It is estimated that between 2008 and 2018 gym membership grew by 37.1% in the US alone*. Closer to home in the UK, membership finally broke the 10 million mark this year, meaning one in every seven people are currently members of a gym.**
With January being the peak month for new gym memberships as many of us look to shake off the excesses of the festive period, Craig Bonthron and Neil Goddin, co-managers of the Kames Global Sustainable Equity Fund look at the fitness stocks they believe will help get your finances in shape.
Goddin says: “European gym group Basic Fit offers a low-priced gym format, with market share just below 10%. The company is run by founder and former tennis player Rene Moos, and has clubs spanning Holland, Belgium, France and Spain – countries which are under penetrated versus the UK – with high growth expected in latter two countries. Like other gym franchises, Basic Fit is currently benefitting from lower rents due to problems suffered by bricks and mortar retail.”
Bonthron says: “US gym group Planet Fitness is a disruptive low-price gym, offering prices starting at around $10, much lower than its competitors. The group is targeting the 80% of Americans that don’t go to the gym, particularly focussing on increasing female membership and attracting those low in confidence. The gyms offer “No Judgement Zones” and “No Gymtimidation” messaging in its sites as it seeks to get away from the old image of a meathead throwing weights around!”
Bonthron says: “Like seemingly all successful businesses (think Amazon, for example), Technogym started life in someone’s garage and grew under the passion and drive of a visionary leader. Today the company, which manufactures a full range of fitness equipment from treadmills and static bikes to weights machines and benches, is well-run with high returns on invested capital, an enduring brand and attractive opportunities to continue to grow in markets including the US and China. The company has also recently launched its own direct to consumer service and has a current market cap sitting at around half of the estimated value of the recently floated Peloton suggesting there is plenty of opportunity for further growth at current levels.”
** Source: Leisure DB: https://www.leisuredb.com/2019-fitness-press-release