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Weight-Loss Drugs Fuel Gym Boom: The Gym Group Sees Surge
13 Jan
Summary
- Weight-loss medications are driving increased demand at The Gym Group.
- Studies show exercise is vital to prevent weight regain from these drugs.
- The Gym Group plans to open 75 new sites over the next three years.
The chief executive of The Gym Group has revealed that the increasing popularity of weight-loss medications is a significant factor driving demand for their fitness facilities. He views this trend as an opportunity to assist individuals in maintaining the results achieved through GLP-1 drugs, noting that academic studies increasingly emphasize the role of exercise in preventing weight regain.
Research from Oxford and UCL/Cambridge highlights that users of these medications require ongoing support to avoid muscle loss and rebound weight. Mr. Orr stated that strength training is crucial, as GLP-1s can reduce muscle density. Analysts also cite GLP-1s and Gen Z's focus on fitness as key drivers for the company's continued growth.
This surge in demand coincides with The Gym Group's announcement of accelerated expansion plans, aiming to open 75 new sites over the next three years, an increase from their previous target. The company reported strong revenue growth of 8% to £244.9 million for the year ended December 31, and gym membership increased by 4% to 923,000. The firm also plans a £10 million share buyback program.
