Business Model and Strategy

33276 Gymgroup TREADMILL FC Landscape

Our unique proposition and proven business model utilise technology and economies of scale to provide a great value member experience, whilst also delivering strong financial returns.

WHAT WE DO

  • Market-leading low cost gym experience drives growth in membership base

  • Significant advantages from scale-efficient model: operations, technology, brand and marketing

  • With scale we can achieve strong financial returns which enable reinvestment to drive further growth

TGG Business Model 2022

HOW WE DO IT

PROGRESS IN 2021  

 

  • We have continued to grow our gym network with the opening of 19 new sites in 2021 whilst continuing to invest in our existing estate to deliver a great member experience.

  • Our adaptable model allowed us to open sites ranging from 7,000 up to 21,000 sq.ft, enabling us to access more locations and therefore expand our addressable market.

  • Our strong covenant has helped us capitalise on the current distress in the property market, enabling us to secure a strong pipeline of high-quality assets from which we plan to open 25 new sites in 2022.

RISK

 

  • Scale of change
  • Operational gearing

PERFORMANCE MEASURES

  • 202 Total number of gyms at 31 December 2021
2021 202 gyms
2020 183 gyms
2019 175 gyms

PROGRESS IN 2021 

 

  • Now more than ever members want flexibility in where, how and when they work out; with no-contract membership, 24/7 access to our gyms and online classes available to follow at home, we have all bases covered.

  • Increasingly, members are also seeing the benefits of our LIVE IT premium membership, which offers access to all of our 200+ sites, with 27.1% of our members now signed up to LIVE IT.

  • Despite having to navigate additional restrictions in our gyms post-reopening, by focusing on service levels our teams delivered the highest ever member service score.

RISKS

 

  • Member experience
  • Reputation, brand and trust

PERFORMANCE MEASURES

  • 64% of members rated us outstanding (5 out of 5) for staff friendliness

PROGRESS IN 2021 

 

  • We demonstrated the power of our marketing and electronic customer relationship management (eCRM) capability in 2021 with record numbers of new joiners after being locked down for more than three months at the beginning of the year.

  • We also invested in new digital marketing platforms to improve the quality of our online advertising, resulting in reduced cost per acquisition (CPA) and increased sign-ups.

  • During the year we also laid the foundations for the launch of a new brand and a new website in 2022.

RISKS

 

  • Reputation, brand and trust
  • IT dependency
  • Data protection

PERFORMANCE MEASURES

  • 55% more re-joiners in April-Dec 2021 versus the same period in 2019

PROGRESS IN 2021

 

  • Our Reset and Recharge programme focused on re-energising our teams ahead of re-opening our gyms; and our LeadWell programme trained employees on topics such as resilience, psychological safety and financial planning.

  • This year we also launched our Equality, Diversity and Inclusion Pledge, which provides clear targets and actions for achieving greater gender and cultural diversity across our business.

  • We were thrilled to be recognised by Glassdoor as one of the top 50 Best Places to Work in the UK and that our colleague support programme was awarded the ‘Most Innovative Response to Covid-19’ at the annual Engagement Excellence Awards.

RISK

 

  • Reputation, brand and trust
  • Our people

PERFORMANCE MEASURES

 

  • #25 ranked company in Glassdoor's 50 Best Places to Work in the UK and the only leisure business to be listed

PROGRESS IN 2021 

 

  • This year we completed a materiality assessment with key stakeholders – including members, employees and shareholders – to understand which sustainability issues were most important to them and we’re now using this feedback to help set priorities for 2022 and beyond.

  • In 2021, we delivered £485 million of social value in communities across the UK with work-outs in our low-cost, accessible facilities contributing to the improved health, wellbeing and educational development of our members.

  • We have set ambitious targets for reducing the carbon impact of our business: reducing by 50% by 2030 and to net-zero by 2035.

RISK

 

  • Reputation, brand and trust

PERFORMANCE MEASURES

 

  • £485m of social value created in 2021