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Gymbox CEO, Marc Diaper, calls on government to give financial support to city centre gyms due to home-working guidelines
POSTED 16 Dec 2021 . BY Tom Walker
Diaper said that footfall had fallen by 10 per cent since the work from home edict Credit: Reuters
The government's working from home guidelines are threatening the financial future of city centre health clubs
It is feared that "Plan B" will have an adverse impact on what is traditionally the fitness sector’s busiest and most lucrative time of the year
Clubs located in town and city centres will be particularly badly affected, as they rely on commuters for business
Speaking to HCM, Gymbox CEO Marc Diaper said footfall was already "down by 10 per cent"
The UK government's working from home guidelines are threatening the financial future of city centre health clubs and gyms, according to some operators.

Under the government's Plan B, people should now work from home "if they can" – with guidance being reviewed on 5 January, although this is not mandatory.

The timing means new year trading, which gives a boost to the sector, may be impacted.

Speaking to HCM, Marc Diaper, CEO of Gymbox – which runs 11 London studios – said the sector has already seen a drop in footfall and is in need of "urgent financial help" to counter the damage caused by the work from home advisory.

"The latest government guidance will see footfall reduced within the City," Diaper said.

"This has already had an impact on usage, with some businesses and offices that had returned sending their workers back to full-time home working.

"Since reopening in mid-April, we’ve experienced month-on-month improvements in the number of people using our gyms – we had hit 70 per cent of pre-pandemic usage across the group.

"However, since the government's announcement last week, footfall has dropped by 10 per cent – and we’re expecting it to drop even more, as businesses digest the information.

"It's not just London, of course – many businesses that rely on footfall in other cities around the country will suffer.

"While I appreciate the pandemic is difficult for the government to navigate and it wants to slow the spread of the virus, the recommendation to work from home has to come with additional financial packages of support, or I can see even more gym closures with the loss of jobs across the sector."

Diaper added that operators with strong ties to corporate clients and members will also be severely affected.

"While residential clubs in London were returning to pre-COVID-19 numbers much quicker, the city clubs were already being hugely impacted by corporate clients who have either never returned to the office, or those that have only returned a couple of days a week," Diaper said.

"Over the past 19 months, while some had gradually returned, many of our corporate clients have continually delayed the return to the office, as they feared further restrictions or lockdowns may occur."

Diaper also detailed the type of financial help he would like to see the sector receive.

"While I appreciate moving forward businesses will need to look at their property location strategies and adapt to office workers' potential new patterns of working, this doesn’t solve the issue for thousands of businesses right now. The government has created a problem with its new guidance and there needs to be a financial support package put in place.

"This could include a review of VAT – much like the hospitality sector received – an extension of business rates relief and additional grants.

"Though we have agreed on rent concessions with landlords, many businesses haven’t and this needs to be resolved with the moratorium coming to an end in the New Year.

"We’re approaching a crucial time for our sector. We were closed for the whole of Q1 this year and these restrictions will mean a very challenging start to 2022.

"We’ve all worked hard and spent millions on safety and cleanliness protocols and we’ve proved we’re safe with less than 1 case per 100,000 users.

"We’re essential for many members – for both their physical and mental health – and those that are city-based have just had their businesses majorly affected.

"The government has effectively taken business away with no solution for support and this needs addressing urgently."
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NEWS
Gymbox CEO, Marc Diaper, calls on government to give financial support to city centre gyms due to home-working guidelines
POSTED 16 Dec 2021 . BY Tom Walker
Diaper said that footfall had fallen by 10 per cent since the work from home edict Credit: Reuters
The government's working from home guidelines are threatening the financial future of city centre health clubs
It is feared that "Plan B" will have an adverse impact on what is traditionally the fitness sector’s busiest and most lucrative time of the year
Clubs located in town and city centres will be particularly badly affected, as they rely on commuters for business
Speaking to HCM, Gymbox CEO Marc Diaper said footfall was already "down by 10 per cent"
The UK government's working from home guidelines are threatening the financial future of city centre health clubs and gyms, according to some operators.

Under the government's Plan B, people should now work from home "if they can" – with guidance being reviewed on 5 January, although this is not mandatory.

The timing means new year trading, which gives a boost to the sector, may be impacted.

Speaking to HCM, Marc Diaper, CEO of Gymbox – which runs 11 London studios – said the sector has already seen a drop in footfall and is in need of "urgent financial help" to counter the damage caused by the work from home advisory.

"The latest government guidance will see footfall reduced within the City," Diaper said.

"This has already had an impact on usage, with some businesses and offices that had returned sending their workers back to full-time home working.

"Since reopening in mid-April, we’ve experienced month-on-month improvements in the number of people using our gyms – we had hit 70 per cent of pre-pandemic usage across the group.

"However, since the government's announcement last week, footfall has dropped by 10 per cent – and we’re expecting it to drop even more, as businesses digest the information.

"It's not just London, of course – many businesses that rely on footfall in other cities around the country will suffer.

"While I appreciate the pandemic is difficult for the government to navigate and it wants to slow the spread of the virus, the recommendation to work from home has to come with additional financial packages of support, or I can see even more gym closures with the loss of jobs across the sector."

Diaper added that operators with strong ties to corporate clients and members will also be severely affected.

"While residential clubs in London were returning to pre-COVID-19 numbers much quicker, the city clubs were already being hugely impacted by corporate clients who have either never returned to the office, or those that have only returned a couple of days a week," Diaper said.

"Over the past 19 months, while some had gradually returned, many of our corporate clients have continually delayed the return to the office, as they feared further restrictions or lockdowns may occur."

Diaper also detailed the type of financial help he would like to see the sector receive.

"While I appreciate moving forward businesses will need to look at their property location strategies and adapt to office workers' potential new patterns of working, this doesn’t solve the issue for thousands of businesses right now. The government has created a problem with its new guidance and there needs to be a financial support package put in place.

"This could include a review of VAT – much like the hospitality sector received – an extension of business rates relief and additional grants.

"Though we have agreed on rent concessions with landlords, many businesses haven’t and this needs to be resolved with the moratorium coming to an end in the New Year.

"We’re approaching a crucial time for our sector. We were closed for the whole of Q1 this year and these restrictions will mean a very challenging start to 2022.

"We’ve all worked hard and spent millions on safety and cleanliness protocols and we’ve proved we’re safe with less than 1 case per 100,000 users.

"We’re essential for many members – for both their physical and mental health – and those that are city-based have just had their businesses majorly affected.

"The government has effectively taken business away with no solution for support and this needs addressing urgently."
RELATED STORIES
COVID in Europe – health club operating restriction update


Increases in COVID-19 cases across Europe are forcing governments to introduce restrictions, which is having an impact on some parts of the Continent's health and fitness market.
FEATURE: Everyone’s talking about: Studio bounceback


Following our update on bounceback in the big-box market last month, we talk to studios about how they’re trading
Gyms in England to reopen when lockdown ends – and remain open, even in Tier 3 areas. Group ex singled out for restrictions


Gyms, health clubs and leisure centres will be able to open their doors when the current lockdown measures in England come to an end on 2 December.
MORE NEWS
Immediate rewards can motivate people to exercise, finds new research
Short-term incentives for exercise, such as using daily reminders, rewards or games, can lead to sustained increases in activity according to new research.
RSG opens flagship John Reed in Berlin, as its builds out its 'world city' portfolio
With the launch of its 49th John Reed, RSG Group is looking for more opportunities for its high- end brand in the US and Europe, but is pausing UK expansion.
PureGym's new results set it up for accelerating growth
PureGym saw revenues rise by 15 per cent in 2023, with the company announcing plans to develop 200 new clubs in the next three to four years.
Deloitte says European health club market hit an all-time high for revenues in 2023
Following three disrupted lockdown years, the European fitness market bounced back in 2023, according to Deloitte and EuropeActive’s hot off the press European Health & Fitness Market Report 2024.
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Study Active has legally acquired the name “Premier Global” and select Premier Global branding assets from Assessment Technologies Institute LLC, part of Ascend Learning in the US. [more...]

Webinar: Building a new energy future for the leisure sector
As one of the most energy-intensive industries in the UK, leisure facilities face a critical challenge in balancing net zero goals, funding and increased costs. [more...]
+ More featured suppliers  
COMPANY PROFILES
Keiser UK LTD

For more than four decades, Keiser has influenced the training of athletes, fitness enthusiasts an [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

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+ More directory  
DIARY

 

23-25 Apr 2024

ISPA Conference 2024

Phoenix Convention Center, Phoenix, United States
28-30 Apr 2024

Spa Life Scotland

Radisson Blu Hotel, Glasgow,
+ More diary  
 


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