Why Large Gyms No Longer Have The Muscle To Take On New Gym Concepts
Millennials are changing the face of the fitness industry and taking the hardest hit are large gyms. More and more young individuals are seeking the more specialized fitness studios and dropping their old gym memberships. There has been a noticeable transformation in what individuals are seeking, no longer do they want their old gyms but rather they are gravitating towards boutique studios like Barry’s Bootcamp and SoulCycle, online streaming services like Peloton, CrossFit and many others that are taking the industry by storm. The landscape has changed and no longer are people going to their neighborhood gyms like years past but rather seeking the latest specialized fitness experience. Though many of the larger gyms have gone through a rebranding in an attempt to feel more “boutiquey”, millennials still are driven towards the boutique model where you can pay for a class and have no further commitment allowing for individuals to try many diffident studios and not be tied down and locked into a long-term membership. Variety for this generation is extremely appealing. Additionally, ClassPass and FitReserve are giving people options and flexibility that they didn’t have in the past, giving people the opportunity to use various studios and eliminating being tied to one gym. From an investment standpoint, the old gyms are not a buy from an investment standpoint. With the landscape continuing to change and becoming further focused on boutique gyms and at-home workouts, the larger footprints of the neighborhood gyms is a risky investment.