Covid-19 has thrown the gym industry into a tailspin, wreaking havoc on some of the biggest names in fitness including Gold’s Gym and 24 Hour Fitness, which both had to file for bankruptcy protection.
Planet Fitness also has had to shut its doors for months but unlike its rivals, the company is poised to sprint past the competition once the pandemic ends.
Gyms were forced to shut down in March 2020 to try to curb the spread of Covid-19, crippling the fitness industry, which is a $32 billion market in the U.S., with more than 41,000 gyms and 64 million members. In some states, gyms were among the last businesses allowed to reopen.
Before the coronavirus pandemic hit, Planet Fitness reported 53 consecutive quarters of positive same-store sales growth. But analysts say that without the rollout of a vaccine, it could be until the end of 2021 before the company reaches pre-pandemic levels of profitability. The company has not provided any guidance on its business for the rest of the year.
So despite the dire situation in the gym industry can Planet Fitness actually come out ahead? And what does social distancing mean for the future of working out?