It’s that time of the year when we make our New Year’s resolutions. Exercising more is the top resolution for many people, at least for half of the respondents who said they are making New Year’s resolutions in a 2020 YouGov poll.
Reflecting the desire to get in shape, people buy gym memberships on the heels of New Year. “January and February have always been an important time of the year for the fitness industry,” Chris Rondeau, Planet Fitness’s CEO, told Fortune magazine.
But January gym rush might be a story of the past. In recent years, we’ve seen fitness customers’ shift towards online and outdoor alternatives. This trend accelerated as COVID-19 forced health clubs to shut down or continue in limited capacity in 2020. Bereft of their usual option, fitness beginners and buffs alike turned to YouTube gurus, Peloton bikes, or outdoor activities.
While gym traffic [1] returned to more than 80% of pre-pandemic levels in the summer of 2021, consumers are more aware than ever of the range of options they have to be in shape. Virtual fitness programs seem to have lasting power. According to a recent McKinsey survey, 70 percent of those who used online programs during the pandemic plan to continue using them long-term. Ray Algar, an analyst with Oxygen Consulting, told the New York Times, “The gym may have once had this temporary monopoly, but this is over, and the pandemic has demonstrated that consumers can capably locate and enjoy many different gym substitutes.”
Brick-and-mortar [2] clubs are quick to adapt. Many traditional operators have bundled up different offerings to include a digital experience in their programs, such as on demand or streaming services. Stefan Ludwig, a Deloitte partner, told the New York Times that this hybrid approach will be essential for these businesses to remain competitive.
At the backdrop of this industry transformation, health clubs would have to be creative to take advantage of January’s demand. In the past months of turbulence, the world has been figuring out how to find fitness communities outside the gym.