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chief executive of a country Gym The rise of chain stores shows weight loss pills is driving increased demand for its fitness centres.
Will Orr, head of low-cost fitness chain The Gym Group, said the company was “absolutely” watching the impact of the pandemic. GLP-1s as a “tailwind and contributing factor” to its business.
He sees this trend as an opportunity to “help people maintain the outcomes that GLP-1 might bring.”
Recent academic research highlights the need for individual exercise and dietary support with these medications.
Research from the University of Oxford last week showed that those who receive fat-reducing injections need ongoing help to prevent weight regain.
Additionally, findings from University College London (UCL) and the University of Cambridge suggest that users of these drugs may be susceptible to muscle loss, further underlining the need for a fitness regime.
Mr Orr said building strength in the gym was important for people receiving the injection because “GLP-1 can reduce muscle density”.
Analysts at Peel Hunt pointed to GLP-1 drugs and Gen Z’s perception of fitness as “compulsory” as key factors in continued demand for the group’s gyms, as the company “should emerge as a core leisure holding with strong growth prospects”.
But Mr Orr said he believed there were broader health trends that preceded GLP-1, calling health, fitness and wellness a “huge trend that’s not going away”.
The comments came as The Gym Group announced plans to open 75 new venues over the next three years, 25 more than previously announced, after reporting strong revenue growth and rising membership numbers.
The company reported strong revenue growth in a trading update before the close on Tuesday, with year-on-year revenue up 3%, while total revenue for the year to December 31 rose 8% to £244.9m.
As a result of its strong trading performance, the company now says it expects to open 75 new sites over the next three years, up from 50, with 20 new sites due to open in 2026.
Mr Orr said the company saw “significant opportunities in a market with structural growth tailwinds” and would therefore accelerate the launch of “approximately 75 new sites on an organically funded basis over the next three years”.
Gym memberships also increased 4% for the year, from 891,000 to 923,000.
The company has previously noted that strong demand from health-conscious Gen Z is helping to increase membership numbers, with around 40% of members now coming from the younger generation, underscoring interest in the group’s value-focused services.
Gym Group currently operates 260 venues across the UK, visited by approximately 70 million people each year.
“We are well-positioned to enter the critical New Year membership recruitment period, and our high-value, low-cost products, supported by a superior business model, continue to resonate strongly with consumers,” Mr Orr said.
Analysts at Jefferies said the group’s trading update showed “a positive performance across the board”, citing “positive vacancies, yield progress and membership growth”, adding they expected the momentum to continue into 2026.
The group also said it had achieved its target of opening 14 to 16 locations in 2025, with 16 openings completed during the year.
It also announced plans to launch a £10m share buyback program, funded by remaining cash, which is expected to be completed by the end of 2026.
Gym Group will release full-year results on March 11.
