Table of Contents
Executive Summary
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- Impact of COVID-19 on health and fitness clubs
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on the UK private health and fitness club market, 23 August 2020
- The market
- COVID-19 expected to more than halve market value in 2020
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- Figure 2: Value of the UK private health and fitness club market (prepared on 10 August 2020), 2015-25
- Risk prevention measures will also slow recovery
- Remote-working era requires focus on outer city locations
- Market shifts require an assessment of brand proposition
- Companies and brands
- Fitness clubs pivot to digital
- Low-cost operators use small-box formats to expand footprint
- PureGym strengthens European position
- JD Gyms acquires Xercise4Less
- David Lloyd opens first stand-alone boutique studio
- The consumer
- Nearly 1 in 4 were health and fitness club members pre-COVID-19
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- Figure 3: Membership of health and fitness clubs before COVID-19, 4-18 June 2020
- British public still largely uncomfortable with attending gyms
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- Figure 4: Attitudes towards attending a gym, 23-30 July 2020
- Multiple challenges mean taking a long-term approach
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- Figure 5: Reasons for cancelling health and fitness club membership, 4-18 June 2020
- Gym equipment most missed feature of the gym
- Position the gym at the heart of communities
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- Figure 6: Missed features of health and fitness clubs, 4-18 June 2020
- Over half of Brits have used some type of online fitness product
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- Figure 7: Past usage and future intentions to use online fitness services, 4-18 June 2020
- Free workouts received largest upticks during lockdown
- Tailor free options towards beginners, and paid options towards advanced exercisers
- Mental-health services can provide key differentiator
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- Figure 8: Interest in additional mental-health services at health and fitness clubs, 4-18 June 2020
- Hybrid memberships will become the norm
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- Figure 9: Interest in online services at health and fitness clubs, 4-18 June 2020
- Earning consumer trust more important than ever
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- Figure 10: Attitudes towards health and fitness clubs and COVID-19, 4-18 June 2020
COVID-19 and Health and Fitness Clubs
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- Impact on the market
- Market value expected to more than halve in 2020…
- …but is expected to recover in 2024
- Era of remote working will impact city venues
- Impact on consumers
- COVID-19 leading reason for member cancellation
- British public still largely uncomfortable with attending gyms
- Earning consumer trust more important than ever
- Wellbeing at the forefront for consumers
- Lockdown drove largest upticks for free online fitness options
- Mental-health services can provide key differentiator
- Hybrid memberships will become the norm
- Impact on companies and brands
- DW Fitness goes into administration
- Fitness clubs pivot to digital
Issues and Insights
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- Position the gym at the heart of communities
- Venues can compete in the digital fitness marketplace
The Market – Key Takeaways
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- Market value expected to more than halve in 2020
- Remote-working era requires focus on outer-city locations
- Virus impacts will be felt differently among market segments
Market Size and Forecast
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- Closures hit health and fitness club market hard
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- Figure 11: Short-, medium- and long-term impact of COVID-19 on the UK private health and fitness club market, 23 August 2020
- Lockdown
- Re-emergence
- Recovery
- Market value expected to more than halve in 2020
- The longer-term outlook is positive
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- Figure 12: Market size for health and fitness club sector (prepared on 10 August 2020), 2015-25
- Market drivers and assumptions
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- Figure 13: Key drivers affecting Mintel’s market forecast (prepared on 10 August 2020), 2015-25
- Learnings from the last recession
- What happened
- What’s different
- What it means
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- Figure 14: Market value of health and fitness club sector, 2006-16
- Forecast methodology
Market Segmentation
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- Market shifts require an assessment of brand proposition
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- Figure 15: Health and fitness club operator types, by typical key proposition, 2020
- Membership fees and additional revenue cut due to lockdown
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- Figure 16: Consumer spending in private health and fitness clubs, 2014-20
Market Drivers
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- Consumer confidence plummeted
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- Figure 17: Consumer confidence in personal financial situation over the next 12 months, July 2019-20
- Government support critical to survival
- Remote working era will impact inner-city venues
- Technological innovation accelerated by lockdown
- Health and safety regulations essential for building trust
Regulatory and Legislative Changes
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- Initial support package welcome
- Gyms allowed to open on key high-street lots
- ukactive demands more government support
Companies and Brands – Key Takeaways
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- Fitness clubs pivot to digital
- Low-cost operators use small-box formats to expand footprint
- PureGym strengthens European position
- JD Gyms acquires Xercise4Less
- David Lloyd opens first stand-alone boutique studio
Key Players
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- Low-cost
- PureGym
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- Figure 18: PureGym estimated site numbers, member numbers, revenue, region, offer and outlook, August 2020
- The Gym Group
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- Figure 19: The Gym Group estimated site numbers, member numbers, revenue, region, offer and outlook, August 2020
- Mid-market
- Anytime Fitness
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- Figure 20: Anytime Fitness estimated site numbers, member numbers, revenue, region, offer and outlook, August 2020
- Premium
- Nuffield Health
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- Figure 21: Nuffield Health estimated site numbers, member numbers, revenue, region, offer and outlook, August 2020
- David Lloyd
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- Figure 22: David Lloyd estimated site numbers, member numbers, revenue, region, offer and outlook, August 2020
- Key players that left the market
- DW Fitness First
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- Figure 23: DW Fitness First estimated site numbers, member numbers, revenue, region, offer and outlook, August 2020
Market Share
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- Revenue and memberships dependent on market position
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- Figure 24: Key players in the health and fitness club market, site numbers, member numbers and most recent turnover, 2018-19
- Low-cost segment continues location boom
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- Figure 25: Estimated low-cost operator number of sites, by year, 2015-20
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- Figure 26: Key players in the low-cost segment by estimated market share in terms of number of sites, August 2020
- Mid-market squeeze continues to threaten proposition
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- Figure 27: Key players in the mid-market segment by estimated market share in terms of number of sites, August 2020
- Additional services critical for premium segment
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- Figure 28: Key players in the premium market segment by estimated market share in terms of number of sites, August 2020
- Boutiques compete with experience
Competitive Strategies
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- Consolidation
- JD Gyms acquires Xercise4Less
- PureGym strengthens European position with Fitness World acquisition
- Distribution changes
- Low-cost operators use small-box formats to expand reach
- David Lloyd opens first stand-alone boutique studio
Launch Activity and Innovation
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- Fitness clubs pivot to digital
- The Gym Group partners with class-based app Fiit
- PureGym boosts digital content
- Les Mills grabs a suite of content partnerships
- Holistic wellbeing services in demand
- ‘Mental health gym’ launched in Manchester
- David Lloyd opens wellbeing-focused pop-up restaurant
- Family fitness on the agenda
- Family-friendly marketing positions club as social space
- Third Space launches kids’ club
Advertising and Marketing Activity
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- Spend from health and fitness club operators surged in 2019
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- Figure 29: Total above the line cinema, direct mail, door drops, digital, outdoor press, radio and TV advertising expenditure of 10 key health and fitness club operators, 2015-20
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 30: Attitudes towards and usage of selected brands, July 2020
- Key brand metrics
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- Figure 31: Key metrics for selected brands, July 2020
- Brand attitudes: David Lloyd deemed consistently high quality
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- Figure 32: Attitudes, by brand, July 2020
- Brand personality: Expanding number of locations is making low-cost brands more accessible
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- Figure 33: Brand personality – macro image, July 2020
- PureGym seen as most affordable
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- Figure 34: Brand personality – micro image, July 2020
- Brand analysis
- PureGym mass appeal down to value for money and widespread locations
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- Figure 35: User profile of PureGym, July 2020
- Nuffield Health’s wider wellbeing focus boosts trust in expertise
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- Figure 36: User profile of Nuffield Health, July 2020
- David Lloyd Clubs offer a more exclusive, high-end option
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- Figure 37: User profile of David Lloyd Clubs, July 2020
- Anytime Fitness continues to struggle for brand awareness
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- Figure 38: User profile of Anytime Fitness, July 2020
- DW Fitness First must invest in customer experience
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- Figure 39: User profile of DW Fitness First, July 2020
The Consumer – Key Takeaways
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- Customer service will be critical to boost new joiners
- Focus on winning back cancelled members in the future
- Seize the opportunity to be a location-independent wellbeing brand
- Hybrid memberships will become the norm
- Position the gym at the heart of communities
- Mental-health services can provide key differentiator
Impact of COVID-19 on Consumer Behaviour
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- Perceived risk of exposure has dropped
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- Figure 40: Concern of exposure risk to COVID-19/coronavirus, 28 February-30 July 2020
- Consumers still cutting back on leisure, but signs of recovery
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- Figure 41: Anticipated consumer expenditure on leisure/entertainment, 16 April-30 July 2020
- Wellbeing more important than ever
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- Figure 42: Agreement with Mintel Wellbeing Trend Driver statements, May 2020
Health and Fitness Club Membership
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- Nearly one in four were health and fitness club members pre-COVID-19
- Price will be critical for younger consumers
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- Figure 43: Membership of health and fitness clubs before COVID-19, 4-18 June 2020
- British public still largely uncomfortable with attending gyms…
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- Figure 44: Attitudes towards attending a gym, 23-30 July 2020
- …but seven in 10 intend to continue with membership
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- Figure 45: Intention to continue health and fitness club membership, 4-18 June 2020
Reasons for Cancelling Membership
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- Clubs face multiple challenges…
- …so focus on winning back cancelled members in the future
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- Figure 46: Reasons for cancelling health and fitness club membership, 4-18 June 2020
Missed Features of Health and Fitness Clubs
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- Gym equipment critical in the online vs offline competition
- Operators use equipment innovations to create new revenue streams
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- Figure 47: Missed features of health and fitness clubs, 4-18 June 2020
- Position the gym at the heart of communities
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- Figure 48: Missed features of health and fitness clubs – NET, 4-18 June 2020
- Rethinking the role of the gym as a ‘third place’
Usage and Future Interest in Online Fitness Services
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- Over half of Brits have used some type of online fitness product…
- …enabling shift from venue-based brand to ‘wellbeing’ brand
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- Figure 49: Past usage and future intentions to use online fitness services, 4-18 June 2020
- Free workouts received largest upticks during lockdown
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- Figure 50: Usage patterns of online fitness services prior and during COVID-19, 4-18 June 2020
- Tailor free options towards beginners, and paid options towards advanced exercisers
Interest in Additional Health and Fitness Club Services
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- Mental-health services can provide key differentiator
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- Figure 51: Interest in mental-health services at health and fitness clubs, 4-18 June 2020
- Hybrid memberships will become the norm
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- Figure 52: Interest in online services at health and fitness clubs, 4-18 June 2020
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- Figure 53: Interest in additional health and fitness club services by membership of health and fitness club before COVID-19, 4-18 June 2020
Attitudes Towards Health and Fitness Clubs and COVID-19
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- Earning consumer trust more important than ever
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- Figure 54: Attitudes towards health and fitness clubs and COVID-19, 4-18 June 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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