If you pulled on your cross trainers and bounced in to a fitness club during the last quarter, there’s a good chance it was a Planet Fitness-the high-value, low-price (HVLP) chain with well over 1,300 locations.
Using foot traffic analysis pulled from the Foursquare City Guide and Swarm apps, Foursquare learned that nearly 25% of gym-goers went along to a Planet Fitness inside the second quarter of 2017. In other words, of all of the those who entered a gym during that time period, a quarter of those walked in to a Planet Fitness at some point.
The numbers show the business is actually a juggernaut of any gym. Since March 31, 2017, Planet Fitness hours boasted over ten million members inside the Usa, Puerto Rico, Canada as well as 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 11.1% in the first quarter of 2017-and they’ve focused on opening one thousand more locations.
Simultaneously, mid-market gyms-national gyms like round-the-clock Fitness and Snap Fitness along with regional chains like New York Sports Club and O2 Fitness Club-feel the squeeze. “Collectively, these chains lost 5% with 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 suggest 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 focusing on the physical fitness industry, noted that some individuals use HVLP clubs like Planet Fitness as a “second gym.” As an example, a gym-goer may have a family membership with a pricier fitness club for your childcare and the classes…but additionally belong to a conveniently located Planet Fitness so she could pop set for a fast go on the elliptical on the way home from work. At just $10 each month on the low end, a Planet Fitness membership typically won’t break the bank for dedicated exercisers.
Caro states that area of the reason Planet Fitness does very well is the fact that they’re opening in smaller communities and then there weren’t quality facilities before, as well as the Seeking Alpha website notes that Planet Fitness’s target financial markets are “occasional gym users and the ones a new comer to fitness.” Because of the company’s low cost and ubiquity, “Planet Fitness is pulling folks tfjmzj gym who wouldn’t ordinarily come in,” concludes Jim Thomas, president of Jim Thomas Fitness Management & Consulting.
“That’s an excellent situation for everyone if they look at it right,” he adds. When they start going to a low-priced gym like Planet Fitness and having results, some members progress up to higher-priced gyms to make the most of amenities like yoga classes, fitness consultations, and weight-loss challenges. (And they also may keep their Planet Fitness membership as well if Caro’s “second gym” statement is correct.)