Growth in the turnover of health and fitness centres is expected to slow to 6.3% this financial year, following average growth of 15% a year over the past five years, according to IBISWorld.
Why? Interest rate rises and the credit crunch is going to affect consumers’ annual $635 million spend on fitness.
Recently, fitness centres, franchised and otherwise, have been proliferating. A survey by direct debit company Ezypay has estimated that of 350 fitness clubs, 22% are less than a year old and 34% are two to five years old.
The biggest industry player, claiming a third of industry revenue, is Fitness First.
Slowing turnover growth is likely to lead to consolidation of fitness centres, IBISWorld’s Australian general manager Robert Bryant told The Australian Financial Review.
You can help keep SmartCompany free for everyone to read
Small and medium businesses and startups have never needed credible, independent journalism and information more than now.
That’s our job at SmartCompany: to keep you informed with the news, interviews and analysis you need to manage your way through this unprecedented crisis.
Now, there’s a way you can help us keep doing this: by becoming a SmartCompany Supporter.
Even a small contribution will help us to keep doing the journalism that keeps Australia’s entrepreneurs informed.
And it’s not all one-way traffic either. SmartCompany Super Supporters get to dial into our monthly editor’s meeting and attend a monthly, invite-only webinar with a big-name entrepreneur.