“The Gym Group achieves a return of 31p for every pound it invests”
Health and fitness can be a great business to be in – especially at this time of year. Many people are trying to lose weight and get fitter. Sadly for the health and fitness industry, this resolve tends not to last. Around mid-January, New Year’s resolutions start slipping.
According to IHRSA, the Global Health and Fitness Association, 4% of people who sign up for a gym at the start of each year have quit by the end of January; 14% have left by February and 50% have disappeared after six months.
But if a gym can convince a customer to stay, the returns can be impressive. IHRSA’s research shows that the average member stays for at least 4.7 years. So despite the tendency for gym members to drift away, in many respects gyms and health-club operators have an excellent business model.
Gyms cost a lot to construct, but are relatively
