Specialty fitness is out, budget-friendly fitness is the new trend. Local intelligence company Foursquare is reporting that 1 in 5 high-end yoga & pilates studios closed between 2015-2016, visits to cycling studios were down 30% YOY during the same time period and mid-market gym chains (like CLUB) lost 5% of their visit share over the last 12 months. The one company seeing growth? Planet Fitness (PLNT). With 10 million members, 1,300 locations and plans to open another 1,000 locations, the company with memberships as low as $10/month grew its membership by 8% over the last year. 25% of gym users in the U.S. are now members.
A budget-friendly gym is trouncing $40 boutique fitness classes and luxury gyms alike
Howie Long-Short opines: The low-cost, franchise model has enabled rapid growth. But does it have staying power? This has been a battleground stock since the 2015 IPO.
Fan Marino says: Makes sense. I’d rather spend $10/mo. to not work out, than $40+. The wife is into Orange Theory. It pains me to see $319/mo. (price for unlimited in NYC) on the credit card.