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FreeMotion Fitness
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UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

News

83% of US gyms survived 2020, but revenues fell 58% and a million people lost their jobs

US fitness industry revenue dropped 58 per cent during 2020 – from the US$35bn all-time high recorded in 2019 to US$15bn.

The figure comes from industry body, IHRSA, which estimates that the industry lost US$20.4bn in 2020, just one year after the sector generated its highest-ever revenues.

The US has been the country hardest hit by the coronavirus pandemic, with nearly 30 million cases and around 533,000 recorded deaths (at the time of writing).

Health clubs, gyms, and fitness studios in all states were forced to close their doors for at least one month in 2020.

In many states – including California, Oregon, and Washington – the closures persisted for most of the 12 months of 2020.

Mandated restrictions in some states allowed limited operations, ranging from outdoor or virtual-only services to a maximum of 50 per cent capacity.

IHRSA figures indicate that 17 per cent of fitness facilities closed permanently in 2020, leaving 83 per cent still trading.

Eight major fitness companies – including Gold’s Gym, 24 Hour Fitness, and Town Sports International (TSI) – filing for bankruptcy and in total, more than 1 million industry employees lost their jobs.

Some segments of the fitness industry have been hit harder than others. Data from major gym and studio payment processing companies reveal that 19 per cent of boutique fitness studios permanently closed, as of December 31, 2020.

Meanwhile, 14 per cent of gyms and traditional health clubs have ceased operations.

Commenting on the IHRSA figures, Brian Smith, MD of consumer investment banking at Piper Sandler Companies – an investment bank and institutional securities firm – said: "One has to remember that health clubs are largely fixed-cost businesses.

"A decline in revenue to such a large degree has devastating consequences, both short- and long-term.

“We are going to see lasting effects as operators look to rebuild cashflow, recapitalise their base business, rehire staff, and so forth.”

• To read more about the IHRSA report on the pandemic's effects, click here.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
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News

83% of US gyms survived 2020, but revenues fell 58% and a million people lost their jobs

US fitness industry revenue dropped 58 per cent during 2020 – from the US$35bn all-time high recorded in 2019 to US$15bn.

The figure comes from industry body, IHRSA, which estimates that the industry lost US$20.4bn in 2020, just one year after the sector generated its highest-ever revenues.

The US has been the country hardest hit by the coronavirus pandemic, with nearly 30 million cases and around 533,000 recorded deaths (at the time of writing).

Health clubs, gyms, and fitness studios in all states were forced to close their doors for at least one month in 2020.

In many states – including California, Oregon, and Washington – the closures persisted for most of the 12 months of 2020.

Mandated restrictions in some states allowed limited operations, ranging from outdoor or virtual-only services to a maximum of 50 per cent capacity.

IHRSA figures indicate that 17 per cent of fitness facilities closed permanently in 2020, leaving 83 per cent still trading.

Eight major fitness companies – including Gold’s Gym, 24 Hour Fitness, and Town Sports International (TSI) – filing for bankruptcy and in total, more than 1 million industry employees lost their jobs.

Some segments of the fitness industry have been hit harder than others. Data from major gym and studio payment processing companies reveal that 19 per cent of boutique fitness studios permanently closed, as of December 31, 2020.

Meanwhile, 14 per cent of gyms and traditional health clubs have ceased operations.

Commenting on the IHRSA figures, Brian Smith, MD of consumer investment banking at Piper Sandler Companies – an investment bank and institutional securities firm – said: "One has to remember that health clubs are largely fixed-cost businesses.

"A decline in revenue to such a large degree has devastating consequences, both short- and long-term.

“We are going to see lasting effects as operators look to rebuild cashflow, recapitalise their base business, rehire staff, and so forth.”

• To read more about the IHRSA report on the pandemic's effects, click here.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
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News

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Inclusive Fitness Boston, a health club created specifically for those with disabilities and their families,
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HCM Magazine
HCM People
There’s still no ‘stress resilience’ profession. We believe fitness professionals can fill that gap
HCM Magazine
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Can partnerships and affiliations with less obvious companies, such as fast food brands, help the industry tap into a new demographic, or is the potential for them to compromise our reputation too big a risk to take? asks Abi Harris
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It makes services and tech more accessible and affordable for wellness professionals
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Promotion
A new app called Trakk, from Pulse Fitness, promises triple benefits to operators, says Chris Johnson
HCM Magazine
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HCM magazine
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HCM magazine
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Alan Leach

Chair of IHRSA and CEO, West Wood Clubs
IHRSA is now on a mission to bring the global industry together
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NICE has done a U-turn on its controversial guidelines for treating Chronic Fatigue Syndrome, saying that physical activity or therapy should not now be routinely prescribed for patients
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With their dark vibe, pumping music and kit that needs adjusting, indoor cycling classes can be intimidating to the uninitiated. Steph Eaves asks suppliers for their tips on how to encourage beginners into the cycling studio – and keep them coming back
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There are failure points in the member journey  in any club. We’re looking to create a journey that addresses those points of vulnerability and difficulty
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We have a simplified business model, with membership starting at €35–40 a month and €1 deducted each time you visit
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Opinion
promotion
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Featured supplier news
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Life Fitness has launched a new mobile app named Life Fitness Connect to provide the ultimate workout experience.
Featured supplier news
Featured supplier news: Tanita Body Composition Analysers help attract a more diverse customer base
Code Fitness is co-owned by Steve McClory and Luke Watson and was launched in 2013 to help more people achieve tangible fitness results.
Featured operator news
Featured operator news: Everyone Active generates £342m in social value
Award-winning leisure operator Everyone Active generated £342million in social value at its sites across the country in 2019/20.
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Catalogue Gallery
Click on a catalogue to view it online
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Architects/designers
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Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
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trade associations
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Diary dates
01-03 Feb 2022
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Diary dates
07-10 Apr 2022
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