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Fitness Industry Consolidation More Talk Than Action

by Daniel on January 25th, 2012

Of the approximately 50,000 recreation facilities, only 17,000 are commercial clubs. And while there has been much talk about consolidation, no more than 1 to2 percent of commercial clubs are sold to third parties in a year.

In fact, the largest club companies have been opening up more new facilities than acquiring existing ones.

This is partly due to available landlord or developer financial inducements, attractive rents, available debt.

The focus on a defined physical footprint, and a tendency to create similar facilities with company names.

If a club is acquired, the challenges include less than ideal locations and physical plants, incompatible pricing or membership concepts, inexperienced or unqualified staff and, sometimes, a tarnished image.

From → Fitness

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