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February 2011
The UK’s No 1 fitness industry magazine
Survey reveals confidence for future
Owners unite to oppose budget gym By Christina Eccles
finding it hard.
WORRIED Swansea gym owners have joined forces to oppose the conversion of a local building into a new budget gym, which they fear could put them out of business. Budget chain The Gym Group has applied for planning permission to convert the first floor of a former shopping centre into a new gym. But existing gym owners in the city are concerned that a new club – potentially offering cheaper membership and longer opening hours – will make it even harder to stay in business in what is already a competitive marketplace. If the development goes ahead, the new gym will be situated just 400 yards from independent gym Burns Fitness, where there are already about eight operators within a mile of the club. General manager Anthony Williams said: “A lot of local gyms have objected to planning permission. We have got about 30 gyms here already, which is a lot for the size of our city, and with the recession and VAT increase as well, gyms are already
“A gym which offers £15 per month membership and 24-hour opening hours could send a lot of gyms out of business. “From our point of view, it would really affect us. There has been an increase in competition anyway and we have all seen a downturn in the last two to three years.” Burns Fitness currently offers membership for about £25 a month and Anthony insists there is no way that they could lower prices further. He is also worried that cheap membership prices may lead to a change in perception of gyms, which may not be seen by the public as a valuable service if the cost to be a member is low. He added: “£25 is as cheap as we can go and if the cheaper gyms get in, more people could see gyms as a devalued entity. “As an independent gym we always try to push the service side but no way could we go any cheaper.” The Gym Group told Workout that they could not comment at this time.
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New TV show The Biggest Loser has divided the industry – with some believing that its portrayal of fitness instructors could be harmful to gyms. The show – where people compete to lose the most weight and be crowned the ‘biggest loser’ – includes intensive gym workouts with personal trainers Richard Callender and Angie Dowds (pictured with host Davina McCall) who have been criticised for being too aggressive and potentially putting people off going to the gym. What do you think? Send your comments to ce@whpl.net or contact the Workout editorial team on 01226 734463. Picture: ITV Pictures
OVER three quarters of fitness industry operators are feeling confident about the future, according to a survey by Leisure-net Solutions. The Fitness Industry Confidence Survey – which is backed by the FIA and sponsored by Leisure Industry Week – found that 83 per cent were as confident as, or more confident about the future of the industry than they were three months ago. 81 per cent also say their yield is much better, better or the same as Q4 last year, 42 per cent of operators say their retention is better year-onyear and 41 per cent say it has remained steady. Leisure-net Solutions managing director Mike Hill said: “It’s telling that, despite a much longer and deeper economic downturn than many people expected, operators’ confidence remains high. “Most operators are positive that primary income streams will hold up in 2011 and it’s both surprising and encouraging that yield has increased across the board, despite the recession.”