Gym Group and PwC report shows number of low-cost gyms could double by 2026
Leisure Opportunities
Job search
Job Search
see all jobs
Latest job opportunities
Wiltshire Council
£13.86 - £24.26 per hour
Pewsey
Active Essex
Chelmsford, UK
Oundle School Sports Centre
£30,555 per annum
Oundle, Peterborough, UK
star job
Jump Giants
Competitive
Burton on the Wolds, Loughborough, UK
New Hall Hotel and Spa
Competitive salary plus benefits
New Hall Hotel & Spa

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

Job opportunities
The Gym Group
Competitive Salary and Benefits
location: Nationwide, United Kingdom
The Gym Group
100% of your PT earnings
location: Sutton Coldfield, UK
The Gym Group
100% of your PT earnings
location: Whitefield, Manchester, UK
more jobs
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.

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 for FREE ezines & magazines
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

More News

1 - 15 of 38,794
26 Jun 2019
One of England's most successful rugby clubs, Leicester Tigers, has been put up for sale. Simon Cohen, Leicester Tigers CEO revealed plans for the sale ... More
26 Jun 2019
Women's fashion magazine Stylist has entered the fitness market by opening a female-only boutique studio in London's affluent Mayfair district. The studio will be operated ... More
26 Jun 2019
Plans to redevelop Nottingham Forest's City Ground have moved a step closer after the Football League club was granted a new 250-year lease for the ... More
25 Jun 2019
The UK's National Lottery Heritage Fund (NLHF) has launched a new three-year, £100m (US$127.6m, €112m) grant scheme aimed at "ambitious, innovative and transformational" projects in ... More
25 Jun 2019
Creating opportunities for older people to get physically active represents a major driver for growth in public leisure, according to new research. A study by ... More
25 Jun 2019
The number of drownings in the UK's inland waters has risen in the last year. A survey carried out by The Royal Life Saving Society ... More
Alliance Leisure
Alliance Leisure
25 Jun 2019
Research by YouGov has shown 68 per cent of UK adults to be unaware of the fact that children should take part in 60 minutes ... More
24 Jun 2019
The Bannatyne Group has completed a £750,000 redevelopment of its latest acquisition, the historic Cookridge Hall in West Yorkshire. The operator acquired the building, which ... More
24 Jun 2019
The first stage in the preparation of a planning application for the proposed Eden Project North in the UK has been completed, with the submission ... More
24 Jun 2019
Conceptual designs have been revealed for Birmingham's Alexander Stadium, which are set to transform the athletics stadium into the main stadium of the 2022 Commonwealth ... More
24 Jun 2019
An initiative aiming to inspire primary school children and their families to try new activities together in the run up to the Tokyo 2020 Olympic ... More
21 Jun 2019
There was business as well as wellness on the agenda as the Wellness Tourism Association (WTA) held its second annual membership meeting at Canyon Ranch ... More
Focus Training
Focus Training
21 Jun 2019
Corporate fitness sales specialist Gympass has secured additional financial backing believed to be around US$300m (€265m, £237m). Led by Japan-based SoftBank Vision Fund and its ... More
21 Jun 2019
Ukactive has set out on a membership consultation, asking for views on how the not-for-profit health body can better support members' strategic goals. A membership ... More
20 Jun 2019
Tennis fans visiting this year's Wimbledon championships will be offered an opportunity to practise on Centre Court alongside Andy Murray – in virtual reality. The ... More
1 - 15 of 38,794
STA-Swimming Teachers Association
STA-Swimming Teachers Association