Sports Direct Fitness: We’ve found our formula
Sports Direct Fitness is planning an aggressive rollout of new health clubs in 2016, with owner Mike Ashley confident that the gym chain has found the right formula for sustained growth.
The company plans to launch up to 16 new sites in 2016 under the dual-use gym and retail concept which has seen it offer memberships from as little as £5 per month. Sports Direct hopes to capitalise on the synergy between its retail and gym divisions by offering the two prospects side-by-side under one roof.
Speaking exclusively to Health Club Management, Sports Direct Fitness head of leisure Winston Higham said the company’s owner is pleased with the refined concept, adding that plans are in place for an ‘aggressive’ expansion in the year ahead.
“We’ve developed a strong model with our new-build sites and the pulling power of a trusted brand above the door is helping us to bring in new gym members quickly,” said Higham.
“The retail and gym propositions sit well together and we’ll be looking to scale up these sites next year. We’re also introducing coffee and juice bars into the new-builds, which are also likely to offer health and protein products depending on the size of the club.”
Having made a dramatic entry into the health club market last year with the acquisition of 25 ex-LA fitness sites, Sports Direct Fitness has so far launched three of its new-build facilities. Higham conceded the chain’s initial goal of 200 sites may be out of reach in the short-term, but said the new model has put it on a solid footing for expansion.
There is also the potential for growth via further acquisitions. Having lost out to Pure Gym in the race to acquire LA fitness, Sports Direct Fitness has been rumoured to be sizing up a bid for Fitness First. Higham refused to be drawn on the speculation, saying it “isn’t the Sports Direct way” to comment.
“There are always rumours when a new player comes into the market,” he added. “Some companies like to shout about what they’re up to, but we don’t work like that. We like to get things done and we won’t talk about it until that point.”
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