Oxygen Blog

New London seminar: May 22nd 2012

Low-cost gyms have been operating in the UK since 2006 so they are hardly new. This means the industry has had nearly six years to develop a strategic response, so why is there surprise when they arrive in town, with sometimes terminal consequences for established ‘mid-market’ clubs?

Interactive London seminar

Step out of your business for a few hours to gain a deep understanding of how low-cost gyms compete and begin to develop a clear and compelling strategic response for your business.

Why attend?

• Gain a deep understanding of the low-cost gym consumer proposition

• Understand why consumers are attracted to low-cost gyms

• Discover how ‘mid-market’ clubs are re-evaluating how they compete against low-cost competitors

• Begin the process of developing a clear and compelling strategic response that puts your club on a long-term successful trajectory

Who should attend?

• Club operators wanting a deep understanding of the low-cost model

• Suppliers wanting to understand how their product portfolio fits into a changing industry structure

Presenters/Facilitators

Ray Algar (MBA) Managing Director, Oxygen Consulting

Ray provides strategic business insight to organisations connected to the global health and fitness industry. He has been researching the low-cost gym sector for seven years and is the author of the 2010 UK Low-cost Gym Sector report. In 2011, this was followed by the Global Low-cost Gym Sector report. Ray discusses the low-cost gym sector at various conferences most recently at the IHRSA Convention in Los Angeles.

Adam Campbell (MBA), Strategy Consultant, Telos Partners

Adam is a management specialising in strategy development,     change management and leadership development across a diverse range of sectors within Europe and the Middle East. He has a great passion for and a deep understanding of the health club sector which he developed over a 15 year period working in the industry as personal trainer, educator and operator. During his session, he will help you to understand how to unlock your club’s full potential.

Book your place

Book your place soon to enjoy an early-bird discount.

Today (5th April 2012) the BBC Watchdog programme broadcast its findings into dysfunctional sales practices at Fitness First and LA Fitness.

I watched the programme several times and was left wondering why the Watchdog team love to regularly feature the UK health club industry. Last night the programme found examples of mis-selling and other dysfunctional sales practices. This is what the team found at a cross-section of Fitness First clubs:

‘We sent two researchers to ten branches of Fitness First around the UK to find out just how upfront Fitness First staff are about the contractual small print. In turns out they weren’t very upfront at all.

None of the staff at any of the ten branches we visited offered to show us the terms and conditions. The only times we did see them were when we asked for them. At the Hammersmith branch in London we were even told by a Fitness First employee that the terms and conditions didn’t exist, however, he did eventually produce them but only gave us 33 seconds to read 2,295 words.

Incredibly, in five of the branches we visited, staff even ticked the box on our behalf certifying that we had read the terms and conditions, even though we hadn’t. In two branches they told us that they would send the contract to us – but only after we had signed up.”

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Sales staff seemed to lack belief that the club could deliver long-term value to the member which meant discussions about the contract were inconsistent and opaque.

Well done to Chris Stone, the newly appointed Fitness First CEO who accepted the BBC’s invitation to appear on the programme. This is what he had to say:

“Very sad day to see that kind of behaviour in one of our clubs”

Fitness First has since issued a statement in which it says:

‘We can assure you that we take all feedback that we receive very seriously and are determined to address it. Since Watchdog has highlighted these cases, we have acted promptly to address each of these complaints and have contacted all members to rectify their situations.’

This is what I know for sure; the Watchdog team will be returning and I just hope that next time they look, that they find a better and more customer-centric business.

New London seminar: May 22nd 2012 Low-cost gyms have been operating in the UK since 2006 so they are hardly new. This means the industry has had nearly six years to develop a strategic response, so why is there surprise when they arrive in town, with sometimes terminal consequences for established ...

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Below is a copy of my low-cost gym presentation to delegates attending the IHRSA Convention in Los Angeles during March 2012. Please do leave a comment on the presentation or general comments on low-cost (budget) gyms. What is driving the global low-cost gym sector? View more presentations from Ray Algar

Stunning news developing today that several members of the Fitness First senior management team are being replaced amid growing concerns around the growth prospects for the company. The Telegraph is reporting that Colin Waggett, Chief Executive, Finance Director Duncan Tatton-Brown, and UK Managing Director John Gamble are among the departures. BC Partners ...

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Following the recent publication of my 2011 Global Low-cost Gym Sector Report, Hasse Hoftvedt, CEO of fitness.xpress gyms in Norway contacted me to update me on the expansion of his budget gym business. What follows is a short interview. How did a guy with a degree in Petroleum Engineering from the ...

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I am presently scoping out a new report that investigates the European health club franchising industry. The key report sections are: 1 Strategic analysis of the franchising business model. 2 Interviews with out of industry franchising experts. 3 Interviews with health club franchise CEO's. 4 Detailed club franchise case study. 5 Consumer research. 6 Index of ...

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The Holmes Place clubs in Salzburg and Linz, Austria have been declared insolvent in the Salzburg Regional Court. The total corporate debts are believed to be in excess of €53 million Euros making it one of the state's largest business failures during 2011. It seems as though the clubs have been ...

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News broke last week that a strategic review is underway at David Lloyd Leisure. A 'strategic review' normally denotes that a significant event is underway. David Lloyd Leisure The business operates 89 health and racquets clubs across the UK and Europe and was acquired for £940 million (€1.1 billion Euros) in ...

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Recently, I visited Richard Davis, Director of VirtualGym TV to find out more about the business. Afterwards, I fired off some questions to Richard and below you can read his replies: What does VirtualGym TV stand for? VirtualGym TV 'literally' stands for a virtual gym that you can watch on your TV, ...

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The International Health, Racquet & Sportsclub Association (IHRSA) has just published an article I wrote for their Club Business International (CBI) magazine. The article is titled 'The price of competition' and can be read here: