Next two years crucial for low cost gyms: Pure Gym's Jacques de Bruin
by Ashley Harrison | 09 Jan 2015
Competition in the low cost sector of the gym market will intensify over the next two years as operators grapple to sustain finite growth levels, predicts Jacques de Bruin, COO at Pure Gym.
Speaking to Health Club Management, de Bruin pinpointed how lower financial outputs and operating costs have eased entry into the affordable gym market, which in turn has rapidly increased the number of operators within this sector – and consequently competition levels.
However, he believes the budget sector cannot sustain this level of operator growth long-term, and therefore the next 12 to 24 months will be critical, as the affordable sector begins to consolidate. During this period, he believes the success of businesses within the affordable sector will be determined by two factors: differentiation through innovation; and the successful entry into new markets and locations, specifically London.
Meanwhile, Microgyms that identify and meet the changes in consumer demand and tailor a business model to meet such niche requirements will succeed more readily, says the former Virgin Active UK operations manager, as they will allow financially viable diversification into markets that currently have no affordable operator presence.
He foresees the mid-level and high-end sectors of the market remaining fairly consistent in their current growth levels, with the potential for a slight decline in membership numbers as the budget operators continue to grow.
He expects any decline to be minimal though, with the businesses operating in these sectors offloading the poorest performing clubs and consolidating into fewer, more profitable clubs.
To read the full feature analysing where the UK fitness sector currently sits within its product lifecycle, from the latest edition of Health Club Management, click here.
11 Dec 2014
Low cost gyms make waves on Fast Track 100 list
14 Oct 2014
Pure Gym becomes latest gym chain to target London dominance
Competition in the low cost sector of the gym market will intensify over the next two years as operators grapple to sustain finite growth levels, predicts Jacques de Bruin, COO at Pure Gym. Speaking to Health Club Management, de Bruin pinpointed how lower financial outputs and operating costs have eased entry into the affordable gym market, which in turn has rapidly increased the number of operators within this sector –
HAF,FIT,IND
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