If you pulled on your cross trainers and bounced into a fitness club in the last quarter, there’s a high probability it was a Planet Fitness-the high-value, low-price (HVLP) chain with more than 1,300 locations.
Using foot traffic analysis pulled looking at the Foursquare City Guide and Swarm apps, Foursquare discovered that nearly 25% of gym-goers went along to a Planet Fitness inside the second quarter of 2017. In other words, of all the people who entered a gym in that time period, a quarter of them walked into a Planet Fitness at some time.
The numbers show the business is really a juggernaut of any gym. As of March 31, 2017, https://www.storeholidayhours.org/planet-fitness-holiday-hours-open-closed-today/ boasted over ten million members in the U.S., Puerto Rico, Canada and the Dominican Republic. (The International Health, Racquet & Sportsclub Association reports there were a total of 57.3 million health club members inside the United states in 2016.) Planet Fitness saw same-store sales increase 11.1% within the first quarter of 2017-and they’ve dedicated to opening one thousand more locations.
At the same time, mid-market gyms-national gyms like 24 Hour Fitness and Snap Fitness as well as regional chains like Ny Sports Club and O2 Fitness Club-feel the squeeze. “Collectively, these chains lost 5% of their gym visit share during the last year,” Foursquare reports. The great thing is that Planet Fitness may actually be bolstering the mid-market gyms, not cannibalizing them.
The Foursquare data don’t mean that those 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 focusing on the physical fitness industry, noted that some people use HVLP clubs like Planet Fitness as being a “second gym.” For instance, a gym-goer could have a family membership with a pricier fitness club for the childcare and the classes…but also belong to a conveniently located Planet Fitness so she will pop in for a quick go on the elliptical on her way home from work. At only $10 each month on the low end, a Planet Fitness membership typically won’t break the bank for dedicated exercisers.
Caro states 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 investing arenas are “occasional gym users and those a new comer to fitness.” As a result of company’s affordable price and ubiquity, “Planet Fitness is pulling folks tfjmzj gym who wouldn’t ordinarily are available in,” concludes Jim Thomas, president of Jim Thomas Fitness Management & Consulting.
“That’s a fantastic situation for all if they look at it right,” he adds. After they start visiting a low-priced gym like Planet Fitness and getting results, some members move up to higher-priced gyms to make the most of amenities like yoga classes, fitness consultations, and weight-loss challenges. (Plus they may keep their Planet Fitness membership also if Caro’s “second gym” statement is correct.)