Nov. 9, 2016 Issue N°18

New chief orders shake-up at FNE# 18 eebok is to undergo size- Rorsted was particularly Some of the comments sug- able cuts in staff and unimpressed that Reebok stores, in the latest mea- failed to raise its sales in North You’re reading Fitness News Europe, the independent Rsures to improve the gestedbrand if that the results do would not im be- business news publication for preparedprove, as some to sell investors the fitness have executives in the international - Americagrowth in for the theregion last in three the fitness industry. With an brand’spany will profit move margins. out of its As cam part- years.third quarter, Reebok but did with return a sales to - online portal and a bi-monthly ofpus the in changes,Canton, near the fitnessBoston, com and beenness, advocatingwhich should for leadsome to time. 150 newsletter, Fitness News Europe Perhaps least acceptable for jobThe losses cutbacks among in thethe U.S. brand’s busi provides reliable business news The cuts do not affect the Eu- increaseRorsted, ofthe just Reebok 2%. brand’s and often exclusive analysis on intoropean the city.structure for Reebok, meant to tackle wider issues the fast-moving fitness market. which has delivered ample ex- 950 employees in Canton, are Check out fitnessnewseurope. profit margin remains way structure and the way it oper- com for further information about the publication, to register brand managed a global sales with the fitness brand’s cost for a free trial and obtain your pansion so far this year. The subscription at a special launch for the third quarter, with an ates. rate. rise of 3.6% to €493 million willRorsted move explainedto a location that that 650 ofhas Reebok’syet to be found U.S. in employees a vibrant increase of 7.2% in constant- currencies.rope area, which The turnoverbasically cov was- have been offered relocation CONTENTS upers byEurope 15% inwith the the Western exception Eu areato Portland of Boston. – almost Another literally 150 Shake-up at Reebok.....p1-4 of Russia and the former CIS at the other end of the country, Berlin clubs snapped up..1-6 Cybex weaker than But Kasper Rorsted, who - projected...... p2 countries.took over at the beginning of below the level of the Adidas in Oregon, where the Adidas Flat forecast for Octane...p2 October as chief executive of brand. The gross profit for Ree Group has its North American Technogym claims market bok reached 36.7% in the third head office. These changes share gains...... p3 owner, found that the growth quarter,“It’s time compared to get backwith 45.6%to the come at a cost of about €20 Gym pass groups target the Adidas Group, Reebok’s forgym Adidas. and redouble our efforts million.plan is to accelerate the closure Swiss market...... p5 on Reebok,” Rorsted said in a Another major part of the ClassPass scraps Unlimited wasevery lagging member behind has Adidasto contrib and- - plan...... p5 manyute to rivals. the Assuccess, in team said sports, the ofReebok U.S. stores.factory Theoutlets new would chief Basic-Fit above openings Danish handball enthusiast in conference call. He was previ executivebe shuttered said by thatthe end about of the 20 target...... p6 a conference call with analysts ouslycompany, chief where executive he led at Henkel,a turn- Vivafit goes Saudi...... p5 the German consumer goods Continued on page 4.... year. Technogym last week. around. Other news Q1 2016 (€ 000, %) Club operators snapping up Berlin gyms Adidas (px), Clever Fit (p7), olmes Place is taking for women with a pool on the - Fit20 (p7), Fitbit (p3), Garmin over at least one of the Bismarckallee, in the Char- Q1 2016 Change (p3), Puma (p4), Skechers (p4), Place clubs in Germany are sit Reebok (p4), UK Active (p7) Sales 115,574 + 11.2% H Berlin, as the receiver- open next week and turn into a uatedCandy infacilities Berlin. asThe an group opportu was- ship ofHard the company Candy clubsthat was in lottenburg district. It will re- eyeingnity to threemove of toward the former its target Hard Italy 10,875 +12.8% - The receiver is in talks for the of building a national premium Europe many opens up prominent lo- mixedsale of clubtwo Superwomenearly next year. clubs, 62,022 +14.5% (excl. Italy) running the concept in Ger and some of the landlords have - been talking directly with in- chainerally inunderserved Germany. with regard North America 10,484 +19.9% cationsCandy gyms in the and country’s another capital. four “The German market is gen Fitness News Europe is Asia Pacific 15,758 -5.6% Jopp AG, which ran nine Hard Management, a company set is room for a national player published by Zelus (France) temporary insolvency in June, terestedup in September parties. by Clays two Sportsinves- toin thethis premium category,” market. said DoronThere Editor: Barbara Smit Latin America 5,852 +58.7% [email protected] Superwomen facilities, filed for tors in real estate, is apparently Dickman, general manager for @ All rights reserved. MEIA (*) 10,583 -3.8% [email protected] as previously reported. Full- - deputy chief executive of the The information published in this newsletter fledged proceedings started in opening another fitness club at Holmes Place in Germany and cannot be copied or distributed electronically September. the former Hard Candy loca Continued on page 6.... Holmes Place has taken over tion on the Clayallee. Holmes Place Group. without the publisher’s written permission. the former Hard Candy club Five out of the eleven Holmes FITNESS NEWS Europe 1 Top Gear Cybex weaker than projected he acquisition of Cy- previous estimate primarily bex International has division at Brunswick Corpora- relates to the acceleration of yielded lower sales and The turnover of the fitness tothat double the shoppingthe size of spree its fitness isn’t our cost reduction and facil- T it has proved costlier divisionover just yet, by 2020.and some It appearssources ity integration activities,” said than anticipated so far for the tion was up by 20% to $237.6 predict another buy before the - millioncurrencies, for with the about quarter. 17 per It- The adjusted operating spires from the group’s third movedcentage up points by 21% of that in constantincrease Schwabero. owner of Life Fitness, it tran end of the year. Mark Schwabero, chief ex- Without acquisitions and in margin of the fitness division quarterecutive earnings.of Brunswick Corpo- constant currencies, the fitness waswhich down was attributed by 0.7 percentage to unfa- ration, said in a conference division’s sales were up by 4% pointsvourable to 13.3%changes for in the the quarter, sales call that “sales of Cybex prod- for the quarter. This included an mix and increased investments ucts have been unfavourably organic sales increase of 5% in affected by some changes in Europe, up 26% including the Schwabero said that Cybex distribution and decreasing acquisitions and 19% in reported tocontributed push the group’smodestly expansion. to the terms. European sales accounted - Yet still, Brunswick remains forExcluding about 20% theof the acquisitions Life Fitness chase accounting adjustments demandupbeat about for certain the prospects products.” of division’sand in salesconstant last year. currencies, operating profit, including pur - of $1.4 million in the quarter. theIt points fitness to market robust and demand the out in salesrest of were the world, flat in with the U.S. growth and For the first three quarters of- come of its latest acquisitions. Elevation Series Photo: Life Fitness theyin all movedregions up other by 10% than inLatin the thisstant year, currencies the fitness and excluding division’s favourable trends in the re- turnover was up by 5% in con- thehabilitation fitness cluband active market aging and coming from the latest acqui- erating margin was down by category, along with increased sitions, Cybex and the Indoor America.clubs and hotels, The demand while sales in thede- acquisitions. Its adjusted op participation in group exercise U.S.clined chiefly in other came channels, from fitness from Brunswick bought Cybex for 1.8The percentage Brunswick points group to saw 12%, its - Cycling Group (ICG). chiefly due to Cybex. activities.cent Cybex acquisition have then said that the group’s turn- retaildivision to governmentincurred restructuring orders. million for the quarter, with trailed“While our revenues initial expectations, of our re $195 million in January and- andFurthermore, integration the of Lifecharges Fitness of sales rise by 10% to $1,093.0 we are continuing to make out- - currencies and without acqui- standing progress integrating over reached about $169 mil- an increase of 6% in constant lionplier in of 2015. indoor In Julycycling it snapped equip- $2.4 million in the quarter re- segment and remain on plan up ICG, the German-based sup latingwick isto acquisitions,projecting that and such$8.8 sitions.Brunswick Its net is profitprojecting firmed sales up thisto achieve business our into near-term our fitness and - million so far this year. Bruns by 13% to $85.4 million. long-term earnings objec- ment with sales of about €37 half of it from acquisitions,and tives for this acquisition,” said millionbeen on inthe 2015, acquisition at an trail undis in costsincrease will in rise the torestructuring about $12 growthslight improvements of about 10% in for gross the year, and closedthe last price.year, as Life part Fitness of its goal has millionand integration for the costs full year. from “The our SchwaberoOctane in a statement. sales to stagnate foroperating the profit margins.year - and sharply increased sales to re- growth,” as he said in a conference call he acquisition of Octane Fitness- tion the company for future profitable significantly, to ensure a profitable re- T turn on media investment. The media milliontailers for the enabled third quarter,Nautilus although Inc. to re it with analysts. spendNautilus alone went was reducedon to launch by 13.7% new com cre- sufferedport a sharpa 14.3% decline rise in directsales to sales $80.8 to Octane Fitness raised its turnover at pared with the same quarter last year. - double-digitweaker in the ratespecialty to $16.2 channel million and Nau for- tober, and saw some improvement in thetilus quarter. warned However,that the comparison the first half would was ative for its Bowflex Max Trainer in Oc consumers. be tough in the last quarter, because Oc- Sales to retailers shot up by 79.6%- tane had two big launches around this sales.equipment The group’s coming management into the market is upbeat next to $46.2 million for the quarter. The about the Hybrid Velocity Training (HVT) U.S.strong group double-digit behind organic the Nautilus, sales expan Bow- The Nautilus group’s operating income flex,sion Schwinnfor its cardio and Universal and strength brands equip saw- timethe year, last saidyear. Sid The Nayar, brand’s the sales group’s are chiefthus year, among other products. ment ranges in the retail market, which projected to be flat or slightly down for - The rise in the Nautilus group’s retail for the quarter jumped by 28.5% to $8.2- financialsales for theofficer. quarter more than made up million. It more than halved in the direct wasto acquire amplified the byspecialist the acquisition in zero-impact of Oc businessBruce Cazenave, but nearly the tripled group’s to $9.2chief milex- tane Fitness. Nautilus paid $115 million lionecutive, in the said retail that business. accretive earnings foruncertainties a decline ofand 21.4% distraction to $33.7 ahead million of from Octane should be lower than ex- fitness equipment, which brought in in its direct business. It was affected by pected this year, due to weakness in one salesat Nautilus, of $65 millionregarded in 2015.the performance asBill a “validation McMahon, of chief our strategy operating to officerdiver- thethus U.S. swiftly presidential decided elections,to curtail asits well media as incurred extra integration expense, but sify our revenue streams to better posi- weakspending response and lead to marketing.generation Nautilusactivity of its distribution channels. The group 2 FITNESS NEWS Europe Nautilus said it was progressing well. Top Gear Technogym claims market share gains echnogym boasts that it has gained - market share from its direct com- - petitors so far this year and again riomakes Alessandri, it less Technogym’srelevant for chiefTechnogym executive. to thepatible Unity apps 3.0 interfaceavailable thaton the provides Technogym oper T rapidlyThe rapid make expansion an acquisition in the U.S.in the probably coun- ators with access to many Android-com - immersed in changing landscapes or join raised its sales at an unspecified ian company said that no such transaction app store. That enables the users to get double-digit rate in the third quarter. try, as has long been speculated. The Ital The Italian group’s sales for the first nine monthsin constant of this currencies, year amounted while it toestimates €385.1 was in the works. million, up by 9.4% in euros and by 11.2% millionTechnogym’s for the ninesales months, amplified while by 7.8% Italian in Europe outside of Italy, reaching €200.2 that the entire fitness equipment market- expandedsults obtained by 4%. in the United States, both in sales advanced by 15.8%. terms“We areof sales particularly and positioning satisfied with within the there theThe region focus for on the North nine America months, has compared helped most prestigious clubs, hotels, companies the group to raise its turnover by 28.9% in and medical centers of the country,” said Ne- with 10.6% for Asia Pacific and 5.4% in Technogym Latin America. However, Technogym’s Q1-Q3 2016 (€ m, %) salesattributed retreated to “the by unstable 6.0% in geo-political the Middle East, India and Africa, which the company Q1-Q3 The most robust increase in demand Change 2016 situation of some countries in the region.” Photo: Technogym

Sales 385.1 + 9.4% came from field sales, which were up on the Climb Excite are automatically Italy 38.5 +15.8% by 11.5% to €270.9 million for the nine months, compared with gains of 6.1% for their friends’ workout. The data collected- Europe ness cloud, to be checked out on the Unity 200.2 +7.8% wholesalingto support sales and 7.3%in the for quarters retailing. ahead is (excl. Italy) Among the products that are meant saved to the user’s profile on the Mywell Separately, Technogym has already North America 41.3 +28.9% climber that is meant to provide adequate the Climb Excite, a space-efficient stair 3.0started console planning or on personalanother devices.edition of the Asia Pacific 57.0 +10.6% distinctive aspect of the product is the pat- Let’s Move campaign, to be held from - Latin America 13.8 +5.4% workoutsent-pending for Splitpeople Step of alltechnology, fitness levels. which A makes it easy for users of any height to els and motivation for club members, the MEIA (*) 34.3 - 6.0% March 13 to 31. Meant to raise activity lev Part of the Excite cardio equipment Source: Technogym (*) Middle East, India and Africa steprange, in. the Climb Excite is equipped with 2016 edition involved 513 facilities and over 220,000 participants who burned 170 million calories. Tech Briefs n Fitbit’s shares were pummeled earlier n Garmin reports that sales of its fitness n Wareable reports that the Adidas this month after it predicted that its sales products jumped by 32% to $189.2 million group is working on a tracking wearable would advance by just 2% to 5% for the cru- for the third quarter, driven by wrist heart- (at least temporarily) called Chameleon cial fourth quarter. “We continue to grow and rate wearable devices and cycling. The and a matching new health and activ- are profitable, however not at the pace pre- group started shipping the Forerunner 35, ity app, All Day. The publication was viously expected,” said James Park, Fitbit’s which enabled Garmin to sell its Elevate told that the products are set to launch co-founder and chief executive, in a state- wrist-based heart rate technology as part in 2017. It appears that the projected ment. The U.S. company’s shares tumbled of an affordable and user-friendly GPS products have relatively basic activ- by more than 30% on the news and have device. The quarter also saw the launch of ity, health and sleep tracking metrics, barely budged since then. Fitbit delivered a the Vivofit Jr, Garmin’s first wearable and without any GPS or heart rate monitoring. sales increase of 23% to $503.8 million for accompanying mobile application designed The Chameleon would thus cater for a the third quarter, with increases of 11% in for children, among other products. The fairly broad group of consumers, who are units and 11% in average selling prices. Its group’s gross margin in the fitness seg- not necessarily into performance sports, turnover moved up by 64% in Europe, which ment increased by 0.7 percentage points leaving more technical training and made up 16% of its sales for the quarter. This to 54.6% and its operating profit margin coaching functions for sports watches. compared with a share of 72% for the United surged by 5.1 percentage points to 23.7%, The Adidas group already moved into the States, where its sales advanced by 33%. entailing a rise of 68% in operating profit. market for wearable tech in 2013 when Fitbit’s turnover rose by just 7% in other The category has been growing consist- it came up with the Smart Run running parts of the Americas and they even tumbled ently since the start of 2016, yielding a watch in partnership with Mio, and then by 45% in Asia Pacific. The group’s profit for sales increase of 26% for the first nine launched the FitSmart tracker one year the three months declined to $45.7 million, months of the year. With strength in later. Last year the German company down from $59.2 million. Fitbit is projecting outdoor, marine and aviation but a 21% spent €220 million on the acquisition of sales of $2.32 billion to $2.345 billion for the decline in sales of auto products, the entire Runtastic, which specialises in apps for full year, amounting to an increase of 25% Garmin group’s turnover was up by 6% to runners. The Adidas group declined to to 26%. $722.2 million for the quarter. comment on any such upcoming product. FITNESS NEWS Europe 3 Soft Side New chief demands Reebok results ...continued on page 1 may thus have been easier for Rorsted to take more radical measures at Reebok - The move of group functions from Bos- - The entire Adidas group’s sales inflated ton to Portland means that the joint op- companied with efforts to move Reebok bybrand 13.8% continued to €5,413 in millionthe quarter for the with quar a in North America. The cuts should be ac ter. The latest growth spurt of the Adidas- Rorsted made it clear that he supports erating model for the Adidas and Reebok- towardReebok’s higher marketing price points.investments in the sales increase of 19.5% in constant cur brands will no longer apply for the U.S. rencies. It included a sharp rise in the U.S. market.longer reports Chris Waldeck, into Mark the King, general president man last month between Reebok and Emily market, where the Adidas brand doubled ager for Reebok in North America, no fitness market. He referred to the tie-up itsRorsted footwear also market emphasised share to that 10% he in fully the instead reports to Matt O’Toole, Reebok’s yearsupported until September. Creating the New, the strategy of the Adidas group for the region, and Skye,in October the Australian that Skye woman will take behind part thein put that has fueled the expansion of the Rorsted described this switch as a way F.I.Tinitiatives fitness with workout. the brand Reebok “to announced stimulate president.to form a focused Reebok team, while meaningful conversations on body posi- added that improvements could be made - Adidas group in the last two years, but

avoidingshare with any substantial distraction over-investment for the Adi in terms of discipline. das team, which has been regaining U.S. The entire Adidas group’s gross profit- also be regarded as a way to make Ree- margintributed slipped to exchange by 0.9 percentagerate changes, points but in the last two years. But the move could to 47.6% for the quarter, which was at- The new chief executive said that the bokgroup easier had to committed divest. to restructuring operatingincome from margin continuing dipped operationsby just 0.2 perwas measures, thus the sale wasn’t on the centage points to 10.2%. The group’s net agenda, but the question may arise again upat Reebok, by 14.7% the to group€387 million.expects to suffer a going to have eternal patience for seeing Apart from the cost of the measures if the measures do not pay off. “We’re not Emily Skye. Photo: Reebok tivity”, and the two will work together on loss from its sale of TaylorMade, Adams results,” said Rorsted. Golfgroup and remains , on track its golf to equipmentdeliver its a meansReebok to was reinforce acquired its business by the Adidasin the and apparel brands. Yet still, the Adidas- group under a deal agreed in 2005 as alast footwear month rangewhen Reebokfor next teamedyear. up with its are projected to reach the upper end Another such investment came about sales and profit targets this year. Prof- U.S. market (which hasn’t exactly worked out). The buy was sealed by Paul Fireman Gigi Hadid. The influential fashion model ofraised a scale its setfinancial at €975 outlook million four to €1 times bil and , who departed at the advocates fitness and she has become an lion for the year. The group previously end of September after fifteen years as endorsee of Reebok’s Be More Human chief executive of the Adidas group. It campaign.Soft Briefs this year. n Puma is continuing to bounce back with n Another sports brand that has been n Aside from the strategic adjustments a comparable sales increase of 10.8% for taking advantage of the growth in fitness detailed above, Reebok has hired Thomas the third quarter, as reported by Kering, the apparel and footwear sales, Skechers Steinbruck as creative director. He is an French luxury group that owns the German saw its turnover climb by 10.1% to $942.4 influential, German-American design- sports brand. While Puma is to provide fur- million for the third quarter. While the er who previously held senior creative ther details on its performance on Thursday, group’s U.S. wholesale business slipped by functions at Porsche Design, Elie Saab Kering said that the sales increase amoun- 3.4%, its international wholesale turnover and Kenneth Cole. Steinbruck has been ted to 8.3% to €994.1 million in reported surged by 18.3%. It now amounts to 40.1% assigned to supervise creative direction terms. The rise was driven by a 17% hike of Skechers’ turnover, and the interna- for Reebok’s footwear and apparel ranges. in footwear sales, with robust demand tional share even reaches 47.9% including The fitness company says that Steinbruck for such products as the Ignite, Fierce and retail sales. Skechers has been capitalising is a fitness enthusiast, who regularly Fenty, supported by the brand’s partner- on the growing international demand by takes part in yoga and CrossFit, as well ship with Rihanna. This compares with an turning several distribution agreements as cycling and swimming. Steinbruck said increase of 10% for apparel sales. Puma into joint ventures or subsidiaries. Such in a statement that he wanted to “help achieved double-digit sales growth in all a transition has been finalised in Israel continue to grow Reebok into a global geographic areas, other than Japan. It per- and is underway in South Korea. Skechers’ leader in fitness and to focus on areas I’m formed strongly in Europe and the Americas global retail business amplified by 16.0% passionate about, such as sustainability and reported sustained growth in China. for the quarter. It ended up with 556 com- and creating products for women that are For the first nine months of this year, sales pany-owned Skechers retail stores, 150 of at once fashionable and functional.” The were up by 6.4% to €2,680.5 million, with them in international markets. The group’s creative director’s resume suggests that he an increase of 10.6% in comparable terms. gross margin inched up by 0.4 percentage is a versatile designer, as he worked across Puma appears to be increasingly reaping points to 45.6% and its earnings from Europe and the United States, for high- the benefits of the strategic changes and operations advanced by 8.1% to $103.4 end fashion brands and more mainstream product overhaul launched three years ago million for the quarter. Sales for the first labels. Steinbruck was assistant professor with the arrival of Bjørn Gulden as chief nine months of this year surged by 15.4% for fashion design at Parsons School of executive. to $2,799.0 million. Design in New York. 4 FITNESS NEWS Europe Gyms Gym pass groups target Swiss clubs - - geted by at least two complemen- - wiss fitness clubs have been tar nlikeSwitzerland most other requires providers users toof haveflex The concept is financed by the gyms, S in the last months, both of them U ible gym passes, Gymhopper from whicha great pay selling a membership point, and we fee support to Gymhop them backedtary up with suppliers fresh funding of fitness but with passes di- per.in retaining “They win more new clientsclients, thanbecause usual this be is- will be aable standard to work gym out in membership. any other of Butthe cause they can avoid losing them to chains by downloading the Gymhopper app, they - vergingmyClubs approaches. has moved into Switzerland this Already active in Austria since last year, affiliatedbusiness withgyms Louis for free. Nicholls last year, says orlimits different users’ gymsvisits to with a gym this other flexibility than his of thatSilvan it works Krähenbühl, only with who high-quality, launched inde the- fering,” Krähenbühl explains. Gymhopper year after it obtained financing of more thanMyClubs 1 million got Swissstarted francs in Switzerland (€0.9m), and in - or her own. - ahead of a planned fundraise next year. - pendent gyms. The fitness clubs finance estGymhopper number is inworks the Swisswith moremarket, than where 150 tober it expanded into Zurich, Basel and theThe app, app in isexchange most useful for thefor benefitsgym members of be gyms in Switzerland and Austria. The larg May, in Geneva and Lausanne, and in Oc ing in the network. effectively become the biggest network of - gyms, to add variety to their workouts or Krähenbühl boasts that Gymhopper has Berne. MyClubs users may buy a monthly- to take occasional classes in other affiliated- - pass worth 79 Swiss francs for four work cisely the motive for the two founders to fitness clubs. outsmore or than 179 fourSwiss times francs per for monthunlimited at theac whenestablish then the are business, travelling. as they That lived was near pre He estimates that the potential for Gym cess to the affiliated clubs (although not- Berne but were studying in eastern part of hopper amounts to about 600 gyms for Switzerland alone, with an average of 800 to 900 members. After Austria, the plan is same facility). Another option is a pack - The extra money came from investors Switzerland and had friends in Zurich. to rapidly move ahead in other markets. ageMyClubs of ten passeshas already for 239 become Swiss francs,estab- led by Lukas Püspök, who was already which is valid for two years. “We’re at the very beginning of the en- - tire market, as the trend of flexibilisation- vestors are Omer Rehman, executive - lished in the Austrian market, where is starting to take hold in the fitness in involved in several ventures. Other in- ities are standard gyms, while the others it has about 280 affiliated sports clubs dustry,”its market says share Tobias through Homberger, the exclusivechief ex and 5,000 users. Some 25% of the facil ecutive at myClubs. It has been growing boardalong memberwith Loop at AlpineNew Media, Equity, aand digital Ste fan Häckel, general manager of Vice CEE, are specialist providers such as CrossFit contracts as well as strong brand-building. approach is that, in exchange for compre- boxes and climbing halls. agency from Salzburg. - hensive marketing support, it works with A distinctive aspect of the company’s ableThe myClubs Series Ato funding move into round other of European€4 to €5 exclusive contracts – making it harder for million projected for mid-2017 could en will only move into a market when we are markets,quite certain preferably that we atcould an earlygrow stage.into one “We of potential rivals to break into the market.- MyClubs’ Austrian network currently The exclusivity required by myClubs covers Vienna along with Graz, Linz, Salz the two leading players,” said Homberger. - burg and Innsbruck. The prices are much hopper, since they don’t compete for the lower in Austria, amounting to €39 for a doesend users not prevent– in fact gyms the two from companies using Gym of- monthly pass of four workouts and €99 Photo: myClubs for the unlimited option, or €129 for the Classprepaid card of ten workouts.Pass scraps unlimitedten try to support each plan other. lass Pass has angered some of its £55 or ten at £105, and the options have subscribers by announcing that it Unlimited passes for £110 per month, the been complemented with “add-on packs” was discontinuing its Unlimited partneronly limit studios. being Class that Pass subscribers previously could sold C plan, instead offering packages that not use the same facility more than three thus amounts to a substantial increase for of three classes worth £30. The change Class Pass already faced discontent give“The them truth access is thereto five isor aten fundamental classes per times per month. It has switched entirely peoplefrom some who ofwant its tomembers work out after daily. it raised monthproblem in withthe affiliated the Unlimited gyms. plan,” wrote to Core plans of five classes per month at Payal Kadakia, the group’s chief execu- Some London partners were also disgrun- thetled priceabout for changes its package in the earlier split of this income year. the company paid the gyms for visits between Class Pass and the operators, al- tive,from insubscribers, an open letter. and She the explained assiduity that of though some of these issues have appar- some members meant the costs became Kadakia added in her letter that the of- the plan work for our business,” Kadakia ently been resolved. - unsustainable. “We simply couldn’t make pany is preparing to try out on demand The changes also apply in London, the fervideo, would “out evolve of studio” in other experiences ways. The comlike writes. - group runs and social features that are 1 Rebel is on the ClassPass list in London. only European city where the U.S. com pany currently works, with more than 400 meant to enhance membership.FITNESS NEWS Europe 5 Gyms Clup operators snap up Berlin gyms ...continued on page 1 tunde, who has been appointed as re- -

Dickman said that such coverage would undueinvestigation delays. isA spokesmanongoing, and for the prosJopp - ceiver. The members often had long-term ecutor’s office could not confirm if this contracts paid in advance. taketo six about years 25– but to that 35 clubs would around have to Ger be Martini’s office said that the amount brothersnewspapers could that, not beforebe reached. the temporary many, which could be achieved in five- claimed15,000 creditors, by creditors the largest reached of €33.1them insolvency,It was reported members by were several charged German an - million. The claims were filed by about “environmental contribution” and that done with the required caution in finan Creditors have until the start of De- the group continued to take in long-term cial terms as well as patience to find lo landlords, lendors and lessors. contracts shortly before the lights went cations with a sufficiently large potential likely that few of them, if any, will be ful- of affluent members. This comes on top cember to file their claims, but it appears of the projected development of the EVO- to what extent an insolvency dividend out.begun to review the bookkeeping and is concept (more on this shortly). - filled. “At present it cannot be predicted assessingThe receiver’s civil claims office against said thatthe manag he has- nessAnother market company is Migros that hasZürich been from ex - panding into Germany’s premium fit - ers. This is independent of any investiga Switzerland with its Elements concept. tionfrom by such the aprosecutor’s source may office be used – although for his Fitnessto be up First for salehas quiteas part a fewof the more group’s pre the receiver acknowledges that findings miumdismantling, clubs in which its German has alreadynetwork led – said to - the divestment of its operations in the ownbers, assessment. Berlin has one of the highest rates With about 509,000 health club mem Jürgen and Ralf Jopp obtained an agree- states, as detailed research published by U.K. and Australia. of gym membership among the German - ment with Madonna to run Hard Candy- thenership German with Employers’ Deloitte and Organisation the Deutsche for gymsedly became in Germany apparent and earlier started this opening year Fitness and Health Clubs (DSSV), in part- themwhen init 2013.started Their offering group’s memberships issues report at Holmes Place Bismarckstrasse Photo: Holmes Place much-reduced prices, some trainers com- can be distributed at the end of the pro- Hochschule für Prävention und Gesund plained of not receiving their dues and heitsmanagement (University of Applied not cover any dividend to the insolvency Sciences). - - ceedings. Yet, the current estate would The rate amounted to 14.3% in the city electricitying in a movie was cuttheatre off. in Berlin on Octo- Separately, the general prosecutor’s of- state of Berlin, compared with the Ger About 220 creditors heard at a meet creditors,” theTagespiegel receiver said. last month that man average of 11.6%. The researchers it had started an investigation into the counted 409 fitness clubs in the German berby Torsten 27 that Martinithey are from unlikely Leonhardt to recover Rat- fice told the capital, 35.1% of them independent and their money. The meeting was organised 30.9% part of a chain, while 34.0% were Basic-Fit aboveinsolvency of Jopptarget AG, with allegations for of specialist openings clubs. ust as projected at the time Benelux countries in Septem- banners go up in the northern changed for the full year, calling of its initial public offering ber, which affected membership part of the country in the last year, and increasingly moving J accelerating its gym open- in sales stems from the larger for sales to reach around €260 in June, Basic-Fit has been growthnumber inof thatmembers month. along The with rise millionprojects andnet debt adjusted to be EBITDA below started in the third quarter, to other parts of France. - of at least €80 million. It also ingsand it with now 20projects facilities more getting than tractsBasic-Fit under had negotiations another 40 at clubs the a 35% hike in other revenues to under construction and 86 con 2.5 times adjusted EBITDA at- The latest gyms add up to 50 €3.8will endmillion. the year with about theing endplans, of thethe year.company added 75openings openings from next the year. start of the 75Basic-Fit extra clubs, is quitewhich certain is at the it thatWhile it will describing continue itsto openapply year until the end of Septem- to 75 clubs per year that it in- return on investment for ma- higherdicated endahead of theof its range launch of 65on itsture threshold clubs, and of only at least build 30% clubs in ber, to reach a network of 388 the Euronext stock exchange when it has assessed that this Basic-Fit facilities across five - countries.part of the Dutch group’s quar- - terlyThe update, figures werewhich provided showed as a inwould Amsterdam. surpass that Even range more next im targetborts, cantwo be of met. the founders of - pressively, Basic-Fit said that it René Moos and Eric Wil “The development of the club 28% jump in Basic-Fit’s turn year.rollout pipeline is robust and HealthQuote 500 City, list which of the went wealthiest on to overThe tonumber €189 of million members for thein- in particular the site selection Photo: Basic-Fit expandDutch people Basic-Fit, this year, shot ranking up the first nine months of this year. speed,” the company said in a end of September, and advanced - creasedcompared to with 1.18 the million same at time the process in France is picking up discussions were underway for #95 for Wilborts and #100 for end of September, a rise of 25%- Moos. The Dutch magazine es- spite the warm weather in the statement.who has watched It won’t the come orange as a - timates the assets of Basic-Fit’s in6 FITNESS 2015. NEWS It was Europe achieved de surprise to any French resident yet another 100 clubs. chief executive at €190 mil Basic-Fit’s projection is un lion. Gyms Vivafit seals partnership for Saudi gyms The Portuguese company adds that that franchises proximity gyms for NuYu is a local concept that currently runs ivafit,women, the says Portuguese it has sealed company a part- be equipped with an EMS service under fourThree gyms Curves in the clubsSaudi arecapital, listed and in itsRiyadh. web- V nership with Ithraa Capital to get all Vivafits in Saudi Arabia are meant to site indicates that others are coming up in one hundred women-only clubs opened Trainer service is expected to be deliv- - itsered Personal20 at the customers’ brand. Anhome EMS or Personal office in the launch of licenses for women’s gyms, pected to change its regulations in favour Jeddah,some other Dammam facilites and are Al-Khobar. operating Pending as spas in Saudi Arabia, as the country is ex Ithraa Capital is an investment bank the near future. of licenses for women’s gyms this year. or beauty salons. with the Ithmaar Bank and the Kuwait to Alower report hurdles from for Human women Rights to practice Watch established by the Atheeb Group, along insports, August but urgedit welcomed the Saudi the opening government of a - Investment Company. It will own 90% of the shares in Vivafit Saudi, with the female department at the General Author remaining 10% in the hands of Vivafit ity for Sports at the beginning of August. Portugal. The first ten clubs are meant to Princess Reema Bint Bandar Al Saud was- openenforces in Riyadh gender next segregation, year. the country appointed to lead the department. hasWhile been Saudimoving Arabia’s towards religious some more police ac- whichThe has Vivafit seen concept the arrival has of beenseveral down low- sized to 24 proximity gyms in Portugal, ceptancein operation of women’s in the country, rights althoughto work out.the Pedro Ruiz at Vivafit in Portugal. cost concepts in the last years. On the- Aabsence few women’s of formal health licenses clubs meansare already they The agreement was sealed in the pres- other hand, Vivafit has been expanding in often have to go through regulatory con- ence of Ruiz and Rui Urbano, partner at India, with nine clubs in Gurgaon, Benga tortions to offer their services – or face luru, Cochin and Pune. Separately, Personal20 has developed- Vivafit, and Eid Al Shamri, chief executive- to five locations in Portugal and Vivafit is closure.said the Saudi project was not condi- ofguese Ithraa, minister along of withdefence Prince and Abdulazizthe coun- preparingRuiz says the to openfacility its is first to be Personal20 opened inside stu tionalPedro upon Ruiz, the chief adoption executive of regulations of Vivafit, Ahmedtry’s deputy Abdulaziz minister Al of Saud, foreign the affairs, Portu dio in the United States later this month.- regarding licenses for women’s gyms, but Sports & Health Herndon, in the metropol among others. itan area of Washington DC, with various added that it would aid the expansion. Gym Briefs Portuguese personalities. n UK Active has issued a recommendation n Alfred Enzensberger, Clever Fit founder, n Fit20, the Dutch concept offering weekly that the British government and other key reportedly told the general assembly of the training sessions of twenty minutes with stakeholders should drive an investment low-cost German fitness club franchise that personal trainers, has moved into the Brit- program worth £1 billion (€1.14bn) in the next it would be a “realistic prospect” to expand ish market with a master franchisee, who ten years to build fitness hubs that would to 500 franchises in Germany in the next opened its first U.K. facility in Sheffield. support preventive healthcare. It aims to four years, and to move into other European The group is already nearing 70 studios in transform about 2,000 ageing, public leisure countries. A low-budget proposition, Clever the Netherlands and it has another five in centers into 1,000 community wellness hubs, Fit has been one of the fastest-growing Ger- Belgium. The master franchise for the U.K. with gyms as well as swimming pools, sports man gym franchises in the last years, form- was attributed to Niri Patel, who was previ- facilities, medical drop-in centers, police and ing a network of more than 300 facilities in ously involved in franchising in an unrelated library services. UK Active estimates that Germany and Austria (and one club in the business in India. Patel has already received the investment would lead to net savings of Netherlands). As reported by Franchiseportal. enquiries from potential Fit20 franchisees up to £500 million in operating costs alone. de, Enzensberger told about 450 franchisees in the southeast of England and in the city Fitting in the context of a huge funding gap assembled in Munich last month that the of London. The Dutch group’s concept is for the National Health Service (NHS), the demand for the formula had to do with its based on short but regular and intensive recommendation was issued by Baroness simplicity and a strong brand, as well as workouts, for one or two people. Among the Tanni Grey-Thompson, chair of UK Active’s motivated and qualified employees. Unlike selling points, Fit20 points out that training board, in an update of its Blueprint for an some rivals, which have been investing in is efficient because the sessions are sched- Active Britain. UK Active says it amounts automation and virtual training, Clever Fit uled by appointment and with a personal to “a radical shift from focusing on illness apparently intends to support motivation trainer. Another time-saving point is that to promoting wellness, by making leisure and retention levels by putting more em- the workout apparently does not require a centers the preventative frontline of the phasis on its small group training concept, change of clothing, making it particularly NHS.” Other recommendations include the CleverLetics, which combines workouts on suitable for people who want to train in a roll-out of exercise intervention programs in machines with functional training in a group break from their day at the office. Due to air GP surgeries, using the tax system to expand and with a coach. The programs for next conditioning and the slow motion exercise, the Cycle to Work program with the intro- year should also include small group classes Fit20 says that the workout does not nor- duction of the Workout from Work scheme, focusing on mobility and back strength. Star- mally produce sweat. As part of the foray, and offering government grants to small and ted in 2007, Clever Fit is preparing to mark the Dutch concept has changed its name, medium-sized companies to build changing its ten years with a nationwide advertising no longer pronouncing it with the Dutch and storage facilities to encourage an active campaign. The assembly was attended by version of twenty and instead switching to workforce. Ralf Möller, an athlete and actor. the English version.

FITNESS NEWS Europe 7