UK CLUBS – OVERVIEW
UK CLUBS – OVERVIEW
PRIVATE SECTOR
PRIVATE SECTOR
A BUZZ OF POSITIVITY
Meanwhile, the strong growth of Third Space shows there is also appetite in the market for premium offerings, with loyal customers “fully invested” according to lender OakNorth (see interview on page 56). Third Space is “on a strong growth trajectory,” confirms CEO Colin Waggett, “but it isn’t just about growth. Our mantra is: ‘We get better as we get bigger.’” Read his interview on page 46 to find out how the business is delivering on this mantra. On page 64, Fitness First CEO Justin Musgrove explains how the chain is developing a “unique, comprehensive value proposition that gives something back to members, justifies recent price rises and meets the needs of a new generation”. He adds: “A recent PwC report suggested there’s scope for a further 2 million gym members across the UK. I wouldn’t want to be that specific on numbers, but I do believe there’s opportunity for growth. However, we first need to raise our game. Just look at the collapse of many big retail brands. We cannot afford to be complacent.”
There’s positive news from the UK’s private fitness sector, as data for the 12 months ending 31 March 2024 show club numbers stabilising back to pre-pandemic levels. There’s also been continued growth across the key metrics of member numbers, market value and penetration rate, with all three now surpassing their 2019 highs; last year, it was only market value that had surpassed pre-pandemic levels, driven by increased yield per member. Across the UK, there are now 4,513 private health and fitness clubs, up from 4,460 in 2023 – a growth of +1.2%. The number of members has also increased, reaching over 7.3 million (+5.1%), while market value has reached almost £4.5bn (+10.9%). Private sector penetration has also reached an all-time high, up from 10.2% in 2023 to 10.9% in 2024. (The previous high, in 2019, was 10.5%.) These figures represent an increase of over 355,000 members and an increase of over £440m in revenues since our 2023 report, supported by a continued rise in average fee – up more than 5 per cent over the 12 months to 31 March 2024 – to £47.24.
Private clubs
4,513
Members
7.33 m
Market value
There is appetite in the market for premium offerings, with loyal customers ‘fully invested’
Membership numbers in the low-cost segment reached an all-time high, passing the 3 million mark for the first time
£4.48 bn
Average fee
PureGym remains the leading private sector operator in the UK by number of clubs and number of members. Adding 34 locations since our 2023 report, it now operates 379 clubs in the UK (plus one temporarily closed club in Tonbridge). It remains the only operator to have more than 1 million members (over 1.5 million in the UK). PureGym’s pipeline suggests it will reach the 400-club mark in the UK over the next 12 months (see page 73). PureGym is followed by The Gym Group as the second-largest private sector operator (see page 88). It added net four clubs to take it to 234 sites – and around 900,000 members – in the 12 months ending 31 March 2024. Joining these two low-cost chains are three other private sector operators with more than 100 clubs: Anytime Fitness, Nuffield Fitness & Wellbeing, and David Lloyd Clubs. There are also five operators with 50–100 clubs: Snap Fitness, JD Gyms, Bannatyne, Sports Direct Fitness and énergie Fitness.
£47.24
In total, 1,365 clubs are now managed by the top 10 operators, up from 1,328 (+37 clubs) since 2023. Over the last 12 months, this leading cohort has gained almost 250,000 members and grown its market value by £250m (to pass £2.5bn for the first time). The top 10 brands opened 65 brand new clubs in the last months (down from 98 in the previous year), with almost half of these operated by PureGym. In the same period, the top 10 closed 32 clubs (down from 35 in 2023). Low-cost private club numbers are up slightly this year (from 724 to 743). This is despite Coach Gym, Foundry Gym, Lifestyle Fitness and Revolution Fitness all dropping out of this segment; these operators no longer charge under £25, on average, at the majority of their clubs.
Penetration rate
10.9 %
42
43
STATE OF THE UK FITNESS INDUSTRY REPORT 2024
STATE OF THE UK FITNESS INDUSTRY REPORT 2024
Made with FlippingBook - Online catalogs