Fitness First blames working at home as the reason for its inability to attract people to inner-city gyms.
After lockdowns “decimated” its membership, the chain reported that recovery had taken “longer than expected”.
Fitness First collected £33.2m last year in membership fees, according to newly filed accounts, compared with £50.8m for 2019. Membership fees vary from club-to-club, with prices ranging from £109 per month at the club on Baker Street to £42 for its Brighton branch.
Anthony Riley, finance director, wrote in the accounts of the company that “the return of city workers has been slower than expected, particularly in central London.”
The change in behavior has been especially impactful because most of the gyms are located close to the offices.
This comes at a time when many people are still working from home, at least part-time, after the pandemic despite concerns over its impact on productivity and economic growth.
In the accounts, Mr Riley stated: “The company is concerned about the ongoing risk of revenue reduction across its gym portfolio.”
Fitness First announced plans to close gyms and negotiate lower rents with landlords last April in an attempt to improve the company’s financial standing. The High Court approved the plan in June, despite challenges from landlords.
Six of the nine gyms in London have closed since then. These include gyms in central locations like Holborn, Aldwych and Spitalfields.
Justin Musgrove is the chief executive of Fitness First. He added that “Fitness First completed its restructuring, and now has an estate stable of twenty-eight club.”
Accounts show that Dave Whelan’s Fitness First, owned by the former owner Wigan Athletic Football Club Dave Whelan made a profit before tax of £5.2m over the 12-month period ending March 2023. The company recovered from a previous loss of £8.8m.
The number of members increased by 21pc during this period.
Mr Musgrove stated: “The Company continues to show encouraging recovery after a difficult few years. We are now actively looking for opportunities to expand our property.”
Fitness First is trying to recruit new members with its app-based classes, and by adding more weights in their gyms. People are increasingly focusing on strength training.
John Treharne is the founder of The Gym Group. The chain has 230 locations in the UK. He said that his company was dedicating more space for weightlifting, and less for treadmills.
Since the pandemic, the traditional five-day week has been reduced. This has affected many hospitality and leisure businesses who depended on sales from city workers and commuters.
Julian Metcalfe, the boss of Itsu, said that last year working from home effectively made many of his city locations into three-day operations. Pret a Manger focuses on expanding outside of urban areas, in suburban and commuter towns.
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