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

HOW WE DO IT

PROGRESS IN 2020  

 

  • Despite the challenges of the COVID-19 pandemic we have continued to deliver growth in our gym estate, adding eight new sites, including one small box gym.

  • In addition, we have responded to the pandemic quickly and effectively, upgrading our entire estate to be safe, compliant and able to deliver a fantastic gym experience.

  • Our strong covenant has helped us further capitalise on the current distress in the property market, enabling us to secure a good pipeline of high quality sites to open in 2021.

RISK

 

  • Organic rollout
  • Operational gearing
  • Regulatory

PERFORMANCE MEASURES

  • Total number of Gyms +4.6% 
2020 183 gyms
2019 175 gyms

PROGRESS IN 2020 

 

  • In a year defined by COVID-19, our key achievement has been successfully innovating our member experience to deliver improved levels of member satisfaction despite the need to enforce new restrictions.

  • LIVE IT penetration has continued to rise, with 22.5% of members subscribing to the premium product at the end of 2020.

  • We also launched a strategic partnership with the #1 rated fitness app, Fiit, providing on-demand workouts to our members at a 60% discount.

RISK

 

  • Member experience

PERFORMANCE MEASURES

  • 88% satisfaction with measures we have put in place to deal with COVID-19

PROGRESS IN 2020 

 

  • Continued investment into our digital experience has resulted in member app adoption and usage growing significantly. Key new features in our app include contactless entry to our gyms as well as the ability to check how busy the gym is before attending.

  • Timely, open and honest communication has been incredibly important throughout 2020, and our efforts have been highly regarded by members. Our innovative ‘So I can’ campaign has continued to flourish, adapting to changing circumstances and delivering topical messaging that achieves cut-through.

RISK

 

  • IT dependency
  • Data protection
  • Brand reputation

PERFORMANCE MEASURES

  • 400k+ active app users across Q3 and Q4 

PROGRESS IN 2020 

 

  • 2020 has presented a great opportunity for us to re-enforce the unique values of our business, supporting our employees through a difficult year and multiple gym closures.

  • We have invested in two new systems; a colleague engagement platform, CORE, and a learning management tool to support our employees in developing themselves further.

  • Our progress is demonstrated through our reassuringly strong employee engagement measures and our Investors in People (IIP) Gold Award.

RISK

 

  • Attraction and retention of talent

PERFORMANCE MEASURES

 

  • 87% of employees agree that they would recommend us as a great place to work