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FitNet Commercial
July 2nd, 2009

Health Clubs Report Q1 Declines, Growth Over Q4 ‘08

BOSTON - Statistics from The International Health, Racquet and Sportsclub Association’s (IHRSA) “2009 First Quarter Index” show that the financial performance of commercial health clubs struggled in the first quarter of 2009 relative to the first quarter of 2008. The sample included 18 leading U.S. health and sports club companies, representing a total of 530 facilities. In spite of overall wavering performance, select clubs experienced improved performance in the same time period. Participating clubs indicated growth from the fourth quarter of 2008 to the first quarter of 2009.

Overall, Quarterly Index participants reported decreases in total sales, membership revenue, and non-dues revenue from first quarter of 2008 to first quarter of 2009. Total sales decreased by 3.6 percent from $7.8 million in 2008 to $7.3 million in 2009. Membership and non-dues revenue also decreased by 1.0 percent and 8.1 percent, respectively. Total membership accounts increased by a modest 1.2 percent. Although respondents collectively struggled with first quarter performance, some participants reported improvements. The majority of respondents (56 percent) reported increases over one percent in total membership accounts, while only 33 percent reported similar increases in total membership dues revenue.

“Non-dues revenue can be expected to fluctuate as consumers limit their discretionary spending,” said Katie Rollauer, IHRSA senior manager of research. “However, the low single digit decline in membership accounts and revenue, relative to other retail industries, demonstrates the resilient nature of the club industry during a recession.”




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