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
JP Lennard
JP Lennard
JP Lennard
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
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.
Related news

Budget leaves fitness industry with unanswered questions, says Huw Edwards

04 Mar 2021
The Budget announcement has left the UK's physical activity sector with "unanswered questions" and vowing ...

71,000 new health and fitness apps launched in 2020, estimates App Annie report

25 Feb 2021
Mobile data and analytics provider App Annie has released its State Of Mobile 2021 report, ...
Latest News
Plans have been revealed to build the world's deepest pool in Cornwall, UK, which would ...
Latest News
People with depression should be prescribed exercise and then monitored for the first 12 weeks ...
Latest News
Frequent strenuous exercise increases the risk of developing motor neurone disease (MND) in people with ...
Latest News
The UK government has extended the ban on commercial evictions until 25 March 2022. Announcing ...
Latest News
Operating a further four weeks at reduced capacity will place serious pressure on English fitness ...
Latest News
People experiencing homelessness are being offered free access to leisure centres by Oxford City Council. ...
Latest News
IHRSA has appointed Elizabeth Clark as its new president and CEO. Clark joins the industry ...
Latest News
Boutique studio operator TRIB3 has launched its own-brand range of luxury toiletries. The operator, which ...
HCM Magazine
Sponsored
Welcome to the world of creative fitness, where exercise and fun merge to change the way we train
HCM Magazine
Sponsored
As the UK’s first dedicated development framework for leisure comes to the end of its initial four-year term, Jamie Groves and Sarah Watts discuss the impact
HCM Magazine
Facilities
Choosing the right flooring is critical for gym and health club operators. Suppliers share their latest news, tips and product launches to help you choose wisely
HCM Magazine
Insight
As the industry enters a phase of regrowth following the loss of members during lockdown, it’s crucial to understand customer acquisition cost versus the lifetime value of each customer, as Paul Bedford and Jamie Owens explain
HCM Magazine
Sponsored
Daniel Jones is the brains behind Orbit4, the world’s first digital ecosystem to manage and facilitate the entire commercial fitness product cycle. We caught up with him at Orbit4 HQ in Cheshire
HCM Magazine
Talking Point
Consumer research has shown a population-wide surge in interest in reducing lockdown weight gain and getting fitter. Is the industry ready and willing to put its hand up to help people with weight loss? Kath Hudson reports
HCM Magazine
HCM People
We see a world where every major city has access to Solo 60
HCM Magazine
HCM magazine
Moving Communities is our chance to demonstrate our value and develop a universal service for all, argues Martyn Allison
HCM magazine
As our sector starts to recover, there will be changes in the needs of communities, consumers and the provision of opportunities. To explore this subject we hosted a virtual round table to better understand views on key workforce questions
HCM magazine
Safe Space Lockers has extended its partnership with boutique fitness franchise TRIB3, in a new 10-site supplier agreement, following the recent installation at TRIB3 Edinburgh
Opinion
promotion
While much of the fitness industry has reopened its doors across the UK over the past weeks, many members are yet to return.
Opinion: Re-engaging your post-lockdown absent members
Featured supplier news
Featured supplier news: Active IQ launches two industry-ready health and fitness diplomas
Active IQ has launched two new qualifications – the Level 2 Diploma in Health and Fitness and Level 3 Diploma in Health and Fitness – to help engage learners in an industry-ready training experience that can be tailored to suit local employer needs.
Featured supplier news
Featured supplier news: INEOS: The future of hand-sanitising
As gyms begin to reopen, cleanliness and hygiene remain an essential part of ensuring staff and members are confident to return.
Featured operators news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Featured operators 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.
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: Mindbody
Mindbody is the leading technology platform for the wellness industry, featuring an app that allows ...
Supplier Showcases
Supplier showcase - Precor: The power of networking
Catalogue Gallery
Click on a catalogue to view it online
Directory
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Fitness equipment
Precor: Fitness equipment
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Salt therapy products
Saltability: Salt therapy products
Red Light Therapy
 Red Light Rising: Red Light Therapy
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Lockers/interior design
Fitlockers: Lockers/interior design
Wearable technology solutions
MyZone: Wearable technology solutions
Uniforms
Service Sport: Uniforms
Management software
fibodo Limited: Management software
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Diary dates
01-04 Jul 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
18-19 Sep 2021
Locations worldwide,
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
28-29 Sep 2021
ExCeL London, London, United Kingdom
Diary dates
04-07 Nov 2021
Exhibition Centre , Cologne, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates

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.
Related news

Budget leaves fitness industry with unanswered questions, says Huw Edwards

04 Mar 2021
The Budget announcement has left the UK's physical activity sector with "unanswered questions" and vowing ...

71,000 new health and fitness apps launched in 2020, estimates App Annie report

25 Feb 2021
Mobile data and analytics provider App Annie has released its State Of Mobile 2021 report, ...

News

Plans have been revealed to build the world's deepest pool in Cornwall, UK, which would
People with depression should be prescribed exercise and then monitored for the first 12 weeks
Frequent strenuous exercise increases the risk of developing motor neurone disease (MND) in people with
The UK government has extended the ban on commercial evictions until 25 March 2022. Announcing
Operating a further four weeks at reduced capacity will place serious pressure on English fitness
People experiencing homelessness are being offered free access to leisure centres by Oxford City Council.
Miha Bodytec GmbH
Miha Bodytec GmbH
You’re pumped and ready for your workout. Then you see it, the dreaded ‘out of
IHRSA has appointed Elizabeth Clark as its new president and CEO. Clark joins the industry
Boutique studio operator TRIB3 has launched its own-brand range of luxury toiletries. The operator, which
Rainer Schaller's RSG Group is bringing its John Reed brand of health clubs to the
The government needs to urgently set out its plans to support physical activity and fitness
Glofox will begin offering health clubs, gyms and fitness studios instant access to financing, following
Hong Kong-based Bricks Group has revealed plans to launch its health club chain, U Time,
JP Lennard
JP Lennard
Orbit4 is the first digital ecosystem that manages and facilitates the entire commercial fitness product
A £30m luxury leisure development scheme which has been more than a decade in the
Apple has previewed its much-awaited watchOS 8, the operating system for its Apple Watch. The
Chinese health club chain Supermonkey has finalised a series E funding round, valuing the company
Gymbox has signed a partnership agreement to provide members of flexible workspace provider WeWork with
The number of health club members returning to gyms since lockdown has beaten all expectations,
The Jumeirah Group has reopened the 186-room The Carlton Tower Jumeirah, in the heart of
FIBO Exhibition
FIBO Exhibition
David Lloyd Clubs has enrolled former Labour Party deputy leader Tom Watson to help raise
TRIB3 has secured a franchise deal which will see it open 20 studios across Belgium,
Crown Sport Lockers (UK) Ltd
Crown Sport Lockers (UK) Ltd
1 - 20 of 11,922
HCM Magazine
Sponsored
Welcome to the world of creative fitness, where exercise and fun merge to change the way we train
HCM Magazine
Sponsored
As the UK’s first dedicated development framework for leisure comes to the end of its initial four-year term, Jamie Groves and Sarah Watts discuss the impact
HCM Magazine
Facilities
Choosing the right flooring is critical for gym and health club operators. Suppliers share their latest news, tips and product launches to help you choose wisely
HCM Magazine
Insight
As the industry enters a phase of regrowth following the loss of members during lockdown, it’s crucial to understand customer acquisition cost versus the lifetime value of each customer, as Paul Bedford and Jamie Owens explain
HCM Magazine
Sponsored
Daniel Jones is the brains behind Orbit4, the world’s first digital ecosystem to manage and facilitate the entire commercial fitness product cycle. We caught up with him at Orbit4 HQ in Cheshire
HCM Magazine
Talking Point
Consumer research has shown a population-wide surge in interest in reducing lockdown weight gain and getting fitter. Is the industry ready and willing to put its hand up to help people with weight loss? Kath Hudson reports
HCM Magazine
HCM People
We see a world where every major city has access to Solo 60
HCM Magazine
HCM magazine
Moving Communities is our chance to demonstrate our value and develop a universal service for all, argues Martyn Allison
HCM magazine
As our sector starts to recover, there will be changes in the needs of communities, consumers and the provision of opportunities. To explore this subject we hosted a virtual round table to better understand views on key workforce questions
HCM magazine
Safe Space Lockers has extended its partnership with boutique fitness franchise TRIB3, in a new 10-site supplier agreement, following the recent installation at TRIB3 Edinburgh
HCM magazine
We’re targeting an additional 30,000 beds over the next five years, through a mix of the group’s own developments and third party projects
HCM magazine
Physical activity gives structure and meaning to people’s lives, according to new research
HCM magazine
CV kit has been fully connective for some time, but with the rise of the hybrid gym goer, what are strength suppliers doing to meet the demand for a fully connected offer?
HCM magazine
Aneurin Leisure Trust used lockdown to transform and digitise its gyms, ready for reopening
HCM magazine
HCM people

Andy McGlynn

Founder, GSquared
Once we grow beyond Manchester we’ll go head to head with Equinox and Third Space
HCM magazine
When we questioned our customers on what they liked about The Claremont Club, they all mentioned that we were helping people who were in dire need
HCM magazine
Opinion
promotion
While much of the fitness industry has reopened its doors across the UK over the past weeks, many members are yet to return.
Opinion: Re-engaging your post-lockdown absent members
Featured supplier news
Featured supplier news: Active IQ launches two industry-ready health and fitness diplomas
Active IQ has launched two new qualifications – the Level 2 Diploma in Health and Fitness and Level 3 Diploma in Health and Fitness – to help engage learners in an industry-ready training experience that can be tailored to suit local employer needs.
Featured supplier news
Featured supplier news: INEOS: The future of hand-sanitising
As gyms begin to reopen, cleanliness and hygiene remain an essential part of ensuring staff and members are confident to return.
Featured operators news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Featured operators 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.
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: Mindbody
Mindbody is the leading technology platform for the wellness industry, featuring an app that allows ...
Supplier Showcases
Supplier showcase - Precor: The power of networking
Catalogue Gallery
Click on a catalogue to view it online
Directory
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Fitness equipment
Precor: Fitness equipment
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Salt therapy products
Saltability: Salt therapy products
Red Light Therapy
 Red Light Rising: Red Light Therapy
Whole body cryotherapy
Art of Cryo: Whole body cryotherapy
Lockers/interior design
Fitlockers: Lockers/interior design
Wearable technology solutions
MyZone: Wearable technology solutions
Uniforms
Service Sport: Uniforms
Management software
fibodo Limited: Management software
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Diary dates
01-04 Jul 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
18-19 Sep 2021
Locations worldwide,
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
28-29 Sep 2021
ExCeL London, London, United Kingdom
Diary dates
04-07 Nov 2021
Exhibition Centre , Cologne, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
Search news, features & products:
Find a supplier:
JP Lennard
JP Lennard