Sunday, July 14, 2024

Gym Group beefs up its London presence as ‘fitness IQ’ rises

Must read

Average revenue per user is £20.44 at the  low-cost chain (The Gym Group)

Average revenue per user is £20.44 at the low-cost chain (The Gym Group)

Gym Group is beefing up its presence in the capital, as the low-cost fitness firm muscles in on new locations in Euston, East Ham, Bromley-by-Bow and Orpington.

 

Will Orr, its chief executive, has described the company as “the EasyJet or Premier Inn” of fitness. He said its next phase of expansion, with 50 new sites planned between 2024 and 2026, would be in the “classic types of location” for the firm in “suburban and inner suburban areas.”

 

The 237-strong chain began in Hounslow in 2007. It pay-as-you go, contract-free model makes it popular with young people, who see keeping fit as part of their social life.

“We’ve got quite a big base of students, for students and young people generally, going to the gym is now a social activity, you get groups going in the evening. It’s hardwired into the culture, increasingly,” Orr told the Standard.

There are now 905,000 members. In a trading update out today, Gym Group revealed average revenue per member per month of £20.44, up 9%. A mid-market gym membership typically costs between £50 and £60 a month.

 

Gym Group said it expects annual profit at the “higher end” of market expectations of between £38 million and £43.1 million.

Orr said: “Awareness of the importance and benefits of fitness is increasing all the time. We call it ‘fitness IQ’, people’s understanding of exercise, not just cardio but strength, whether you are young, middle-aged or old. “

Latest article