Gyms hit with alarming lack of traffic in key January month

Main gyms within the US didn’t expertise the visitors growth final month they sometimes do in January — a tricky begin that doesn’t bode properly for gyms seeking to elevate costs.

Foot visitors final month — sometimes the busiest month of the yr — was flat year-over-year at 10 main US health chains, in keeping with knowledge earlier reported on by Bloomberg.

That’s in sharp distinction to 2023 and 2022, when for the ten golf equipment tracked — together with Planet Health and Equinox — January visits had risen greater than 40% every year.

Price range-friendly Planet Health, seen as a proxy for the trade because it’s the biggest chain, Bloomberg reported, provides roughly 400,000 members in a typical January — about 25% of its 1.7 million yearly sign-ups.

All of the whereas, the chain, which boasts almost 2,500 golf equipment nationwide, is on monitor for its second-worst quarterly gross sales development for the reason that pandemic, in 2021, in keeping with Bloomberg.

Xponential Health — which owns standard boutique health studios like CycleBar, Pure Barre and boxing membership Rumble — can also be anticipated to report its slowest income development for the primary quarter since going public in 2021, Bloomberg reported.

Foot visitors at 10 main US gyms final month — together with luxurious providing Equinox and budget-friendly Planet Health — was flat year-over-year. Sometimes, January visits spike roughly 40% every year. UCG/Common Pictures Group by way of Getty Pictures

Over the previous yr, Xponential’s share worth has plummeted greater than 54%, although Xponential’s Chief Monetary Officer John Meloun instructed buyers on its 2023 earnings name in November that client foot visitors at its greater than 3,000 studios “has grown in comparison with the yr prior.”

Analysts mentioned that makes an attempt to boost membership costs have harm membership development.

Planet Health, for instance, mulled elevating its $10-a-month traditional membership worth late final yr.

Interim CEO Craig Benson instructed analysts that the chain was contemplating the advance as customers get used to inflated costs, although the chain by no means adopted by way of with the rise — which might have been Planet Health’ first worth hike in 30 years.

Benson has assumed the function of CEO ever since Chris Rondeau abruptly left the company after a 10-year stint on the helm.

In a typical January, Planet Fitness -- the largest gym chain -- adds roughly 400,000 new members.
In a typical January, Planet Health — the biggest gymnasium chain — provides roughly 400,000 new members. UCG/Common Pictures Group by way of Getty Pictures

Stifel analyst Chris O’Cull mentioned in a Monday notice obtained by Bloomberg that Planet Fittness’ lack of ability to advance its costs alerts that it might be reliant on promotional gives if it needs to drive development.

“A $10 worth level is de facto the place buyers and the trade is gravitating towards,” TD Cowen’s Rakhlenko mentioned, per Bloomberg.

Planet Health’ share worth has tumbled greater than 15% over the previous 12 months.

The Publish has sought remark from Planet Health and Xponential.

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