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Deloitte report: impact of COVID-19 on the European fitness market
30 Sep 2020 . BY Tom Walker
Accelerated digitalisation and new hybrid club models are among the pandemic's long-term impacts
Photo: Shutterstock.com/insta_photos
This research supports some optimism for the recovery and future of our sector
– Herman Rutgers
European fitness operators will face increased consolidation, accelerated digitalisation and the new reality of creating hybrid models due to the COVID-19 pandemic, according to a large-scale report by Deloitte.

Published today at the European Health & Fitness Forum (EHFF), the Covid-19 Impact Study, examined the pandemic's short- and longer-term impacts on European fitness club operators.

Deloitte gathered information from European multi-site gym operators regarding various elements of their business and used the data as a basis for an assessment of the impact of the pandemic.

The report's findings suggest that, as well as the three main impacts (digitalisation, consolidation and hybrid models), the sector is also switching its focus to refinancing and building stronger balance sheets, as well as rethinking overall business strategies.

As for economics, the report – commissioned by EuropeActive – states that it is "impossible" to make accurate, long-term predictions, partly due to infections currently being on the rise across the Continent and with further lockdowns possible.

However, there is an expectation among multi-site operators that they will bounce back to pre-COVID levels 'by end of 2021'.

This is reflected in the overall confidence of major European club operators, who consider their existence to be "only partially endangered", assuming there are no further forced club closures.

None of the operators questioned for the report stated that their existence was – or will be – either "severely" or "highly threatened" over the next five years (until 2025).

“This research supports some optimism for the recovery and future of our sector which was confirmed by the positive indications from investors and analysts who committed to our larger European operators," said Herman Rutgers, the report's co-editor and EuropeActive project leader.

"It is clear that fitness must be considered as a strategic part of the solution, and not as a problem.

"We already have good data from over 20 million visits to health clubs that they are safe places to go to, with extremely low levels of traceable COVID-19 infection.”

Andreas Paulsen, executive director of EuropeActive, added: "For all parts of the ecosystem of the European fitness and physical activity sector, the past months since the beginning of 2020 have been unprecedented.

"Early on during the lockdown some industry leaders expressed that our sector was changing for good.

"Although 2020 has been incredibly demanding for our industry – indeed for most parts of society – we also saw our sector coming together like never before, in a united fashion through EuropeActive and our national association partners, to deliberate on solutions for our sector’s future, to collegially share best-practice, and to run campaigns like the #BeActive Hour."

As well as charting the long-term impacts of the pandemic, the Deloitte report offers insights into consumer confidence, membership shortfalls and the direct impact of closures on operators.

It also includes detailed overviews on individual countries and a number of selected operator case studies.

The Covid-19 Impact Study can be purchased from the EuropeActive Knowledge Centre (click here).
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PRODUCT NEWS
Deloitte report: impact of COVID-19 on the European fitness market
30 Sep 2020 . BY Tom Walker
Accelerated digitalisation and new hybrid club models are among the pandemic's long-term impacts
Photo: Shutterstock.com/insta_photos
This research supports some optimism for the recovery and future of our sector
– Herman Rutgers
European fitness operators will face increased consolidation, accelerated digitalisation and the new reality of creating hybrid models due to the COVID-19 pandemic, according to a large-scale report by Deloitte.

Published today at the European Health & Fitness Forum (EHFF), the Covid-19 Impact Study, examined the pandemic's short- and longer-term impacts on European fitness club operators.

Deloitte gathered information from European multi-site gym operators regarding various elements of their business and used the data as a basis for an assessment of the impact of the pandemic.

The report's findings suggest that, as well as the three main impacts (digitalisation, consolidation and hybrid models), the sector is also switching its focus to refinancing and building stronger balance sheets, as well as rethinking overall business strategies.

As for economics, the report – commissioned by EuropeActive – states that it is "impossible" to make accurate, long-term predictions, partly due to infections currently being on the rise across the Continent and with further lockdowns possible.

However, there is an expectation among multi-site operators that they will bounce back to pre-COVID levels 'by end of 2021'.

This is reflected in the overall confidence of major European club operators, who consider their existence to be "only partially endangered", assuming there are no further forced club closures.

None of the operators questioned for the report stated that their existence was – or will be – either "severely" or "highly threatened" over the next five years (until 2025).

“This research supports some optimism for the recovery and future of our sector which was confirmed by the positive indications from investors and analysts who committed to our larger European operators," said Herman Rutgers, the report's co-editor and EuropeActive project leader.

"It is clear that fitness must be considered as a strategic part of the solution, and not as a problem.

"We already have good data from over 20 million visits to health clubs that they are safe places to go to, with extremely low levels of traceable COVID-19 infection.”

Andreas Paulsen, executive director of EuropeActive, added: "For all parts of the ecosystem of the European fitness and physical activity sector, the past months since the beginning of 2020 have been unprecedented.

"Early on during the lockdown some industry leaders expressed that our sector was changing for good.

"Although 2020 has been incredibly demanding for our industry – indeed for most parts of society – we also saw our sector coming together like never before, in a united fashion through EuropeActive and our national association partners, to deliberate on solutions for our sector’s future, to collegially share best-practice, and to run campaigns like the #BeActive Hour."

As well as charting the long-term impacts of the pandemic, the Deloitte report offers insights into consumer confidence, membership shortfalls and the direct impact of closures on operators.

It also includes detailed overviews on individual countries and a number of selected operator case studies.

The Covid-19 Impact Study can be purchased from the EuropeActive Knowledge Centre (click here).
PRODUCT NEWS
Funxtion collaborates with global experts on white paper exploring digital in the future of fitness
In collaboration with ukactive, FunXtion has driven a global discussion with some of the world’s leading fitness operators and influencers, exploring how digitalisation will influence the delivery of fitness services and products moving forwards.
Primal Strength bolsters Scottish expansion with Matrix Fitness distribution win
Matrix Fitness has announced an exclusive partnership with Primal Strength to target an increased strategic focus on the Scottish market.
Anytime Fitness partners with Gympass across UK and Ireland
Anytime Fitness, the UK’s leading 24/7 high-spec gym operator, has partnered with Gympass to give its corporate members access to over 170 clubs across UK and Ireland.
Not all fitness content is equal
With the launch of 22 SERIES, a pioneering, new cardio line powered by iFit® – the world’s leading on-demand fitness streaming platform – Freemotion Fitness aims to change the way we think about – and deliver – fitness content to truly engage members.
Active IQ launches End-point Assessor qualification
Active IQ has launched its Level 3 Award in Understanding the Development and Delivery of End-point Assessment to meet the increasing demands for skilled assessors in this emerging area.
Dr Paul Bedford announces Retention Convention will go virtual for 2020
Global retention expert, Dr Paul Bedford, will host his sixth annual Retention Convention virtually, bringing together global speakers to form a documentary-style event around turning customers into communities.
The Shredquarters partners with Physical Company partners to underpin expansion plans
Functional training gym, The Shredquarters, has moved into franchising, partnering with Physical Company to support its rapid growth.
Converting members in January has never been so simple with Volution’s new Lead Generation tool
Volution – the leading data solutions specialist for the fitness industry – has launched a Lead Generation tool that enables operators to harness the power of mobile technology and cloud-based infrastructure to streamline sales.
Cryotherapy specialists, L&R Kältetechnik, launch new artofcryo.com division
L&R Kältetechnik has launched a new division, named artofcryo.com, after 30 years’ experience with -110 °C electrical solutions.
Club Industry and Sibec unveil Future of Fitness virtual event to help reinvent the fitness industry
The COVID-19 pandemic has temporarily halted opportunities to gather in-person to discuss vital topics relating to the fitness industry’s future.
Core unveils Nautilus fit-out at the largest gym in South-West UK
Core Health & Fitness, an industry leader in commercial fitness products, has revealed a partnership with BodyWorld Plymouth, a newly named Nautilus Trusted Strength Centre.
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COMPANY PROFILES
Keiser UK Ltd

We relentlessly pursue solutions that push the limits of fitness science. Better science. Better [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

VIDEO GALLERY

FreeMotion Fitness - Freemotion FUSION Team Training
The High-Intensity Cardio-Strength Training. Find out more...
+ More videos  

DIRECTORY
+ More directory  
DIARY

 

23-25 Nov 2020

Scotland Reconnect 2020

Virtual Event,
24-25 Nov 2020

Spa Life International (UK)

Virtual Event,
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media, Portmill House, Portmill Lane,
Hitchin, Hertfordshire SG5 1DJ Tel: +44 (0)1462 431385

©Cybertrek 2020

ABOUT LEISURE MEDIA
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PRINT SUBSCRIPTIONS
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