Hello petermn-ga
Personal fitness is important these days especially as more of us
spend more time at a computer, sit in traffic, and sit watching TV
eating our fast food!
BBC News “Obesity rate triples” 15 Feb 2001
http://news.bbc.co.uk/1/hi/health/1170787.stm
“The number of people who are obese has tripled over the last 20
years, and is still rising say experts.... The report 'Tackling
Obesity In England', showed obesity caused 30,000 premature deaths in
1998 alone.... The NHS spends at least £500m a year on treating
obesity, which could also be costing the economy over £2bn a year.”
Excerpts from CrownSports analysis
Crown Sports PLC July 2001
http://www.crownsportsplc.com/presentation1909/sld005.htm
Quoted Health and Fitness Companies
Fitness First 90 clubs, members = 210,000
Holmes Place 42 clubs, members = 132,000
Esporta 37 clubs, members = 128,000
Crown Sports 36 clubs, members = 69,000
LA Fitness 30 clubs, members = 68,000
Fitness Express 14 clubs, 16,000 members
Top 10 companies account for 45% of the market
Top 30 companies account for 55% of the market
Excluding the top 10 groups, there are over 300 clubs
with more than 1500 members.
Ernst & Young “UK Health & Fitness – in good shape for future growth”
June 2002
http://216.239.39.100/search?q=cache:P1R1IrDqL9kC:www.ey.com/GLOBAL/gcr.nsf/UK/News_Room_-_Press_Release_-_UK_health_and_fitness+%22Health+%26+Fitness+market%22+uk&hl=en&ie=UTF-8
“- Membership of Health Clubs in the UK is well under half that in the
US in percentage terms giving plenty of room for further expansion
- There are also great possibilities in expanding overseas
particularly the rest of Europe
- However changing demographic structures imply a falling off in the
target market of 15–34 year olds requiring a change of focus towards
an older customer
- Evidence from the US market in the early 1990s would imply that in a
downturn health & fitness expenditure remains relatively stable in
comparison with other leisure activities.
- Rationalisation in the market place is inevitable. Currently there
are too many operators with few distinct brands. We may also see
larger US operators entering the UK market.
- As the industry matures the sector will improve spend per customer
head”
KPMG “Health and fitness industry shapes up” KPMG News June 2002
kpmg.co.uk
http://www.kpmg.co.uk/kpmg/uk/press/detail.cfm?pr=1424
“Fierce competition and pressure on profit margins suggest that the
health and fitness market is maturing and that the smaller chains will
become takeover targets from their larger rivals according to a survey
by KPMG.
...Membership fees accounted for 75 per cent of total club revenue in
both 2000 and 2001. Average membership per club has risen 15 per cent
to 2,250 in 2001. The average revenue per member is up 10 per cent
from £417 in 2000 to £460 in 2001. The average revenue per club rose
by 20 per cent suggesting there is still some potential for growth.
Revenue per club is now around £1 million.
Attrition rates, the extent to which members leave or switch clubs,
increased between 2000 and 2001 from 40 per cent to 46 per cent which
may also point to increasing competition in a maturing market. .
Operating profits (before rent and depreciation) fell from 43 per cent
in 2000 to 41 per cent in 2001. Rob Bailey, manager at KPMG’s travel,
leisure and tourism team and author of the survey, said:
“There has been a twenty five per cent increase in the number of clubs
between 1996 and 2001.”
‘Private Health and Fitness Sector Trading Performance 2002’ PDF
http://www.kpmg.co.uk/kpmg/uk/image/healthfitness.pdf
Of club surveyed one third opened in the past two years
3% of clubs established before 1980
20% of clubs established 1980-89
44% of clubs established 1990-1999
33% of clubs established after 2000
“TENURE
74 percent of clubs were operated on a leasehold basis, with the
remainder being
freehold properties. The majority of leasehold agreements had a length
of between
15 and 25 years (64 percent of sample).
Type of Club
The sample is split roughly 50:50 between stand-alone clubs and clubs
that
are part of a wider facility such as a hotel, a retail centre or a
leisure facility.
The average size of club in the sample was 26,835 sq. ft (based on
total indoor
area), with a range of 4,500 sq. ft to 122,600 sq. ft. The average
masks a wide
range of club sizes, ranging from relatively small hotel-based clubs
(between
5,000 and 10,000 sq. ft, including a swimming pool in most instances)
to clubs
with a wider range of facilities and services (such as those clubs
with racquet
sport facilities) which in some cases are in excess of 100,000 sq. ft.
MEMBERSHIP
The average capacity of the sample of clubs is 2,927, with a range of
600 to 8,000.
The average membership per club was 1,957 in 2000 and 2,252 in 2001.
Relating the average club capacity to membership levels indicates an
average of 13.2 sq. ft per
member in 2000. The range was 6.2 sq ft to 19.9 sq ft.
Membership Capacity and Actual Membership Levels
Average capacity 2,927 actual 2001 2,252 actual 2000 1,957
Minimum capacity 600 actual 2001 407 actual 2000 421
Maximum capacity 8,000 actual 7,373 actual 2000 7,528
REPORTED ATTRITION RATES
average 2001 - 46%, 2000 - 40%
maximum 2001- 87%, 2000 - 89%
Guests
Average 2001 - 4,528, 2000 - 5,050, 1999 - 7,250
Average Members/Club 2001 - 4,528, 2000 - 1,957
Average Guests/Member 2001 - 2.0, 2000 - 2.5,
REVENUE MIX
2001: 76.2% Membership fees, 4.9% Joining fees, 10.1% Food and
beverage, 1.3% retail, 1.5% guest fees, 7% other.
2000: 75.7% Membership fees, 4.3% Joining fees, 10.3% Food and
beverage, 1.4% retail, 1.0% guest fees, 6.6% other
1999: 70.9% Joining fees, 4.8% Membership fees, 13.6% Food and
beverage, 3% retail, 1.3% guest fees, 6.4% other
Revenue per Member
Weighted average 2001 - £460, 2000 - £417
Minimum 2001 - £175, 2000 - £202
Maximum 2001 - £851, 2000 - £753
Revenue per Club
Weighted Average 2001 - £993,000, 2000 - £828,000, 1999 - £878,000
Minimum 2001 - £154,000, 2000 - £34,000, 1999 - £12,000
Maximum 2001 - £3,802,000, 2000 - £3,191,000, 1999 - £3,816,000
BBC News “Mind tricks of gym membership” 2 Jan 2002
http://news.bbc.co.uk/1/hi/uk/1735675.stm
“The health and fitness market has grown from £682m in 1996 to an
estimated £1.6bn in 2001.”
“The Global Health & Fitness Club Market 2002” PDF
http://www.diagonalreports.com/pdfs/hcpr.pdf
Hunters PLC PDF
http://www.shorecap.co.uk/pdfs/hunters.pdf
“Extracts from Mintel Report 1999:
- 57% forecast growth in the UK health and fitness market in real
terms
from 1999 to 2003
- Health and fitness club members forecast to grow as a percentage of
the UK adult population from 5.1% in 1999 to 7.9% in 2003
Useful Link:
Market research document from AMA Research @£545
“The UK Fitness Equipment Market Report 2001”
http://www.amaresearch.co.uk/FitnessEquipment01.html
Search Strategy:
"UK Health & Fitness market"
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22UK+Health+%26+Fitness+market%22
"Health & Fitness market" uk
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22Health+%26+Fitness+market%22+uk
"Health and Fitness market" united kingdom
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22Health+and+Fitness+market%22+united+kingdom&btnG=Google+Search
"Health and Fitness market" uk
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=%22Health+and+Fitness+market%22+uk
I hope that helps, if you need clarification of the answer, please
ask.
kind regards
lot-ga |
