April 30, 2019 N°79

Basic-Fit reinforcing Dutch FNE#79 You’re reading Fitness News leadership with Fitland buy , the independent asic-Fit intends to rein- amounting to more than 30% - business news publication for executives in the international force its leadership of sic-Fit deal. fitness industry. With an the Dutch market with ness clubs acquired in the Ba- online portal and a bi-monthly Bthe agreed acquisition of ofMaarten Dutch clubvan members.Kempen, Fitland newsletter, Fitness News Europe Started near Nijmegen by- Hans van der Aar, chief fi provides reliable business news nancial officer at Basic-Fit, said and often exclusive analysis on fitness clubs owned by Fitland- hasZeeman, received a Dutch financial textile retail sup that the Fitland clubs reported- the fast-moving fitness market. Groep,lands. the third-largest fitness port in the last years from Jan positive EBITDA. “In any case Check out fitnessnewseurope. club operator in the Nether investor. we bought them for the po com for further information. magnate, and another affluent tential they have as Basic-Fit. reportedFitland sales runs in 37 the Dutch range clubs of Theyconcept,” are allsaid in Van white der spots Aar. and with over 56,000 members that will be very profitable with our CONTENTS two market leaders, Basic-Fit to purchase all of the Fitland Basic-Fit reinforcing Dutch €21and millionFit For lastFree, year. Fitland Unlike oper the- The buyer said it wanted leadership with Fitland.p1-6 ates around the middle of the Orangetheory builds up - clubssold. Amenitiesand would such rebrand as swim most- European team...... p1-4 ship prices of up to €50 for larg- of them, while a few would be Core adds to multi-brand market with monthly member implement the full Basic-Fit strategy...... p2 - Photo: Fitland mingconcept, pools at will the be sameremoved price to Life Fitness heading for er clubs with swimming pools. rapid sale ...... p2 Basic-Fit is already the lead shares in Fitland Groep, which Puma doubles intensity in ing player in the Dutch market runsThey several own the Dutch majority hotels of and the points,Basic-Fit’s all probably managers by the have end fitness...... p3 with about 550,000 members- oflearned this year. to transform mid-mar- Lululemon to quadruple working out at 162 clubs in - abroad...... p3 the Netherlands. The com wellness centers. It previously Fitness First takes Barry’s bination would thus form a agreed to offload these facili- ket clubs intoContinued Basic-Fit, on pageas they 6.... to and Austria. p4 group of nearly 200 clubs with have done with many of their ties to another party, including Retail investor builds more than 600,000 members, four hotels incorporating fit Swedish gym group...... p5 Orangetheory invests in Europe Pure Gym to spread small box format...... p6 avid Long, chief exec- ers, treadmills, suspension accelerate the growth. ClassPass launches straps and heart-rate monitor- As Long explains, at least European blitz...... p7 D utive at Orangetheory that it surpassed sales of $1 Fitness, says that the ing announced earlier this year twoEuropean roving franchisees, employees and should to Other news Europe,company with more has madedirect itin a- - getmake started sure thisthat year all toaspects support of Crunch Fitness (p7), Gymshark priorityvestments to topush reach its aconcept target inof billion with over 1,120 studios the concept are implemented (p3), Ken Group (p7), Lolë (p3), at least 200 studios in Europe at the end of 2018. Only a doz Reebok (p3), TrainMore (p7), UFC Gym (p7) properly. They are usually on by 2024. hand several weeks before and “The parent brand is really after club openings. Fitness News Europe is excitedin Paris, about to the the pointprospects where in The field staff will probably published by Zelus (France) major cities in Germany and be based in Germany, which is Editor: Barbara Smit a key target for Orangetheory [email protected] we might just end up doing a Photo: Orangetheory Fitness. A first German studio All rights reserved. [email protected] jointin Cologne venture earlier and putthis in month, some wasend of launched 2017, and in Lübeckanother byis ISNN: 2650-8702 of our own money,” Long said- en of them are in Europe so far, Jeannine Mickeleit around the ness is forming a team of Euro- which should secure more ex- The information published in this newsletter adding that Orangetheory Fit opening shortly in Hamburg, cannot be copied or distributed electronically Disclaimer: growth. butmore the potential franchise partners holder and has is without the publisher’s written permission. pean field staff to support the- beeninvesting holding in infrastructure talks with many to posure. However,Continued Long on page says 4.... that Orangetheory Fitness is http://www.fitnessnewseurope.com/disclaimer/ The U.S. concept using row FITNESS NEWS Europe 1 Top Gear Core adds to multi-brand strategy ore Health & Fitness is targeting a Core has centralised all of its production turnover of up to $30 million for - - tional training gear was added a few years C ago. Ted Joiner, who ran the relevant cate inat athis manufacturing Chinese plant. unit The in groupVirginia. said It willlate weights, plates and dumbbells un goryHawkins at Throwdown, said that Core’s is joining sales Coreremained with lastfocus year on thatcustomisation about 50 jobs and would continue be cut to of commercialder the Throwdown strength and brand cardio after gear. five otherin the keyrange staff. of $150 million after an uptick years,Core to acquired complement licensing its multi-brand rights for sales the - operate as a distribution centre. ofand about , 2% last while year. Itthe came Chinese entirely market from Another change at the end of last year- Throwdownmonth, while brand the owners in the functionalcontinue to train sell Asia, with more sales in Japan, was the departure of Justin Grosz, the- ing gear category, as reported earlier this group’s president and chief operating offi was hit by relative economic sluggishness. cer.replaced. The group said he was leaving to pur gloves, bags and apparel under the same Core’s turnover was flattish in Europe, sueAmong other the interests, intended and growth he has drivers not been for brand. - “There’s the opportunity to scale it and terval training from StairMaster, and the put it into our eco-system that drives this year are a rower for high-intensity in- technology, innovation and distribution,” tion in this treadmill comes from the Hex- explains Tim Hawkins, vice president of- Free Runner from Star Trac. The innova global sales and marketing at Core Health &the Fitness, commercial which market. owns Star Trac and Stair Deck System, consisting of an aluminium Master, and sells Nautilus and Schwinn in running deck supported by proprietary hexagonal polymer suspension. Hawkins said that Throwdown chalked Hawkins said the Free Runner has been up sales of $3 million to $4 million with its Star Trac Free Runner Core Health & Fitness eagerly used in the facilities where it was- weights, plates and dumbbells, and most of- - installed for trials in San Francisco. “If you thattion thatwent is to disproportional just a handful toof its customers sales and in it ness. It saw strong demand in Poland, af- talk to runners, they say it feels like run the U.S. market. But the brand has recogni which makes up about 25% of the busi ning on a Mondo track,” he said. “There’s a - littlesuggests bit ofthat give the on thealuminum impact, makesbut there’s the appeared logical for Core to buy its way into ter the launch of a subsidiary became fully- a nice give-back on the return.” Hawkins this category with an established brand. operational last year. Along with its Euro “We’re selling half-racks that need weight pean office in the U.K., the group previous product more durable as well, because it- plates and we’re making dumbbell racks ly opened offices in Germany and in Spain, disperses heat away from the belt. that need dumbbells,” said Hawkins. “We where demand was weaker last year. Core has also been working with part were able to make a buy that got us a brand Throwdown should benefit from Core’s ners such as 4iii and Motosumo to inject straight away and instant recognition.” international distribution as well as its more digital technology into its products,- innovationThrowdown center. is situated Before in the Lake licensing Forest, manufacturing capacity in China. While as part of its OpenHub strategy. “We never- California, just down the road from Core’s- the production of Throwdown’s weights require a member or a club to first inter ering some products together. and plates is currently scattered between face with our software to enable an ex agreement, they had already started deliv the U.S. and several Asian sites, it should changeall sorts of of data,” applications, said Hawkins. without The imposing idea is around mixed martial arts, and the func- allBruno, be brought Core’s ownertogether and to chiefLand executive. America in to make Core’s products compatible with Throwdown Industries was formed Xiamen. The factory is owned by Michael Life Fitness heading forits rapidown systems. sale n impairment charge of - sales process,” said Dave Foul- pairment of $137.2 million re- tax was taken earlier levelkes, Brunswick’s of buyer interest chief execu in the- sale process.” The pre-tax im an operating profit margin A$137.2 million before tive, in a conference call with shrinking from 14.7% in 2015- - en several rounds of special sulted in an adjusted net book to just 2.2% last year. plier’s thisowner year is on preparing Life Fitness, for - value of about $500 million for The entity has already tak as the fitness equipment sup analyststinue to maintain last week. our prepared- theintegration fitness business. and impairment weeks ahead. “Consequently, while we con chargesWith of restructuring, $138.3 million, exit,the charges, mostly relating to the a Brunswick sale of the Corporation company in said the - integration of Cybex, which - ness for spinning the business, erating loss of $139.1 million was purchased by Life Fitness ed to spin off Life Fitness to fo- we have confidence that we will fitness entity reported an op more than three years ago. in March last year that it want be in a position to announce a to The$225.2 turnover million of in the the fitness quar- group studied a stock market salesecond of thequarter,” fitness Foulkes business con as- for the first quarter of this year,- entityter, with declined declines by across another cardio, 8% cus on its marine business. The expeditiouslytinued. as possible in the compared with profit of $11.0 strength and consumer gear. Brunswick explained that million for the year-ago peri listingthe plans for thehad fitness shifted company, toward the impairment charge was od. Even on an adjusted basis, butan outright made it clearsale, lastwhich week should that the operating profit reached The group’s sales fell by 15.0% - justfrom $0.9 5.0%. million, amounting to to $45.4 million in Europe and- taken in the first quarter after a profit margin of 0.4%, down- by 15.2% to $35.7 million in Asia beprogress concluded on separation shortly. and are a “re-evaluation of the fair val- ness has deteriorated mark- Pacific. Lower sales to Planet Fit “We have made significant ue of the fitness reporting unit The performance of Life Fit ness were blamed for a 5.3% dip which was informed by sig to $115.1 million in the fitness very2 FITNESS encouraged NEWS Europe by the strong nificant progress made on the edly in the last years, with entity’s U.S. turnover. Retail Puma doubles intensity in fitness uma is widening the running on a treadmill as well Soft as a whole has returned to ro- pany, even though the brand - P reachsplitting of it its into business two, with in margins. asing floor separate exercises. retailers, to make Briefs distinctwomen’s ranges fitnessand targets gear for by bust sales expansion and profit The two ranges are target - n Reebok has reportedly lost The segmentation enables- sure that they aren’t mixed up. the exclusive right to provide high and low intensity training. Puma to dig deeper into the fit- While the high intensity gear footwear for athletes competing rangeThe launched intensity in relates Europe mostly a few ness category. “For low intensi isrange most is suitableheaded for for department fitness and at the CrossFit Games. They will toweeks heartbeat. ago refers The lowto activitiesintensity tyas youwell wantas comfort products and thatfreedom pro sportsstores stores,and online the low customers intensity continue to wear apparel from vide support for your muscles, such as Asos and Zalando. Reebok, but they will be allowed Adriana Lima remains the to turn up with footwear from suchelse, asfrom yoga, intense Pilates andfunctional barre. of movement, and you want to Nike, No Bull, Inov8 or any other High intensity covers nearly all take away any distractions,” - brand. Some athletes had been social media flag bearer for the complaining that the exclusive training to Zumba and other fitnessimpactful range, partnership and Puma onis conthe rights attributed to Reebok gym activities. sidering options for an equally devalued their potential partner- Puma projects that the low- ships with other brands, since intensityen’s training range apparel. could makeBut the up low-intensity side. - they would have to wear Reebok about 20% of its sales in wom Baust outlined the strategy at the event with the strong- - last week, just after Puma re est exposure in this discipline. companylulemon, and insists instead that aligning it’s not ported a sales jump of 15.3% The report in Morning Chalk replicatingwith Puma’s brands edgier suchapproach. as Lu to €1,319 million for the first Up comes a few months after Photo: Puma three months of this year. Sales Reebok and CrossFit reached a Hustle, moving fast,” said Kar- moveddemand up grew by 4.4%much in faster Europe, in settlement putting an end to a en“We’re Baust, general about manager Generation for Baust explains. She mentions the Middle East and Africa but lawsuit filed by the organisation last year. Asia Pacific, including a sales Puma’s business unit covering high-waistedwant to cover yogaup a little pants in andthe hike of 40% to 50% in China.- n Lolë has started targeting fitness, training and running.- some layering for women who With that trend, Puma’s sales male customers in Europe with “But we have found out that the- studio guests. are increasingly balanced be a small offering in its own stores same young and urban consum often close proximity of other tween Europe, North America- and online. The women’s yoga er is very concerned about a ho and Asia Pacific. brand already launched a men’s listic approach to wellbeing, it’s This contrasts with the- forThe the rise quarter, was driven with bytraining surg range in two years ago the counter-balance, the ying to high-intensitytion and thermo-regulation. range, for which ingand apparelrunning sales, among up theby 28.6%stron- and decided to take the initiative theira crucial yang.” part in Puma’s turn- key functions include ventila gest categories. Puma’s oper- across to Europe this spring. Women’s fitness has played with a focus on multi-direc- As previously reported, the continues to outgrow the com- Thistional range movement, includes intended footwear for brand restructured its Euro- around in the last years. It ating profit surged by 27.0% to pean activities earlier this year, €142.5 million for the quarter. leading to the departure of its Lululemon to quadruple abroad former managing director for Europe, Géraud Maréchal. Charlie ululemon is aiming to Lululemon’s online sales and Among the latest invest- Desclaux is heading up sales and quadruple its internation- - ments in Europe are cus- marketing from France. ness in men’s apparel, with tomised online stores for the L to double the size of its busi French and German markets. n Gymshark is reportedly pre- plan unveiledal sales last in theweek. next five - paring a funding round based years, as part of a strategic- productsnounced on such this as occasion boxers that and on a valuation of £500 million runningit intended gear. to The move company into anthe Theafter Canadianthe latest opening brand hasin Am 21- (€580m) for the British fitness “We’re at the cusp of an in - stationarysterdam. stores in Europe apparel brand. The Mail on flexionexecutive in vice our president international in out providing details. Sunday reports that Gymshark business,”charge of international said Stuart Haselden, sales, at footwearHaselden market, reiterated albeit withthat 10% to 15% of the group’s managed operating profits of - earningsThe plans to come envisage from aboutinter- £18.1 million on sales of £103.6 ket where Lululemon remains million (€120m) in the latest an investor day in . EMEA is the only regional mar fiscal year, compared with £40.7 The yoga apparel brand has national markets by 2023. million for the year until July already raised its international- unprofitable, adding that it That suggests a lower profit 2017. The brand’s results for the salesing from to about Europe, $360 themillion Middle last would probably take about- margincomplications than in of North shipping America, and next fiscal year are are supposed year, with less than 25% com eighteen months for the brand which Haselden attributed to to be filed today at the latest. Lululemon is targeting an an- toLululemon’s reach breakeven. managing But hedirec re- Other plans include the The social media savvy company Eastnual average and Africa sales (EMEA). increase But of peatedly praised Gareth Pope, regional adjustments. from Solihull, established by over 30% until 2023, with the - products, a range of personal Ben Francis and Lewis Morgan in largest chunk of the expansion tor in EMEA, for “recalibrating launchcare products of travel and the and opening office 2012, is said to have teamed up coming from China. andgaining re-tooling” recognition, the brand’s which reis of an experiential store in Chi- with relatively small investment gional strategy. Lululemon is - firms for its funding round.

The international goals are contributing to an acceleration cago with yoga studios, medi FITNESS NEWS Europe 3 part of a plan aiming to double of comparable store sales. tation space and a juice bar. Studios Fitness First takes Barry’s to Germany - - itness First Germany is preparing to ry’s,” he said. - Oaktreetalising onis currently further growth not focusing opportunities on a po F take Barry’s Bootcamp into Germany- The investment suggests that Oaktree is tentialwith the sale LifeFit of the Group group, which but rather will evencapi- and Austria, as part of a multi-brand not in any particular hurry to divest Fit fitness club strategy under the new ness First Germany, as it did nearly three ly-formed LifeFit Group. years ago with the sale of its British clubs tually lead to a sale in a couple of years’- The strategy started taking shape late to the DW Group. In other markets, in Asia time,” said Collinet. He and Seibold are last year when Fitness First Germany andgroups, , not unlike Fitness the First platform has become under both managing directors of Barry’s Boot acquiredathletic performance Elbgym, a group training. of three gyms part of larger multi-brand fitness club camp GmbH. - from Hamburg, focusing on functional and- - velopmentFitness First should could focus add on a couple the other of gyms con- construction in Germany and Austria. in the next three years, but LifeFit’s de Oaktree Capital Management, the major- “With the LifeFit Group we have devel ity owner of Fitness First Germany, formed oped a fitness platform whose brands are cepts. A fourth Elbgym is set to open in LifeFit to bring the Barry’s license for Ger Hamburg in the autumn. manyBut Christophe and Austria Collinet, together chief with operating Fitness BootcampThere are in onlyBerlin, a few which boutique is part studios of the First Germany and Elbgym. informer Germany McFit so Group. far, such as Ride and John’s clear that another two or three concepts officer at Fitness First Germany, makes it and cardio interval training, with weights Barry’s Bootcamp, which offers strength- could be added to the group, one of them probably before the end of this year. and treadmills, has slowly but steadily de Collinet said that a boutique market is veloped in Europe in the last years. After- emerging in Germany, and Barry’s has- itstors launch who inare the preparing U.K., Norway to open and Sweden,another what it takes to drive it. “Barry’s has so- - Barry’s was started in Milan by two inves many elements that make boutiques suc - have teamed up with Franck Hédin to take cessful.workout Aexperience,” very strong he brand, said. clear posi leaders in their segment. This segmen studio in September in the same city. They- tioning and an energetic, unforgettable tation makes it possible to service cus ported. tomerspresident better at Oaktree, and support in a statement. growth,” said Barry’sEarlier to thisParis month in June, Fitness as previously First acre- The first Barry’s Bootcamp in Germany FedericoAnother Alvarez-Demalde,reason to continue seniorinvesting vice is should open in early 2020, and Collinet the improved performance of the Fitness estimates that there could be three to five quired a majority stake in Profession Fit, a- across Germany and Austria in the next- supplier of fitness programs for corporate- three years. “The focus in Austria will be- First gyms in the last two years, under the customers, to be integrated with MyFit on the two biggest cities, in Germany sev leadership of Martin Seibold. nessCard and MyFitnessVideo. This busi Orangetheoryen to ten cities would be suitable for Bar forms“Given this veryEuropean positive development, nesssupport has not been bundled team into LifeFit. ...continued from page 1 - most eager to seal a wider partnership for the German market. the London market was particularly con volves around very practical issues such strained by real estate. - as the operational flow in the franchises. The latest European market is Poland, “Peoplemonitoring, come it’s in andcontrolled out at the chaos,” same time,Long Based on the concept’s trajectory in the wherewith a Maciejtarget to Turowski add three opened in the aPolish fran youexplains. have to set them up with heart-rate U.S. market, it takes at least two or three chise in the Mokotów district of Warsaw, - clubs in a cluster for openings to multiply. That is what the franchise owner saw in capital this year. Along the way, Orangetheory has devel the area of Florida where Orangetheory The “very realistic” European target of- oped very detailed insights into habits and Fitness got started. With three studios in 200 studios in five years fits with a global requirementsin the set-up of that the franchises,vary from downone area to the to operation,which led to it a began second to and get larger referrals wave and of plan to expand to 2,500 clubs with 2.5 mil the other. They have informed variations manyopenings. more requests from franchises, lion members by 2024, up from 800,000 Long is anticipating a similar scenario in members at the end of last year. size of the reception area. Spain. Its franchisees have two studios in Long said that Orangetheory Fitness- “In New York people are okay being - should have about 1,600 locations in the squished into a lobby because that’s the U.S. and another 300 in Canada and Aus way things are done there, whereas in a Madrid and Orangetheory Fitness is mov traliaAsia and by Latin then, America. with the remaining 600 rural or suburban location that wouldn’t ing into Barcelona shortly. “We open four split roughly equally between Europe, beso thefar case,”suggests says that Long. the motivation and or five more in Spain this year, during that- - The response from European studios processated well,” you said get Long.more franchises, next year The appointment of European support- it will probably be ten, as long as it’s oper employees fits with Orangetheory’s de behaviour of Orangetheory members are clared aim to deliver consistently out- quite similar in both markets. masterOrangetheory franchising is takingagreement time wasto acquire sealed standing workouts. That is crucial for the supportBut precisely staff in to European grasp subtle should variations, come scale is the U.K., where it has six studios. A brand, because a large share of its mem the chief executive emphasizes that its of England, after another for the south bers join upon referrals. - lastof England. year for Long the Midlandssaid that andthe growth the north in seesOrangetheory receive proper works support with around about fiftythe from the European market. They will start agentslaunch inof thetheir U.S. studios. to ensure Some that of franchithis re- by spending six to eight weeks in the U.S. 4 FITNESS NEWS Europe to learn about the concept. Gyms Retail investor builds Swedish gym group achieved through consistent group from Östersund is - investment in all aspects of the implemented functional train- he purchase of a gym- business, and the deal with- facilities, as well as leadership ucts. The Lind brothers have T Sportsgymers as well. provides for en training to make sure that this - turning STC into anoth gagement from the Lind broth attitude is ingrained at all lev- ingtra fee.areas in their clubs, which er leading player in the els of the organisation. require the payment of an ex- Swedish fitness club market,- STC had 46 gyms when Novax - withes under a clear-cut the ownership strategy of and a came on board, with a target to STC has just started up plentySwedish ofretail financial investor. resourc reachinstead. 100 Along in five years,with butSports that- “If you know that Barack selling with The Trip, the im should be reached next year Obama is coming to your gym mersive indoor cycling class in the morning, you’ll probably- from Les Mills, which has been STC said earlier this month- clean the floor one more time, installedKungälv. atIt itscould flagship implement club of that it would fully integrate you’ll greet him with enthusi aboutsome of 4,000 the squaresame tactics meters as in Sportsgym,and Kent-Ove a groupLind in of the 20 area fit asm and do all you can to make nessaround clubs Östersund built up and by Sunds Peder- sure he has a great time,” says list and stimulate upselling. vall, in the middle of Sweden. Bexell. “We want our staff to Sportsgym to diversify its price treatAndersson all of our adds members that the in opthe- Taking on Stockholm sameerator way.” prides itself on the mix Personal training is another The combination forms a group - of more80 clubs than with 300 around million 90,000 Swed- members and annualised sales of its customers. “We have se areaoperator with has plenty spent ofmuch potential of the - niors in the morning, business for development at STC. The Photo: STC ish kronor (€28.2m). people at lunchtime, younger raise the proportion of mem- that“Sportsgym complement runs our quality portfolio, fit guysit gives in us the extra evening. drive,” We she work said. last months studying ways to ness clubs in strong locations ten openings in the works this hard for that diversity because gym, the group already has bers using personal trainers, and the company is managed - This strategy is supported with a variety of employment by talented entrepreneurs,” year, and more next year. by a mix of facilities arranged and payment models. said Josef Bexell, investment The rebranding of the Sports in3,000 clusters. square They meters include for full-the “We want to build personal managerand their assets.” at Novax. “We’ll be gym clubs in the next months sized fitness clubs of about- trainingtrains several for all timesmembers per atweek,” STC, able to build on their network should be relatively easy, since not just the affluent guy who they work with a comparable- entireexercise family, training, as welland smaller as me the mother with three children Novax is the investment firm concept and key price point of dium-sized clubs with group said Andersson. “If I could get that bought a 55% stake in STC aboutplace, to €40 operate per month. as a regional Sports that are open at all hours with- last year through Novax Gym gym’s office staff remains in- clubsout staff. of 300 square meters, to take a PT session once per Holding. It belongs to the Axel month, that’s just as important Johnsoninclude Group,Åhléns whichdepartment owns office and to support expan for me. That means we need multiplestores along retail with ventures. concepts They sionSmile around for Obama the country. These Xpress clubs function ranging from homeware stores Bexell explains that the deal as “service centers” for the to pharmacies and fashion largerequipped clubs with in thevirtual cluster. group All shops. - oftraining the new gear. Xpress clubs are fits with the objectives set by Novax when it started invest- The remaining 45% is owned ing in the gym business last theseThe assets resources through from invest Novax- by1997 Katarina in Kungälv, Andersson north and of Goher- year. Novax was already a mi should help STC to build on partner, who created STC in nority shareholder in Concept- - couple continues to run the Träningsredskap,tors, which whetted one its ofappe the- ments in technology. They could thenburg. The entrepreneurial leading Scandinavian distribu- be particularly useful to im prove the onboarding process, Photo: STC Quick Read tite for investment in the fit- which Bexell describes as one personal trainers who under- ness industry. ofUpselling the few weakupside spots at STC. stand all sorts of people.” n the“There’s Swedish a market,” window said of opporBexell. tunity to build and consolidate- started in Skåne province, in the STC and Sportsgym form The task of onboarding so far The next regional push has group of 80 Swedish gyms with “Wethat, knowto grow how with to organic scale a open busi- has been left entirely to staff, n90,000 Expansion members under and the sales of ness and we can finance all of- but STC reckons that members- southanother of in Sweden. southern STC Sweden bought about €30 million der that he gets calls with take- couldtion. As be an accompaniedexample, messages more three clubs from L9 Fitness and shareholder and investment arm ings and acquisitions.” No won efficiently with some automa impetus of Novax, STC majority throughin its sights a Sportsgym as well. affiliate.As Bexell n over offers on a weekly basis. - to members could be targeted of Axel Johnson Group, explains,The operator the group’s has Stockholm target to Novax wants to build the more sharply if the operator- - n “Best in town” strategy, upside network around the STC con had all relevant details about formto improve cluster upselling in southern and Sweden PT cept of offering “best in town”- theirAmong objectives the andcompetencies preferenc achieveSwedish capital country-wide – and the cover in- andTen move openings into Stockholm. in 2019, plans to facilities,thusiastic withand competent a wide variety staff, es in its system. age will inevitably take it to the of impeccable equipment, en - the plans. added by Sportsgym are the vestor is clearlyFITNESS chuffed NEWS Europe about 5 and Les Mills classes. That is ability to upsell more prod Gyms Pure Gym to spread small box gyms - mall box gyms should support Pure inline the and country is well to placed find suitable in the current locations. retail between the two British market leaders S Gym’s continued expansion this “Pure Gym has a strong property pipe has been slightly reduced, since The Gym year, as the leading British budget - Group added 117,000 members last year. club operator is using its downsized environment to benefit from the increasing- This compares with 85,000 for Pure Gym, format to take up empty retail sites. number of vacant premises, with the in- which remains comfortably ahead. Pure Gym raised its sales by 15% to- creased footfall of a Pure Gym site provid Average revenue per member per month £228.4 million (€264.9m) last year, and ingchief benefits executive, for inboth a statement. landlords and retail increasedsports water, by 2.2%which to was £18.38 launched last year. at Pure The its EBITDA moved up by 14% to £73.1 mil ers,” said Humphrey Cobbold, Pure Gym’s rise was driven by extras such as Yanga lion (€84.8m). The number of Pure Gym members jumped by 9% to 1,012,000, While its standard gyms are about 1,400 Gym last year. Another large-scale project excluding six out of the ten Soho Gyms finalised in 2018 was the introduction of a- purchased last June, which have yet to be- new mobile app. rebranded. - The average EBITDA of Pure Gym’s ma With 26 organic openings and the con ture sites increased by 6.2% to £519,000. versionthat the of operator four Soho accelerated gyms, Pure its Gym expan end- The adjusted EBITDA margin per site ed the year with 222 clubs. This means firmed up by 0.4 percentage point to 45.0% for the year. - sionhas no with intention 30 extra of slowing gyms, compared down. with The ten year-old operator was divested 20 added clubs in 2017, and it apparently by CCMP Capital and acquired by Leon ard Green & Partners in November 2017 The target has been set at another 30 to Photo: Pure Gym for £308.2 million (€357.4m) and the 33 clubs this year, including seven small elimination of debt worth £355.9 million- box gyms and excluding the six Soho gyms (€412.7m). Two months later Pure Gym thatadded have so far.yet to transformed. The program to 1,900 square meters, Pure Gym opened launched a bond issuance worth £360 mil is already well underway with 13 clubs four clubs with sizes of about 460 to 740- lion (€417.5m). squarelords, which meters. is encouraging The group saidit to acceleratethey have Separately, Pure Gym said that Dina Smaller formats have been opened by beentheir roll-out.well received by members and land Asher-Smithfemale British has sprinter become who an won investor three gold and budget club operators across European- - ambassadormedals at the for European the fitness athletics club brand.champi A- marketswork. But in the the surge last twoin retail years store to reach closures out to smaller cities or to fill gaps in their net Pure Gym remains the third-largest Eu ...continued from page 1 ropean operator in membership numbers, onships last year, she joins the cyclist Chris in the U.K. is making it easier for operators far behind McFit and Basic-Fit. The gap Hoy as a Pure Gym partner. it wanted to pick up a little more growth in the operator signalled earlier this year that Basic-Fit’s sales of fitness memberships- was up by 29% to €116.3 million for the- former Health City clubs. “We expect that other markets. Fitland was an opportunity- quarter, due to the larger number of mem more,” said Van der Aar. about 20% of the members will leave, to bulk up the Dutch network rapidly with bers as well as an 8% rise in average mem - but many will return and then we will get locationsBasic-Fit that said neatly that the complement acquisition the price, ex bership price to €20.43 for the quarter. pen relinquished the leadership in 2017. isting estate in the Netherlands. - This comes after Basic-Fit raised the No longer the sole shareholder, Van Kem - annual price of its standard membership including the refurbishment and rebrand- price by switching the duration from one The chief executive’s seat was taken over the ing of the Fitland clubs, would be equiv month to four weeks, and by launching a and Philips, and a leading Dutch retail chain same year by Peter Peters, who previously alent on a per club basis to the initial in premium membership at just under €30 for hearing aids. worked for large companies such as Nokia vestment to build a Basic-Fit club. - for four weeks, allowing members to train - The proposed deal should be financed withusage a of friend. the Basic-Fit Both memberships app. include ternal changes, to strengthen management, through existing bank facilities and it’s an access to all clubs around Europe and free- “We started by making far-reaching in ticipated to be earnings accretive from next- ers are taking this option, and that over year. The takeover should be finalised in Basic-Fit said that 25% of new join improve processes and marketing, because July,Van subject der Aar to completionsaid the takeover of the consultawould in growth, and we had to decide if we should Fitland had been run like a family firm,” said tion of the works councils of both groups. 130,000 friends have joined premium- - Peters. “Then we built a business plan for membersships, it does on have their a workouts. clear positive “Although effect ing discussions made it clear that there was no way distract from the operator’s plans thison revenue,” limits the said growth René individual Moos, the member group’s do this alone or with a partner.” The ensu toDutch open and about French 125 expansion clubs across teams its work five chief executive, in a statement. European markets this year, because the plentyfor Basic-Fit, of interest due toto buy Fitland’s Fitland. locations and - The fit was apparently most judicious separately.Basic-Fit reported that it raised its turn- France,The Dutch three operatorin Belgium closed and oneone clubin the in ance and we have quite a few group classes, The agreement was announced just after Spain during the quarter but added 19 in somewhich ofis itsan contents.area of interest“We offer for more Basic-Fit,” guid overin the by three 29% months to €119.4 to millionform a fornetwork the first of Netherlands.top of the Fitland conversions, compares quarter. The Dutch group opened 22 clubs withThe 108 plans openings to add 125in 2018. clubs Basic-Fit this year, has on said Peters. He will leave the company after Basic-Fit has not expanded much in the the integration but he is eager to remain in 651gyms in five European countries at the the fitness industry. end of March. That’s an increase of 118 36 clubs under construction and contracts- clubs compared with the same period last signedtion phase. for another 37 clubs. More than Netherlands in the last years because it 6 FITNESS NEWS Europe year, while the number of memberships 250 clubs are in the research or negotia doubled down on expansion in France, but jumped by 19% to 1.96 million. Eco-system ClassPass launches European blitz - - classes in the period. pean markets in three countries, with plained. lassPassa target tohas reach started more a blitzthan on30 Eurocities translatedAnother fordistinctive the first aspecttime,” Wikmanof the Euex- C ropean approach is that it will put more ClassPass competes directly with Dutch emphasis on corporate customers. Class- providers led by OneFit and FitSociety. In with aacross launch Europe in Amsterdam, by the end Rotterdam,of the year. Germanyon a European it will comeexpansion across drive rivals as such well. as It started in the Netherlands last week its corporate program has taken off with Urban Sports Club, which has embarked Pass started out as a consumer brand, but- - Theactive Hague later and this Utrecht. week, ahead Next upof itsare launch Berlin Strongly established in Germany, it has and Munich, where ClassPass will become customers such as Facebook, Morgan St moved into France, Italy, Spain and Por - tugal, after a fundraise led by Partech in in Paris around the middle of May. October. Among its most recent markets “We are fast-tracking our European ex areAmsterdam, Lyon, Bordeaux Munich, and Berlin Lisbon. and Paris, and pansion, it’s all happening,” said Rebecca ClassPass has opened regional offices in- Wikman,aggregator international to Scandinavia, marketing Spain, Portugal,manager at ClassPass. The next step should take the it has started appointing country manag erscapitals in each of the of theEuropean markets. countries Wikman where said Italy, Ireland and a few more British cities. the company intends to open offices in all Wikman is based in London, where ClassPass has established its international itsurpassed operates. 1,000 The studios expansion across teams European have office, under the leadership of Chloe Ross Photo: ClassPass movedmarkets ahead this week. with such alacrity that they since last year. It has eagerly tucked into- thecelerating funding its of international $85 million expansion. raised in July - last year, precisely for the purpose of ac A key argument is that ClassPass Asian markets, and added extra impetus tanley and Adidas, pitting it more square- “drives growth by unlocking new revenue- ClassPass started by targeting a spate of lying against landscape Gympass. for corporate, The aggregator and we have said streams,”namic pricing the with company Smart argues. Rate, its It propri boasts- thata new “Europe found focus proves on tothis be with another a growing excit that partners who take advantage of dy behindIn the this last drive months in Januarythe focus by has acquiring shifted Guavato Europe, Pass, where a leading it has regional taken player. a more lo- Among the Dutch studios on offer are etary algorithm, raise their reservation calised approach, starting with the launch team now based in London.” volume10% to 15%.by an average of 25% to 35%, and - their average sales per schedule rise by- Saints & Stars, Great Studios and White in both Dutch and English in the Nether- Door Studio as well as HealthCity’s “ClassPass has created spot fill tech lands. “All the marketing comms that you full-servicemonth, allowing gyms. users The to prices take forup Dutchto 20 nology that protects the spots studios fill see, throughout booking and the custom consumers vary from €29 to €79 per directly, opening only the ones that would er journey, from start to finish, will all be Gym Briefs otherwise be empty,” it adds. n TrainMore is moving ahead n CMG Sports Club has con- n Global Fitness Ventures, the n The Russian Fitness Group, this summer with the launch firmed that a takeover offer master franchisee for Crunch the company behind the upscale of an upmarket studio concept led by the Ken Group has been Fitness in Iberia, has struck World Class fitness clubs in that is open at all hours, near approved by its board, adding an agreement with a group of Russia, has agreed a deal with the Vondelpark in Amsterdam. that the deal should be finalised investors to open five gyms in UFC Gym to open up to 55 clubs TrainMore’s clubs are most around the middle of May. As the Lisbon area. Along with its in the country. This comes a famous for offering a €1 rebate reported earlier this month, partnership with Crunch Fitness, few months after the operator to its members for each of their the Ken Group has teamed up Global Fitness Ventures has a li- obtained support from a consor- workouts. TrainMore Non-Stop with Accor, a large-scale French censing agreement with Cristiano tium led by the Russian Direct In- will allow them to train more hospitality group, which has Ronaldo to use CR7 as a brand vestment Fund (RDIF), Russia’s flexibly, in a high-end décor and taken a minority stake in the for its fitness clubs. It has two sovereign wealth fund, and the using smart technology. They venture. The Ken Group consists own clubs trading as CR7 Crunch Mubadala Investment company will check into the club digitally, of three exclusive Paris clubs, Fitness in Madrid, where Ronaldo from Abu Dhabi. They have taken book their small group training Ken, Klay and Blanche, owned by previously played, and is holding over a stake of 22.5% in the Rus- through an app, and take part the Benzaquen family. They have talks with prospective franchis- sian Fitness Group, which was in live-streamed cycling classes. pledged investment to spruce ees in Spain, where it estimates previously owned by VTB Capital Marjolijn Meijer, TrainMore’s co- up the 21 clubs owned by CMG the potential at more than 30 (read FNE#71). RDIF was already owner, says that the ambiance Sports Club in and around Paris, clubs in three years. The Lisbon involved with UFC Russia. The should be akin to that of the with about 42,000 members. investors will predictably use the Russian Fitness Group has most TrainMore Black Label studios. The former market leader in Paris reference to the Portuguese foot- recently diversified with several The project comes a few months has come under pressure from ball star on their clubs. The group studio concepts in Moscow, a after TrainMore, Club Sport- younger and cheaper concepts, includes specialists in fitness franchising partnership with ive and High studios formed such as Fitness Park and Neo- and retailing, among others. Sep- People’s Fitness in Latvia and the Urban Gym Group, which ness. The majority owner since arately, Global Fitness Ventures another with Rixos Hotels. It has obtained funding of at least €16 June 2016 is LFPI, an investment is holding talks with potential allowed the World Class brand to million. Next up is a move into fund, with another 18% in the interested parties in Italy, where spread to Turkey, with another Belgium, starting in Antwerp. hands of Club Med. Ronaldo is now playing. project in Dubai. FITNESS NEWS Europe 7