Growth in the fitness market has undoubtedly been built around affordability, but convenience is also key. Low-cost gym operators, such as The Gym Group and PureGym, are increasingly focusing on retail parks and other OOT locations, providing easy access for consumers both at home and in the office.
Home exercise gained popularity during the pandemic and there are a myriad of options available. The surge in low-cost gym sites reflects broader fitness trends, with a shift towards "omni-fitness" – a term we’ve coined to describe these choices – referring collectively to options such as exercising at home, in the gym, playing competitive sport or outdoor activities such as running or walking.
Consumers increasingly enjoy a number of these activities, which is why we’ve seen significant growth in value-orientated gyms, as an alternative to more expensive venues where consumers might be more compelled to do all of their exercise in order to justify the cost.
Significant growth in value gym operators in the OOT market has been particularly prominent recently. Pure Gym tops the table as the most acquisitive operator across the retail warehouse market with 25 new openings in 2024; a position it’s held following the 34 it opened in 2023.
With the post-pandemic uptick in hybrid working, having a gym close to both home and work is increasingly important. Many low cost operators allow consumers to use gyms at multiple locations under the same membership, which means the appetite for units in schemes close to where people live, in addition to where they work, is rapidly increasing. Retail parks therefore offer the perfect solution, located OOT and close to the suburbs, they typically offer relatively larger footplates and cheaper rents than on the high street, with easy access and free parking. This convenience means a gym trip can be combined with another journey, such as visiting the supermarket.
The Gym Group has recently appointed Hamish Latchem from Aldi as its chief property officer to drive its accelerated expansion plans. It currently has 241 gyms nationwide with 55 new openings in the OOT market since early 2020. It has two more openings due shortly, and plans to open a further 50 units by 2026. The Gyms Group’s plans are unsurprising given the momentum achieved with membership growth; ending the year 5% up at 891,000, while average revenues generated per member each month rose to £20.81, up from £19.50 the year before.
Alongside The Gym Group, Pure Gym, JD Gyms (four OOT units in 2024) and Bannatyne’s remain in expansion mode, which means we’re likely to average two new openings a month across the OOT market for the next few years.
Interestingly, this has undoubtedly influenced the athleisure market. While consumers are looking for low-cost-no-contract gym membership, they are countering this with a preference for increasingly aspirational gymwear. Collectively, Sweaty Betty and Lululemon are closing on 100 stores nationally; this growth hasn’t gone unnoticed by other upmarket athleisure brands like Alo Yoga, Finisterre, UVU and Represent which are all expected to increase their UK stores.
Looking ahead, the gym market will likely see continued growth in OOT locations, driven by the demand for convenience and affordability. With vacancy so low in the retail warehouse market (4.6% nationally) and therefore opportunities for expansion scarce, the market is likely to see an increase in purpose built standalone or roadside locations to meet operator demand, much like that seen by coffee retailers and drive thru operators in recent years.
.jpg)
.jpg)
.jpg)
.jpg)
