If you pulled on your cross trainers and bounced in to a fitness club within the last quarter, there’s a high probability it was a Planet Fitness-the high-value, low-price (HVLP) chain with over 1,300 locations.
Using foot traffic analysis pulled from its Foursquare City Guide and Swarm apps, Foursquare learned that nearly 25% of gym-goers went along to a Planet Fitness in the second quarter of 2017. Put simply, of all individuals who entered a gym in that time frame, a quarter of those walked right into a Planet Fitness at some point.
The numbers show the company is a juggernaut of any gym. At the time of March 31, 2017, storeholidayhours.org boasted over ten million members inside the United states, Puerto Rico, Canada and also the Dominican Republic. (The International Health, Racquet & Sportsclub Association reports that there were a total of 57.3 million health club members inside the U.S. in 2016.) Planet Fitness saw same-store sales increase 11.1% in the first quarter of 2017-and they’ve focused on opening up one thousand more locations.
Concurrently, mid-market gyms-national gyms like 24 Hour Fitness and Snap Fitness along with regional chains like New York Sports Club and O2 Fitness Club-feel the squeeze. “Collectively, these chains lost 5% with their gym visit share in the last year,” Foursquare reports. The great thing is that Planet Fitness might actually be bolstering the mid-market gyms, not cannibalizing them.
The Foursquare data don’t suggest that those who walked into a Planet Fitness last quarter didn’t also visit other health clubs. Rick Caro, president of Management Vision, Inc., a consulting firm dedicated to the health and fitness industry, noted that some individuals use HVLP clubs like Planet Fitness as being a “second gym.” For instance, a gym-goer may have a family membership in a pricier fitness club for the childcare and the classes…but also fit in with a conveniently located Planet Fitness so she can pop in for a simple go on the elliptical on the way home from work. At just $10 monthly on the low end, a Planet Fitness membership typically won’t break your budget for dedicated exercisers.
Caro says that part of the reason Planet Fitness is performing so well is the fact that they’re opening in smaller communities in which there weren’t quality facilities before, and also the Seeking Alpha website notes that Planet Fitness’s target financial markets are “occasional gym users and those a new comer to fitness.” Because of the company’s affordable price and ubiquity, “Planet Fitness is pulling individuals tfjmzj gym who wouldn’t ordinarily come in,” concludes Jim Thomas, president of Jim Thomas Fitness Management & Consulting.
“That’s a fantastic situation for all if they view it right,” he adds. When they start going to a low-priced gym like Planet Fitness and obtaining results, some members progress to higher-priced gyms to benefit from amenities like yoga classes, fitness consultations, and weight-loss challenges. (Plus they may keep their Planet Fitness membership also if Caro’s “second gym” statement is correct.)