David Beattie - Fitness Market evolution conference update 2012
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David Beaatie, energie group Brand and Marketing Director updates the business at the 2012 évolution conference in Coventry
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David Beattie - Fitness Market evolution conference update 2012
- 1. Market update David Beattie Group Brand & Marketing Director
- 2. Our sectors performance this year. •The 2012 State of the UK Fitness Industry report concludes “Better than expected overall performance”; • Market value – has grown by 1.4% to £3.86 billion • Membership levels – Perhaps the strongest growth indicator, are up 3.4% to 7.6 million • Growing the consumer base – 12.1 per cent of the UK population are now registered as members of a health and fitness club or publicly-owned fitness facility contrasting with 11.9% in 2011.
- 3. •£600m debt mountain. •Entered into a major financial restructure (Company Voluntary Arrangement, CVA). •Buyers being sought for as many as 71 of its 150 clubs in the UK, leaving a potential UK estate of 79 clubs. •Klick low-cost project presently on hold. •Andy Cosslett, CEO, said: “This will see us emerge as a company that is largely debt free and with the necessary financial firepower to develop.”
- 4. • 32 Gyms at present. • 70 sites by the end of 2013. • £37m expansion, with each club requiring an investment of £800K -£1m. • Pure Gym targeting former JJB Sports landlords.
- 5. • 23 sites currently in operation. 18 sites in development. • Turnover increased from £7.2m to £13.5m in past 12-months. • Group now has over 100,000 members.
- 6. • Back on the move finally. • Opening in Cardiff & Birmingham. • Rumours about Fitness First sites.
- 7. • Opens first High Street ‘club’. • Located in Putney, South London. • These new ‘studios’ will offer a range of classes, personal training and physiotherapy.
- 8. FIA Rebrand • Over the last five years the FIA’s representation has steadily broadened beyond the traditional “fitness” landscape. • The organisation will represent a broader range of members in health and wellbeing.
- 9. The Americans are coming! Again!
- 10. The Americans are coming! Pt. II • 24 hour gym access. • 1500 gyms across US. • 2 gyms launched in the UK. • £24.99 avg. price point in UK.
- 12. The Americans are coming! • 24 hour gym access. • Access to 1800+ clubs around the globe. • 6 gyms launched in the UK so far. • £30.99 avg. price point.
- 14. The Americans are coming! • Their first premium club opens in Kensington, London later this year. • A luxury fitness company charging min £175pm. • Over 50 clubs in US and Canada so far.
- 16. In the States! • Planet Fitness reached their 500th club • $15/month. The average membership in the US is $49/month • Focuses on the needs of occasional or first-time health club members
- 18. A new trend in the States! • Group interval fitness that’s “sweeping the nation”. • Session packages $180 (£112)for 10 classes. • Additional sessions extra – $99 for 8 sessions per month. • Is this a trend that could work in the UK?
- 19. Orange theory video http://www.youtube.com/watch? v=NOmw64GBuYQ From start to 1.35 please
- 20. In Oz! • No contracts. Open 24/7. • Over 100,000 members. 100+ locations. • Weekly membership $11.95 based on recurring fortnightly direct debit. • Converted that would be £31 a month with a "Club Access Fee“ of £95.
- 22. In Europe! • No contracts. Low fees. Open 24/7. • Over 1,000,000 members. 140+ locations • €16.90 per month (€18.90 in Austria and Spain)
- 23. In Europe! • Mrs.Sporty was founded in 2005. • Co-founder is the former tennis player Steffi Graf. • 300 clubs with over 80,000 members in Germany, Austria, Switzerland and Italy.
- 25. Summary • Members of the public are still prioritising their health during these difficult economic times. • The UK and global fitness industry is growing and buzzing with new innovation. • The arrival of the US competitors and new home grown start-up competitors further demonstrates confidence in our sector. • As the Market leader in UK fitness franchising, we will be copied and challenged. • It will be more important than ever for your club to stand out in your market, be that targeting women, children, the deconditioned or the budget conscious!
- 27. Thanks and well done! • Number of énergie Clubs taking part = 94 • Number of events in the UK = 150 (est) • Twitter reach = 1.2 million people • Tweets from BBC News, Dame Kelly Holmes; Reebok; Change4Life • Amount of press coverage exposure = £120K (tbc) • Amount raised for Teenage Cancer Trust = ???
- 29. And finally…
Editor's Notes
- Good afternoon, I’m And its my pleasure to provide you with a review of our industry over the past 12 months and to keep you abreast of what’s coming our way from home and abroad…
- Summary – It is heartening to see growth given the overall economic situation. Regarding Ireland – I have spoken to Kilian Fisher the former head of ILAM, although no official reports exist, anecdotally he believes membership rates are growing and recovering over the past 2 years, however there continues to be pressure on annual contracts and discounting/offers are driving sales.
- They took on more debt that they could afford. Could walk away from as many as 71 of there current clubs, What will happen to those 71 clubs isn’t yet clear. 62 clubs involved in CVA, meaning; Landlords accepting a reduction in rent to approx. 65% of the pre-CVA level. A further 17 clubs are not part of the CVA. Klick Fitness is at best on hold.
- Pure Gym, the low-cost fitness chain backed by New Look founder, Sir Tom Singh, is on track to more than double in size by the end of next year as it benefits from struggling retailers, such as JJB Sports. who will shortly find themselves without tenants The budget gym group, started in 2009 with just four clubs, is on track to have 70 sites by the end of 2013, up from 32 at present. Pure Gym is spending £37m to push its expansion, with each club requiring an investment of £800,000-£1m. Deputy chairman Peter Roberts, who ran the Golden Tulip hotel chain before it was sold to Whitbread (Berlin: WHF4.BE - news) in 2007, said the fledging leisure group had acquired prime sites as a result of problems in the retail sector. Pure Gym could come to the rescue of some former JJB Sports landlords who will shortly find themselves without tenants as the beleaguered retailer goes through a pre-pack administration, Mr Roberts suggested. Sports Direct (Other OTC: SDIPF.PK - news) will cherry-pick 60 JJB (LSE: JJB.L - news) stores through a £30m deal but there is uncertainty over the retailer's remaining 120 sites. "I think a lot of them [JJB stores] will probably suit us," said Mr Roberts. Pure Gym earlier this year secured an extension of its bank facilities with Barclays , up to £15m from £7m, to help fund its expansion
- That averages 4400 members per club.
- An interesting announcement to watch out for in the coming months from our trade association…
- In our 9 years we’ve seen US fitness groups launch in the UK with varying degrees of success… 4 Gold’s gyms, 1 Contours (400 locations) and 120 Curves…
- A few words on the new crop…
- We agree with a lot of the philosophy of this anytime ad, but will it stack up in the crowed price sensitive UK cities?
- so sweat it out alongside stars like Cameron Diaz at this fitness club 25 clubs in New York alone! Designed as temples of well-being Coat check, EUCALYPTUS TOWELS 3 brands Equinox Fitness, PURE Yoga and Blink Fitness. 9 new Budget gyms under the Blink brand…PURE Yoga – New York based studios
- 'Judgment Free Zone' - 500 clubs reached this year…The fitness club was founded in 1992, when Michael Grondahl acquired a financially struggling gym and dramatically reduced prices to compete against better-known brands. The low-cost business model focuses on the needs of occasional or first-time health club members rather than more experienced members
- Welcome to Orangetheory Fitness, the energizing group interval fitness concept that is sweeping the nation! Orangetheory Fitness is a one-of-a-kind workout broken into intervals of cardiovascular and strength training, using a variety of equipment including treadmills, rowing machines, TRX suspension training™ and free weights to tone your body and gain energy throughout the day.
- Rumours about coming to the UK
- Over 7k per site avg.
- Note anything familiar?
- Congratulations Long Eaton, Bracknell, Fareham, Newport Pagnel, Wilmslow, Epsom and Andover, Andrew White even managed 2 radio intreviews
- For those of you not familiar with our monthly Fit4less viral video’s, here’s our latest!