Gym Group aiming to cash in on the growing fitness trend by rolling out scaled-down venues in small towns
- Gym Group announced that revenues are up 23.6 per cent to £153.1 million
- Group now plans to expand to more locations in smaller towns around the UK
- The group expanded by 20 sites in 2019 and will open as many as 28 in 2020
The Gym Group has revealed membership numbers jumped 9.7 per cent in 2019.
The group now plans to expand into smaller towns where a full-sized gym isn’t feasible with between five and eight of these smaller gyms planned for 2020.
The low-cost chain, which already has 175 gyms across the country, said that, by December 31 2019, membership had risen to 794,000, from 724,000 in 2018.
The group said the aim is to open more sites in towns that may not be economically viable for a full-sized 15,500 sq ft Gym Group outlet, but could work with smaller premises.
Gym Group plans to open 15 to 20 standard gyms in 2020 and between 5 and 8 smaller gyms
In addition, Gym Group plans to open 15 to 20 standard-sized gyms in 2020.
Gym Group revenues are up 23.6 per cent to £153.1 million, this includes average revenue per member per month – a key measure for the business – up 7.6 per cent to £16.02 in December.
Bosses put this down to increased sign-up to the company’s Live It membership programme which includes multi-site access and a bring-a-friend initiative.
Gym Group chief executive Richard Darwin said: ‘We expanded our business by 20 sites in 2019, which included the first two of our new small box gym concept, which delivers low-cost fitness to smaller towns.
‘There remains a long runway of potential sites in the UK and, with our small box rollout under way, we plan to accelerate the expansion of our gym estate in the coming year.
‘We have built scale and a strong platform over the past few years and, with an encouraging start to January trading, we anticipate 2020 will be another year of significant progress.’
Mr Darwin announced the new small box concept last year, and opened two – in Newark, East Midlands, and Beverley, East Yorkshire.
Joe Healey, analyst at The Share Centre said: ‘The disruptive model of flexible gyms offering consumers 24 hour access among a host of other benefits has been an area of high potential in recent years and is likely to be a popular segment for years to come.
‘These results show good progress and offer no signal of stagnating, with the Group continuing to introduce new concepts within its existing membership packages such as the roll-out of their new personal trainer model in March, which should help attract new target markets.
‘Overall investors should welcome today’s update which comes ahead of the final figures in March and will be one investors are keeping a keen eye on for further positive news.’