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UK gyms lose £3.1 billion as a result of Coronavirus closures
Fitness facilities in the UK have lost £3.1 billion (US$4.3 billion/AUS$5.5 billion/NZ$6 billion) since the onset of the Coronavirus pandemic, with more losses expected as a result of ongoing falls in memberships.
According to a study by Pharma Nord, another £46.6 million (US$64. 6 million/AUS$83.5 million/NZ$90.5 million) will have been lost by the 1,164,000 people who it would have expected to join in January 2021.
With gyms usually experiencing a post-Christmas membership rise (UK gyms benefit from a 12% rise in members each January), the research advised that the commencement of England's third national COVID-19 lockdown on 5th January prevented this boost,
While fitness memberships obviously vary in price, the Money Advice Service suggests that the average monthly fee is about £40 (US$55/AUS$71/NZ$77) every month.
Based on this rationale, Pharma Nord estimates that pre-COVID, the fitness facility sector would typically make £388 million (US$536 million/AUS$692 million/NZ$752 million) every month.
Overall, there has been £470,000 (US$650,000/AUS$841,000/NZ$911,000) of lost revenue per fitness club, since the first national lockdown in March last year.
England saw facilities including gyms, hairdressers, zoos and theme parks, reopen on 12th April alongside non-essential shops and outdoor hospitality venues including restaurants and beer gardens.
As reported by Yahoo Finance, like many UK leisure businesses, gyms have been battered during the Coronavirus crisis.
Many have been closed for a large portion of 2020 and for some months in 2021 as fears of spreading the virus led to widespread lockdowns. The loss of monthly subscriptions and unused investments in COVID-secure equipment such as PPE has been costly.
The revelations come following concerns from gym bosses that the larger chains incurred significant ongoing losses under lockdowns.
In January, the Gym Group (GYM.L) said that its monthly cash burn during the current COVID-19 lockdown is £5 million (US$6.9 million/AUS$8.9 million/NZ$9.7 million), while the November closures cost £6 million (US$8.3 million/AUS$10.7 million/NZ$11.6 million). The group said that 45% of last year’s trading days had been lost due to governmental restrictions.
While £300m in support was offered up for sports in the most recent budget by UK Chancellor Rishi Sunak, the UK Government has come under intense pressure to say what it can give to aquatic centres and exercise facilities, with the industry body ukactive saying around 400 facilities have already closed permanently and that another 2,400 are at risk.
15th April 2021 - Nominations open for the 2021 Australian Fitness Awards
12th April 2021 - Australian Institute of Fitness supports Industry Technology Summit
25th March 2021 - Fitness Industry Technology Summit offers COVID Guarantee
22nd March 2021 - Fitness and Lifestyle Group launches Emerging Leaders program
11th March 2021 - Rapid growth sees Fitness Business Sales expand its staff team
4th March 2021 - Highlow Fitness launches boutique HIIT subscription model
2nd March 2021 - VIC Active continues to highlight the safety of fitness centres
23rd February 2021 - Fitness Australia’s Barrie Elvish highlights the value of health
11th February 2021 - International fitness bodies launch leadership initiatives
3rd February 2021 - New fitness platform MoveMii launches to connect members with personal trainers
1st February 2021 - New report analyses growth of the Chinese fitness industry
7th April 2020 - Two-thirds of the world’s fitness clubs are currently closed
27th December 2018 - London’s 1Rebel looking to Australian fitness expansion
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