As traditional gyms face financial struggles, the fitness industry is undergoing a significant transformation to attract a new generation of members. Legacy, a South Florida-based gym chain, exemplifies this shift with its vibrant and engaging approach to fitness.
For decades, gyms have been synonymous with lifting weights, running on treadmills, and quick showers. However, to stay relevant, many workout destinations are now redefining the gym experience. These new models include specialized fitness approaches like boot camps or Pilates and even “posing rooms” designed to appeal to the influencer crowd.
This evolution comes at a critical time, as even established gym chains are feeling the financial strain. Blink Fitness, a prominent New York-based gym chain owned by Equinox, recently filed for Chapter 11 bankruptcy and is seeking a buyer. Blink isn’t alone; Gold’s Gym, a brand that gained fame during the bodybuilding boom of the ’70s and ’80s, also filed for bankruptcy in 2020 during the coronavirus pandemic, although it has since re-emerged under new ownership.
Industry experts believe that gyms must innovate to attract Gen Z and other potential members. Chris Gilbert, CEO of Gym Informer, a website that reviews locally owned fitness centers, emphasized that the old model won’t suffice. “People are just not willing to pay for a boring gym,” Gilbert told MarketWatch.
Examples of these “unboring gyms” abound. Core24, a gym with locations in South Carolina and North Carolina, positions itself as “the destination for modern fitness culture.” In addition to workout equipment, the gym features edgy signage like “Enjoy ur f—ing workout.”
Another example is Legacy, where owner Manning Sumner defies traditional gym layouts by placing the aerobics-class area front and center to create energy. Legacy also distinguishes itself with its Partner Interval Training (PIT) regimen, designed to enhance speed, power, endurance, and metabolic rate.
Many fitness centers have found success by targeting niche markets. Solidcore, a Pilates-focused gym launched about a decade ago, specifically targeted women over 40. The gym grew to 100 locations and was acquired last year by a private-equity firm, earning founder Anne Mahlum a reported $88.4 million. Mahlum believes that niche offerings are key to success in the fitness industry. “You need to have a unique offering,” she said, adding that despite the pandemic-driven rise in at-home fitness options, people still value the social aspect of physical gyms. “They say, ‘It’s my social hour,’” Mahlum noted.
The rise and fall of Peloton, once a darling of the fitness world with its exercise bikes and at-home workout programs, further illustrates the industry’s volatility. Despite its early success, Peloton has faced financial difficulties, with its stock falling 91% during the tenure of former CEO Barry McCarthy. The company declined to comment for this article.
The challenges faced by traditional gyms like Blink and Peloton reflect broader industry trends. The pandemic disrupted the fitness industry, forcing gyms to close and leaving many in a weakened financial state. Even with COVID-related restrictions lifted, many gyms struggle to regain their footing. Arielle Rose, an analyst with market-research firm IBISWorld, noted that the pandemic disrupted the continuity of the industry, leaving many gyms struggling to recover.
Economic pressures have also affected gyms, as inflation has led consumers to cut back on non-essential expenses, including gym memberships. However, some gyms have found success by offering affordable pricing. Planet Fitness, known for its $10-a-month memberships (now $15 for new members), added 1.7 million members in 2023, bringing its total to 18.7 million. Simeon Siegel, managing director of equity research with BMO Capital Markets, noted that Planet Fitness’s success shows that the right pricing strategy can attract customers.
As the fitness industry continues to evolve, it’s clear that traditional gyms must adapt to new trends and consumer demands to survive and thrive. Whether through innovative design, niche offerings, or competitive pricing, the future of fitness lies in embracing change.
