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
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