If you pulled on your cross trainers and bounced in to a fitness club within the last quarter, there is a high probability it was a Planet Fitness-the high-value, low-price (HVLP) chain with over 1,300 locations.
Using foot traffic analysis pulled looking at the Foursquare City Guide and Swarm apps, Foursquare found that nearly 25% of gym-goers went to a Planet Fitness within the second quarter of 2017. Quite simply, of all the those who entered a gym in that time period, a quarter of them walked right into a Planet Fitness sooner or later.
The numbers show the company is a juggernaut of any gym. At the time of March 31, 2017, storeholidayhours.org boasted over 10 million members within the Usa, Puerto Rico, Canada as well as the Dominican Republic. (The International Health, Racquet & Sportsclub Association reports that there were an overall total of 57.3 million health club members in the U.S. in 2016.) Planet Fitness saw same-store sales increase 11.1% inside the first quarter of 2017-and they’ve dedicated to opening up one thousand more locations.
Concurrently, mid-market gyms-national gyms like round-the-clock Fitness and Snap Fitness along with regional chains like New York City Sports Club and O2 Fitness Club-feel the squeeze. “Collectively, these chains lost 5% of their gym visit share in the last year,” Foursquare reports. The good news is that Planet Fitness may actually be bolstering the mid-market gyms, not cannibalizing them.
The Foursquare data don’t suggest that those who walked right into a Planet Fitness last quarter didn’t also visit other health clubs. Rick Caro, president of Management Vision, Inc., a consulting firm dedicated to the fitness and health industry, noted that many people use HVLP clubs like Planet Fitness as being a “second gym.” For instance, a gym-goer could have a family membership in a pricier fitness club for your childcare as well as the classes…but also belong to a conveniently located Planet Fitness so she will pop set for a fast go on the elliptical in her way home from work. At only $10 per month on the low end, a Planet Fitness membership typically won’t hurt your wallet for dedicated exercisers.
Caro states that portion of the reason Planet Fitness is performing very well is the fact that they’re opening in smaller communities where there weren’t quality facilities before, and also the Seeking Alpha website notes that Planet Fitness’s target financial markets are “occasional gym users and the ones new to fitness.” Due to the company’s low price and ubiquity, “Planet Fitness is pulling individuals tfjmzj gym who wouldn’t ordinarily can be found in,” concludes Jim Thomas, president of Jim Thomas Fitness Management & Consulting.
“That’s an excellent situation for everyone should they see it right,” he adds. Once they start visiting a low-priced gym like Planet Fitness and obtaining results, some members progress 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 too if Caro’s “second gym” statement is correct.)