The competition in the Sydney CBD gym market is fierce. According to a recent Deloitte report average increases in total revenue have slowed to approximately 4% p/a partly due to the economic slowdown and partly due to the entry of many new players into the market.
When looking at growth by type of facility the 24/7 and small fitness studio models are experiencing the highest rates at 11% and 12% respectively. It appears as though a shift from large gym facilities who can cater to all are being trumped by smaller facilities who can cater to a niche market - all at a more convenient location and at a smaller cost.
Perhaps the most important factor is convenience. Statistics show that the average person is reluctant to travel further than 8 minutes from their home of office to exercise. This has implications for the larger facility who rely on a wider ranging customer base to provide the volume necessary to cover overheads.
Whilst a creche is a godsend for parents with young children, a gym next door is the preferable option for this time conscious market.