Health clubs keep fit during sluggish economy

By Patricia Reynolds

Today’s questionable economy presents challenges for most businesses, especially those providing products and services that may be viewed as non-essential. Because household entertainment expenditures can dip when the uncertainty of future income is high, businesses commonly associated with leisure pursuits may experience sluggish sales.

Flux in the marketplace, however, does provide unique opportunity for these types of enterprises. Health and fitness centers, for example, are viewed as recreational facilities by some while others see them as necessities. During economic downturns, successful fitness-related businesses strengthen the perception that maintaining health through center membership is neither discretionary nor a form of entertainment, but rather an essential element of everyday life.

“The key to fighting uncertain times, then, is to ensure that your products or services are viewed as essential,” Colin Milner, chief executive officer of the International Council on Active Aging said in his article Fighting the Recession with Older Adult members.

Past fitness industry performance during troubled economic periods suggests that segments of the population will continue to focus on health to alleviate stress. The fitness boom of the 1970s and 1980s saw an enormous growth in fitness center membership as people sought to achieve sleek bodies and develop social connections. With the onset of a potential recession during the late 1980s and early 1990s, pundits predicted a shake-out of the industry with people foregoing club memberships to ease household budgets.

What actually transpired was indeed a thinning of the number of available fitness facilities, but not a decline in overall membership. In contrast, membership continued to grow throughout the 1990s and into the new millennium. Today, the $18.5 billion fitness industry consists of 41.5 million health club members visiting 29,636 facilities nationwide, according to the International Health, Racquet and Sports Club Association (IHRSA).

This growth in membership was strongest among older adults. IHRSA data show that club membership among people 55 years and older grew to 8 million in 2005, a 314% increase from 1990.

Milner believes that targeting the fitness market’s aging adult segment during a slow economy is the secret to a health club’s success. He says that older adults not only account for 50% of all purchases, but nine in ten people over the age of 65 have chronic conditions that can be treated or alleviated through exercise.

“At a time when discretionary income is tight, the population most likely to view a fitness membership as a necessary expense is older adults,” he said.

Serving older clientele isn’t anything new for long-time local fitness centers. Brenda Athletic Clubs (BAC) and the SOS Club have offered services to area residents since 1978 and 1957, respectively, and currently provide group yoga, strength, and cardio exercise classes, water aerobics, and personal training targeted to senior clientele.

While Milner suggests that America’s aging population is the most likely to view fitness as essential, SOS and BAC focus attention on other market segments as well. Indeed, IHRSA 2005 data show that people 55 and older make up 20% of the market. The remaining 80% consists of children, families, and individuals aged 6-54.

“Our goal will always be to focus on the families. The SOS Club is built to meet and exceed every need a family would want in a health club,” said Phil Madriaga, General Manager and CEO of the SOS Health Club in Modesto.

Madriaga says his club caters to families, providing a broad range of health, fitness, sport, and social programs to this market segment. The 6-acre facility services its members with 3 swimming pools, 7 tennis courts, 2 indoor basketball courts, and 7 indoor handball and racquetball courts. Aerobics classes, the Kids Sports Summer Camp, restaurant, banquet facilities, and sports league all target the family.

“The SOS is definitely the leader in offering a variety of fitness options while doing it in a clean and comfortable facility that caters to families,” he said.

Randy Price, Executive Director of Brenda Athletic Clubs says that while the family is BAC’s primary target, the club recently took steps to broaden membership.

“For years BAC has focused mainly on families and this makes up a large part of our membership base,” he said. “Over the past year we have made things a little more affordable and it has attracted a much more diverse clientele.”

One successful program BAC offers serves the female segment of the market. In addition to offering traditional gyms, outdoor swimming pools, and several children’s program at its two facilities in Turlock and Modesto, BAC also considers its facilities as high end racquet clubs. Among the most popular of BAC’s programs are the women’s tennis leagues.

As of 2005, women comprised 57% of fitness club membership, according to the IHRSA. In addition, an increase in female sports participation, such as tennis and running, seems to positively impact fitness centers.

Erin Sweeney, a Modesto resident preparing for her first marathon with the Leukemia and Lymphoma Society’s Team-in-Training, is an example of this trend. According to the National Sporting Goods Association, the number of female runners grew 13.6% from 1999 to 2004. And as Sweeney indicates, part of her training as a runner comes from fitness center membership.

“Right now I’m taking Yoga at BAC for stretching,” said Sweeney. “My intention is to continue yoga but also add cross-training and strength training after the race.”

Fitness centers have found success even in down economies by taking advantage of such changes in market demographics and also by positioning their services as essential to good health.

“Being healthy isn’t optional. The benefits I have derived from ongoing participation in fitness classes far outweigh the nominal cost of fitness membership,” said Eileen Anderson of Modesto. “It is also a great way to stay connected with my kids.”