Gyms in the UAE have bounced back from the global coronavirus pandemic in better shape than ever as the industry adapts to a new normal that experts agree will be a continuation of the hybrid model, which has helped them in their return to full fitness.
Fitness clubs and gyms were among the first to be ordered to close their doors ahead of a nationwide lockdown last year aimed at curbing the spread of Covid-19. The 72-day shuttering forced operators to innovate and, with clubs lying dormant, many took their offerings online.
Glen Stollery, CEO of Les Mills, India, Middle East and Africa, told the inaugural Fitness Leaders Business Breakfast, presented by Dubai Active Industry, that of the 21,000 clubs they support globally, 90 percent were closed. “In fact, the only ones that were open were in China ironically,” he said.
He explained that, according to a global survey they ran, pre-Covid, only 25 percent of clubs across the world had some kind of at-home solution for members – now that number is up at 72 percent.
He said: “There’s been a really big ramp up in that space. We really do see the future as being hybridisation.”
A further study carried out by the company revealed 93 percent of people were looking to get back training physically in clubs, with 25 percent still lacking confidence to do so, amid continued concerns over safety.
While it was admitted that much of the early online exercise videos were “raw” in their production – filmed using mobile telephones from various parts of the house, Stewart Millar, CEO of The Platform Dubai, explained how they installed cameras in fitness studios and introduced an on-site editing suite, so when the business reopened in June last year, they were able to film live classes with live audiences.
He said: “We were forced into the situation in March and our team stepped up. At the very beginning we were filming with phones in the room. We very quickly improved the product to the point that we were earning revenue online. We didn’t offer it for free because we wanted to keep the business open, keep the trainers employed and keep out team together.
L-R: Glen Stollery, CEO of Les Mills, India, Middle East and Africa; Dan Duran VP of International & Group Partnerships, ISSA; George Flooks, CEO of Fitness First Middle East and North Africa; Hayley Cottan, head of commercial at AKI Fitness; Loren Holland, CEO of Gymnation and Stewart Millar, CEO of The Platform Dubai
“In the process the members started to enjoy it as well, they really started to engage and they started to realise that a couple of times a week working out on a mobile device was massive and it supplemented their workouts, so when we reopened we were filming 20 classes a day when we were closed and when we reopened we brought it down to 10 classes.”
The onset of coronavirus and implementation of lockdown measures saw bedrooms and dining rooms completely transformed into offices, classrooms and DIY gymnasiums, with treadmills and exercise bikes crammed into corners alongside rowing machines, yoga mats and a myriad of other pieces of equipment.
Hayley Cottan, head of commercial at AKI Fitness, said a market study they conducted, looking at 2019 compared to 2020, showed the home market grew by over 140 percent against the commercial market, which declined in different segments by between 30-40 percent.
She said: “Going into 2021 it’s already starting to look a lot different. Thankfully we are seeing a recovery in the commercial space and interestingly enough there is a taper off now of the consumer sales, although they are still higher than they were.”
Loren Holland, CEO of Gymnation, said they quickly partnered with Les Mills On Demand – online videos with over 1000 workouts from the most popular Les Mills programs – and witnessed around 15,000 downloads over the 60-day period.
“We opened that portal up to our members and our non-members. It enabled us to keep our members active, keep them engaged in fitness, which meant that when the business reopened, when lockdown ended, they were straight back into the facilities,” he said.
And that was very much the case as he revealed the pent-up demand from those who had missed that gym experience, helped drive a huge surge in memberships – at the start of the year the company had one gym and 10,000 members; by the end of the year they had seven gyms and 40,000 members.
“I think part of it was, after lockdown had finished, people just realised they were no longer going to take their health and fitness for granted. So one of the big features we saw, we had a database of leads where people had enquired about a gym membership and for whatever reason they hadn’t purchased. Those people were coming back to us in droves and saying they were no longer taking it for granted, they were willing to join,” he said.
“All of our gyms suffered a big decline in the first few weeks but then that was more than made up for.
“We made the bold decision to just push our chips in, we expected there would be a boom in the market. We approached our investors and said we wanted to commit to opening four gyms immediately after lockdown, so we embarked on a massive capex programme and ultimately that’s how we saw the membership base drive to 40,000 by the end of the year.”
And he said further ambitions were to open another five clubs and, in the next five years, become the number one GCC fitness brand, while they are also targeting leases in three international markets this year.
George Flooks, CEO of Fitness First Middle East and North Africa, was similarly bullish about the future, with forecasted ten percent like-for-like revenue growth this year.
He said: “Let’s not mess about, you’ve got to put cash in the till and ultimately that’s what’s going to help you expand, that’s what’s going to help you build bigger studios and as your estate gets bigger, you need cash to refurb, to stay relevant.”
He added that the company will be fully digitised by September 1, which includes the launch of Fitness First On Air, with a library of around 350 videos; and the launch of its own ecommerce platform.
“You’ve got to be able to look after your customers and create an experience for them that keep them coming back. That’s not unique in the industry, you’ve just got to do it really well,” he said.
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