Gyms Remain a Must-Have as Consumers Look to Cut Spending
Three-quarters of consumers plan to increase or maintain the frequency of their gym visits despite financial pressures.
As inflation drives up the cost of living, consumers are preparing to cut back on spending, but they aren’t quite ready to give up their gym memberships.
According to a recent survey by CBRE in the United Kingdom, more than three-quarters of respondents have seen an increase in money flowing out and 38% are planning to decrease or stop social activities at some point this year as a result. However, 73% of respondents said they plan to increase or maintain the frequency of their gym visits even though a similar percentage are feeling neutral or somewhat worse about their personal finances.
This is a departure from consumer reaction to the Global Financial Crisis, during which gym memberships fell as individuals cut discretionary expenses, the report noted.
In fact, younger respondents – those between ages 16 and 24 years old – plan to increase the frequency of their gym visits, which highlights the importance Gen Z places on health, well-being and social engagement. The importance of maintaining gym memberships is persistent across all age groups, a signal that gyms are considered an essential social and wellness pass time, particularly as work from home has become more prevalent, said CBRE. Respondents were more willing to reduce or stop visits to restaurants and casual dining outlets, entertainment and competitive socializing to contend with increasing costs.
Gyms at the luxury end of the spectrum are showing the strongest recovery with added spas, racquets and outdoor pool facilities that cater to the whole family as well as singles people. It’s evidenced by the renewal of annual contracts despite the growth of the budget model with flexible monthly subscriptions. Boutique urban workout classes are feeling more of a squeeze in the current economic environment. The report noted that if consumers don’t see value in their gym membership and opt-out, they are unlikely to rejoin.
CBRE noted that gym memberships are broadly comparable to pre-COVID levels. The surge in at-home workouts and health and fitness apps did not stick following the pandemic, although the focus on health and wellness did, the report said.