Sunday, January 02, 2022
Corona rules put you off
Fitness studios fear new customer business
The start of the year is the most important time for the fitness industry to generate sales. But many studios fear a good start this January. The current Corona measures in the facilities deter potential members, it is said.
In the second Corona winter, many fitness studios in Germany fear again for their business. Although there is no longer a hard lockdown, due to strict regulations, the industry fears the growth of new members at the groundbreaking beginning of the year. “2G-plus regulations have a significant impact on new registrations,” says Ralph Scholz, Chairman of the German Industry Association for Fitness and Health (DIFG). For many people it is too time-consuming to submit a current test (“2G plus”) in addition to proof of vaccination or recovery.
“Where the rule was introduced, new business has almost completely collapsed.” The start of the year is the most important time for fitness studios – this is when many people have good resolutions after the gluttony at Christmas. According to the Employers’ Association of German Fitness and Health Systems (DSSV), fitness studios usually achieve a third of the new registrations in a year in the first quarter. “With the Omikron variant, the first quarter should be at least as bad as last year,” fears Scholz.
At that time the fitness studios were closed in lockdown, now the costs continue to run in full. “Operators have livelihood problems again.” In view of layoffs, the industry needs 15 to 20 percent new registrations in order to maintain the level of members, says Scholz. Although business got off to a surprisingly good start in the summer after a long lockdown, the crisis left its mark.
“Politics lacks a long-term strategy”
The DIGF expects 9.5 million members at the turn of the year, a good two million fewer than in the pre-crisis year 2019 (11.6 million). Around 190,000 people are still employed in fitness studios, 40,000 fewer than a year ago. After all, despite the bitter sales losses in the crisis year 2020, there was no bankruptcy wave, as the politicians granted high financial aid.
A patchwork of rules currently applies to fitness studios – in some federal states only the 2G rule applies (only for vaccinated and convalescent people), in others a quick test is also required, in some this is not applicable for people with a booster vaccination. “Politicians lack a long-term strategy,” complains Scholz. For fitness studios, he sees less the trend towards home sports as a danger, but rather the “weaning from physical activity itself”.
When the 2G-plus rules were introduced in some federal states, the employers’ association DSSV warned of a loss of 1.3 billion euros in sales in the industry. The regulation means falling demand and a lack of new registrations, warned President Birgit Schwarze. The result is 50 percent more terminations than usual. “For many members, the additional financial and time burden is a reason not to go to the gym,” said Schwarze.