The Gym Group: Brits ditch the pennies and the £s as more fitness fanatics seek cheaper gym membership
The Gym Group today said it has continued to win over customers in the face of the UK’s cost-of-living crisis as Brits flocked to the low-cost gym in seeking out better “value for money”.
The low-cost gym owner said it had increased its membership numbers by 14.3 per cent over the past year, to 821,000, compared to a total of 718,000 in 2021.
The uptick saw The Gym Group’s revenues increase 63.1 per cent to £172.9m, the London listed company said in a trading update.
The Gym Group’s chair John Treharne said: “It is clear that even with cost-of-living pressures, many consumers regard gym membership as essential, and they are ever more focused on receiving value for money.”
The fitness club operator said it generated average revenues of £17.82 per customer each month in the first half of 2022 and £18.30 in the second half of the year.
The 24/7 gym company’s higher revenues came after the London firm opened 28 new gyms throughout the year, marking the highest number of openings in a single year since its launch in 2007. The Gym Group now operates 229 gyms throughout the UK.
The firm however said it plans to take a “more measured approach” to opening new gyms this year, in the face of soaring energy bills and a “difficult macro-economic environment”.
The Gym Group said it expects its energy bills to increase by around £10m this year, even as it remains 96 per cent hedged for energy costs.
The company also announced its chief executive Richard Darwin will be stepping down after seven years at the firm. Under Darwin, The Gym Group opened 166 new gyms, boosting its site numbers from 63 to 229.
“It has been an honour to help The Gym Group grow into a nationally recognised presence in affordable fitness over the last 7 years, first as CFO and then as CEO,” Darwin said.
“I am extremely proud to have navigated the business through the pandemic, developed the brand and put in place a first-class management team with the capability to take on this next phase of growth.”
“For me this is the right time to step down; TGG is a great business with enormous potential.”