FITNESS NEWS OCTOBER

The Countries 

• Global health club market driven by HVLP clubs. 
  • A recent global report published by IHRSA recaps robust growth trends in most markets with solid demand as well as a remarkable rise in attendance.
  • The report confirms that the industry’s growth last year was driven by HVLP players. 

• Also, smart cost gyms grab share in Spain. 
  • The dynamics are driven in part by Basic-Fit, which opened 22 clubs in the country in one single day reaching a total of more than 130.
    • The group estimates its potential at 450 to 650 clubs in Spain in 2030. 
  • Other expansive players are Synergym and Viva Gym who return to a growth program envisaging more openings in 2024. 
  • The Spanish market remains highly fragmented since the five largest players only amounted to 7.5% of the market in club numbers at the end of 2022.
     
    • It was estimated by Deloitte and EuropeActive at 4,619 clubs and 5.37 M members. 

The Chains 

• Planet Fitness (HVLP, KA US) pushes faster global growth. (Link)
  • The company is preparing its international expansion push after the sudden exit of its CEO Chris Rondeau.
     
    • Its departure sent the shares down by more than 20% below their price before the news. 
  • Planet is building a full-fledged team to accelerate international growth aiming to crack three to four countries per year. 
     
    • They also estimated its potential at 4,000 clubs in the US alone.
    • Their annual report shows that international clubs made up just 2.6% of its franchise revenues in 2022, and 1.1% of its corporate club sales. 
       
• The Gym Group (HVLP, UK) works on a data-led strategy. 
  • The operator prepares to work on an updated growth strategy after identifying the potential to improve pricing within other metrics. 
  • The group’s sales jumped by 18.5% for the first half of this year being on track to deliver its plans for the full year. 
     
    • This growth also includes a 9.7% increase in membership to 867,000 in H1.
      
• Leejam, owner of Fitness Time (Premium, Saudi Arabia), signs a deal to upgrade 150 clubs.
  
  • Technogym will be the operator chosen to upgrade the clubs in a deal finalized in the context of the Italian-Saudi forum in Milan earlier this month.
     
    • The supplier’s sales already jumped by 45.2% to €46.6 million in the Middle East, India, and Africa for the first six months of this year.

• Crunch Fitness (HVLP, KA US) pushes further into corporate wellbeing. (Link) 
  • The company is currently focused on an aggressive expansion plan taking a comprehensive look at mental and emotional health.
      
    • Also, with increased interest in its corporate wellbeing arm pointing out studies that show increased productivity by introducing a workout routine.
      
  • The company’s offering can be found both in one of its 400+ clubs or on its new digital platform, Crunch+, which offers on-demand and live-streamed workouts.
    
    
• RSG Group (Group, Germany) opens a new flagship John Reed club in Berlin. (Link) 
  • Spread across 3,136 m², the club has been designed to highlight the architectural aspects of the historic site, the Bötzow Brewery building.
  • The club features cardio zones, a free weight area, an “equipment park” and a wide range of fitness programming, including reformer Pilates, treadmill classes, and functional and group workouts. 
    • The premium location also offers nutrition coaching, personal training, pools, and saunas. 
• Xponential (Boutique group, US) maps studio expansion. 
  • The company has 257 franchised studios obligated to open across Europe in the next few years. 
  • The group has struck a deal with Gympass under which studios from all brands run by the group in the US will be available on Gympass from October.
  • Their target for this year remains to include 540 to 560 studio openings. 
     
• Pure Gym (HVLP, KA UK) raises £805M for refinancing. 
  • The group currently holds 582 gyms and franchises at the end of June across the UK, Denmark, Switzerland, the Middle East, and the US.
     
    • The company plans growth in the UK and Switzerland with its own clubs and through franchising in other international markets. 

• Third Space (Premium, UK) agrees on a £88.5M loan to optimize growth. (Link) 
  • They believe on the success of their concept by capitalizing on a combination of excellent demand for our clubs from new members, as well as very attractive real estate opportunities.
    
    
    • The strong demand is reflected in many clubs operating with waiting lists.
      
  • Also, they acknowledge the high entry costs meaning low competition in concepts alike. 

The Cocktail 

• Kevin Yates, the founder of Trib3, has become COO at Lift Brands in EMEA with an assignment to expand the Snap Fitness brand in the regional market. He will remain a shareholder of Trib3. 
• Dave Wright steps down as Group CEO of Myzone. The new CEO with immediate effect will be Dave Stalker, who is also president of Europe Active. (Link) 

Did you know that the voice actors who voiced Mickey Mouse and Minnie Mouse actually married each other in real life? Since Disney has not really ever told whether Mickey and Minnie are married, the voice actors Wayne and Russi kept it a secret to avoid their marriage affecting the animated characters’ unknown relationship.