by Patricia Amend
It’s inevitable. If one thing is certain in life and in the business world—it’s change.
Fortunately, when it comes to the fitness industry, change often equals growth. Consider that, according to The IHRSA Global Report: The State of the Health Club
Industry, in 2015, global industry revenue totaled $81 billion, as 151 million members visited 187,000 clubs.
Just a year later, in 2016, those numbers had jumped to $83.1 billion in revenue, 201,000 clubs, and 162.1 million members.
And, while last year we used the word “stability” to describe the Global 25 list of the most successful and respected companies in the industry, this year, while there’s a great deal of consistency, we’re also seeing some new names appear in the top rankings in several categories.
In terms of “Number of Facilities Owned,” the same four companies topped the list, as they had a year earlier. However, Bio Ritmo moved up several places, from 8th to 5th; McFit retained its 7th place position; and ClubCorp rose from 10th place to 8th. For 2016, the top seven are:
1. LA Fitness International, LLC, up 39 units, to 689
2. 24 Hour Fitness USA, Inc., down 17 units, to 424
3. Basic-Fit/HealthCity, up 30 units, to 419
4. GoodLife Fitness and Énergie Cardio, up 5 units, to 365
5. Bio Ritmo/Smart Fit, with 305 units
6. Virgin Active, with 246 units
7. McFit, with 241 units
When it comes to the companies with the fastest-growing membership totals (for both franchises and company-owned units), once again, things have shifted a bit; some of the top seven companies gained members, some lost, and others stayed the same:
1. Planet Fitness, with 8.9 million members, up from 7.3 million
2. 24 Hour Fitness USA, Inc., with 3.8 million, unchanged
3. Gold’s Gym International, with 3 million, unchanged
4. Anytime Fitness, with 2.85 million, up from 2.6 million
5. McFit, with 1.4 million, up from about 1.37 million
6. GoodLife Fitness and Énergie Cardio, with 1.3 million, up
from 1.26 million
7. Powerhouse Gym, with 1.2 million
Looking back to 2015, the first five were all ranked identically. However, GoodLife Fitness and Énergie Cardio moved up
from 7th place to 6th this year, and Bio Ritmo/Smart Fit moved up one notch—from 9th position to 8th in 2016.
What about revenues?
Once again, there were some changes in positions.
For 2016, the top seven were: Planet Fitness ($1.9 billion); Life Time Fitness, Inc. ($1.475 billion); Anytime Fitness, LLC ($1.25 billion); ClubCorp ($1.088 billion); Fizek Fitness ($587 million); Snap Fitness ($563 million); and Central Sports Co., Ltd. ($457 million).
For 2015, the top seven were: Planet Fitness ($1.5 billion); Anytime Fitness ($1.1 billion); ClubCorp ($1.05 billion); Fitness First Finance, Ltd. ($677 million); Snap Fitness ($555 million); and David Lloyd Leisure ($510 million).
Clearly, in the revenue category, franchised operations have been beating company-owned clubs.
Speaking of franchises, there’s some change there, too. For 2016, numbers one through three are the same as in 2015. They are: Anytime Fitness (up 388, to a total of 3,443 units); Snap Fitness (up 521 to 1,968); and Planet Fitness (up 192, to 1,313).
Moving down the list, Mrs.Sporty added 27 units for a total of 578, placing the company in 4th place, up from 5th in 2016. Orangetheory Fitness, which added an impressive 245 stores, took 5th place with 570. Gold’s Gym International, which stayed the same with 700-plus locations, dropped from 4th place in 2015, to 6th in 2016. Finally, 9Round rose from 456 to 497, to win 7th place for 2016.
There’s no question that the experience of change can be challenging. But few would argue that it’s a good, or rather, a great thing when it leads to consistent growth—based on strong business models that consumers want here and now, and ones that are predicated on well-executed strategic plans.
The leading companies on the IHRSA Global 25 list are proof of the truth of that today … and likely will be so in 2017, as well.
Full Article: http://pubs.ihrsa.org/CBI/2017/July2017/?page=53
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