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Saturday, July 12, 2025

Gym Struggles

Planet Fitness
Photo Credit: Alyssa Keown-Battle Creek Enquirer via Imagn Content Services, LLC

Prior to the coronavirus pandemic, retail real estate companies banked on solid performance from gyms. Gyms filled large footprints and offered a service that was hard to replicate online, while drawing in ancillary businesses like spas and healthy food and beverage options.

But with the population trying to stay away from each other, gyms are struggling. Several gym chains have filed bankruptcy including Gold’s Gym International and 24 Hour Fitness, stemming from months without gym-goers. One landlord said he has received 37% of fitness-sector rent payments the past few months.

As gyms remain closed, there’s an exploding trend of at-home fitness options – including Peloton, which reported a 66% increase in quarterly sales in May – and a growing hesitancy from members to head the gyms that are open as a pandemic surges around them. The week of June 11 saw fitness-sector foot traffic down 57% year-over-year, while other retail chains recovered approximately 80%.

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