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.