I was really pleased to read this week that gym prices are
set to fall over the coming year. Now I've got a few limits to my gym-visiting potential
(aka babies), I'm reluctant to pay high monthly fees.
But a new report highlights the reasons why many established gym chains, and new contenders, may be offering their facilities at a reduced cost.
Industry expert Ray Algar, who works for Oxygen Consulting, predicts a sharp rise in "low-cost, high technology self-service gyms" over the course of this year. These new brands will put pressure on existing gyms to alter their service, cut fees, or both.
The future of well-known gyms such as LA Fitness, Fitness
First and Bannatyne will be threatened, and their market share will be squeezed.
Algar says these brands must be very precise about their business models.
"The rise of the low-cost gym sector continues to
re-shape the UK health and fitness industry," Algar says.
"This means the established mid-market clubs are having to re-invent themselves to remain relevant to very savvy consumers who increasingly are very clear on what they need and value. As I say in the report, change is hard, really hard, but running an irrelevant business is no fun at all."
"This means the established mid-market clubs are having to re-invent themselves to remain relevant to very savvy consumers who increasingly are very clear on what they need and value. As I say in the report, change is hard, really hard, but running an irrelevant business is no fun at all."
To survive the threat of "new generation" gyms, mid-market
chains may need to return to more personal services and instructors, specialist
facilities and even edging into the premium market, in order to justify their
charges.
This competitive pressure may be bad news for the big
brands, but for people like me who can't make a regular commitment to exercising
yet enjoy the gym environment (rather than pounding the pavements outside) the disruption
to the industry is simply good news.
Who knows, it may encourage reluctant exercisers to start
new regimes, and even boost the nation's overall fitness.
The "2013 review of the UK Health and Fitness Industry
and an outlook for 2014" is published by www.oxygen-consulting.co.uk
Kate Richards
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