Planet Fitness is the market leader for low-cost gym memberships. (Photo by Andrew H. Walker/Getty Images for Planet Fitness)
If you pulled on your cross trainers and bounced into a fitness club in the last quarter, there's a good chance it was a Planet Fitness—the high-value, low-price (HVLP) chain with over 1,300 locations.
Using foot traffic analysis pulled from its Foursquare City Guide and Swarm apps, Foursquare found that nearly 25% of gym-goers went to a Planet Fitness in the second quarter of 2017. In other words, of all the people who entered a gym during that time period, a quarter of them walked into a Planet Fitness at some point.
The numbers show the company is a juggernaut of a gym. As of March 31, 2017, Planet Fitness boasted over 10 million members in the U.S., Puerto Rico, Canada and the Dominican Republic. (The International Health, Racquet & Sportsclub Association reports that there were a total of 57.3 million health club members in the U.S. in 2016.) Planet Fitness saw same-store sales increase 10.6% in the first quarter of 2016 over the first quarter of 2017—and they've committed to opening up 1,000 more locations.
At the same time, mid-market gyms—national gyms like 24 Hour Fitness and Snap Fitness as well as regional chains like New York Sports Club and O2 Fitness Club—are feeling the squeeze. "Collectively, these chains lost 5% of their gym visit share in the last year," Foursquare reports.
The good news is that Planet Fitness may actually be bolstering the mid-market gyms, not cannibalizing them.
The Foursquare data don't mean that the people who walked into a Planet Fitness last quarter didn't also visit other health clubs. Rick Caro, president of Management Vision, Inc., a consulting firm specializing in the health and fitness industry, noted that some people use HVLP clubs like Planet Fitness as a "second gym." For example, a gym-goer may have a family membership at a pricier fitness club like 24 Hour Fitness for the childcare and the classes...but also belong to a conveniently located Planet Fitness so she can pop in for a quick go on the elliptical on her way home from work. At only $10 per month on the low end, a Planet Fitness membership typically won't break the bank for dedicated exercisers.
Caro says that part of the reason Planet Fitness is doing so well is that they're opening in smaller communities where there weren't quality facilities before, and the Seeking Alpha website notes that Planet Fitness's target markets are "occasional gym users and those new to fitness." Due to the company's low price and ubiquity, "Planet Fitness is pulling people in the gym who wouldn't ordinarily come in," concludes Jim Thomas, president of Jim Thomas Fitness Management & Consulting.
Bagikan Berita Ini
0 Response to "Planet Fitness's explosive growth is a good thing for competing gyms"
Post a Comment