Fitness chains flex their financial muscle as more Americans hit gyms | – #Fitness #chains #flex #financial #muscle #Americans #hit #gyms
March 22 (Reuters) – Even as inflation squeezes other consumer-oriented sectors, tighter budgets may not be a constraint for Americans looking to get back in shape, keeping gym operators financially fit.
Some major players in the fitness sector have pushed the envelope on membership rates following the pandemic scare, helping boost profits when most other industries are under stress from a wary consumer.
Kearney Consumer Institute Manager Tanya Moryoussef said, “Personal fitness is something consumers are missing out on during the pandemic. Consumers feel a strong connection to gym communities, which partly explains why spending in this sector is strong despite inflation,” he said. Kearney consulting firm.
Boutique gym group Xponential Fitness Inc ( XPOF.N ) added nearly 15,000 new members in the fourth quarter and january has grown to over 600,000 members as of 2019, a more than 70% increase from pre-pandemic levels in 2019.
Bigger rival Planet Fitness Inc ( PLNT.N ) added 400,000 members in the fourth quarter, bringing its total to about 17 million in 2022.
Reuters Graphics Reuters Graphics
“Today we have more members than ever, and they’re paying more than ever,” Xponential CEO Anthony Geisler told Reuters in an interview.
USAof 20more than national and visits to fitness chains increased 30.6% over 2019 levels during the week beginning Feb. 27, according to data from location analytics firm Placer.ai, which covers thousands of gym locations in the regional brand.
His data is also 2020showed a weekly increase of 17.2% in visits for the same period compared to last year.
“People who are working out are working out a little bit more than they did in the past … So even with the recession talks and layoffs that you’re seeing, the cancellations are a little bit better,” Planet Fitness CEO Chris Rondeau said recently at a JPMorgan conference call. week.
Gen-Z’s focus on fitness after being locked down during the COVID-19 crisis is also key driver was.
A Planet Fitness executive said Gen Z represents 25% of the company’s total membership.
“We’re seeing very positive signs of consumer interest in leading healthy and active lifestyles, particularly among younger demographics,” said Baird analyst Jonathan Komp.
What Gen-Z generally consumes food and more knowledgeable about nutrition and activities they should engage in to be physically and mentally healthier, Komp added.
Reporting by Deborah Sophia in Bengaluru; Edited by Anil D’Silva
Our standards: Thomson Reuters Trust Principles.
2023-03-24 14:27:48
Source – reuters
Translation“24 HOURS”