After the pandemic is over, 59% of Americans won’t be renewing their gym memberships, according to a recent survey by TD Ameritrade. While many gyms have been closed the past four months, 56% of respondents have found “more affordable” ways to get their workouts in.
Companies within the industry are preparing for a dramatic drop off in revenue as a result, as 53% said they don’t expect sales returning to pre-COVID numbers until the second quarter of 2021, according to a Sports & Fitness Industry Association survey. Fifty-nine percent of those companies also expect consolidation to become a trend in the industry.
Both Gold’s Gym and 24 Hour Fitness have already filed for bankruptcy, while the parent company of New York Sports Clubs and Lucille Roberts warned of potential bankruptcy.
With gym-goers staying home, digital fitness companies have seen a boost.
- Peloton saw revenue grow 66% year-over-year in its latest quarterly report as its connected fitness subscribers grew by 94% in that same period.
- Lululemon paid $500 million to acquire interactive home gym company Mirror, which expects to do more than $100 million in revenue this year.