Young Users Help Fuel Planet Fitness Growth

Planet Fitness noticed a membership growth at its health facilities in the course of the pandemic, helped alongside by teenagers and pre-teens signing up for his or her first health club memberships.
As CNBC reported Thursday (Feb. 24), the corporate’s newly-released fourth-quarter outcomes present that individuals born between 1997 and 2012 — Generation Z — have been the quickest rising demographic group for Planet Fitness memberships final yr.
“This previous September, when faculty sports activities have been in play and recreation facilities have been again open, that didn’t drop off,” CEO Chris Rondeau advised the community.
He added that Gen Z places added emphasis on staying lively and preserving their psychological well being. “They proceed to affix, fairly a bit above pre-Covid ranges.”
Read extra: Peloton’s Fall, Planet Fitness’ Rise Suggest Connected Fitness Boom Is Over
Planet Fitness prices $10 for month-to-month memberships, however Rondeau says about 62.5% of members have upgraded to Black Card, $22.99 a month possibility that lets clients entry any Planet Fitness location in addition to perks corresponding to tanning beds and visitor passes. The CEO mentioned penetration of Black Card members has grown as the corporate opens extra areas.
At the tip of final month, Planet Fitness counted 15.6 million members, which it the corporate says is increased than its pre-pandemic peak.
Planet Fitness first started to note the development of sign-ups by younger members final yr. Rondeau mentioned then that this “is notable, as solely half of the era is even sufficiently old to affix.”
See additionally: Adidas, DraftKings, Planet Fitness See Sports Rebound As Consumers Look To Play Again
Gyms, like many different companies, suffered within the early days of the pandemic, however Planet Fitness and different sports-related operations started to see a rebound final yr, with Planet Fitness including 600,000 new members within the first quarter of 2021.
“We are very inspired by the clear and regular enchancment in general sentiment we witnessed in America in the course of the first quarter and the corresponding impression it had on our enterprise,” Rondeau mentioned final yr.
“We imagine that the constructive headline information on COVID-19 vaccine availability drove a seasonality shift in our membership traits as March membership progress exceeded March 2019, reinforcing our perception that persons are desperate to get again into our gyms.”

About: Forty-two p.c of U.S. shoppers usually tend to open accounts with FIs that make it simple to auto-share their banking particulars throughout sign-up. The PYMNTS research Account Opening And Loan Servicing In The Digital Environment, surveyed 2,300 shoppers to look at how FIs can leverage open banking to have interaction clients and create a greater account opening expertise.

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