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LA Fitness to spend £30m on revamps
Private equity-owned gym chain LA Fitness has earmarked £30m for a comprehensive refurbishment programme of its 83-strong portfolio of health clubs in the UK.
The investment and new strategy is being driven by CEO Martin Long, who said he wants to reposition the entire LA Fitness brand.
Long said: "Gyms were originally built to rent out space containing gym equipment - members signed a 12 month contract in January and often didn't come back.
"That suited operators then, but gym membership is stuck at just 12 per cent penetration - and has been for the last few years. If the industry is to break through that it must up its game."
To tackle retention issues, Long has introduced a new customer relationship management programme which aims to ensure that staff develop and maintain a relationship with gym-goers throughout the course of their contract.
Each new or lapsed member is treated to a tailored 'Kickstart' programme to identify fitness targets and a personalised training routine to help them achieve their goals. There's a 30-minute review every 12 weeks, while new IT systems spotlight those who've not been to the club for 30 days or more.
Members also receive a call, text or email to get them back into the gym, plus other incentives such as a free personal training session or a free one month pass for a friend.
Long added that he was determined to put a halt to what he calls the "devaluation that is hitting the entire UK fitness industry".
"There are so many deals and discounts on offer that customers are not currently prepared to pay more," he said.
"It's time we instilled our worth in the minds of consumers and actually helped them achieve their goals.
"Success will not happen overnight. It's a three-year programme because it's going to take that long to remodel the clubs. We're still very much at stage one, but where we are making changes the vibe from members and staff is already very strong."
Long, the former CEO of retail chain Game, was brought into the business in late 2007 by MidOcean Partners, the private equity group that bought LA fitness for £140m when it delisted from the Stock Market in 2005.
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