The Gym of the Future: Has the pandemic changed fitness forever?

As with many other industries relying on enclosed, shared spaces, the fitness industry was one of the most hardest hit by the Pandemic. Large chains like like 24 Hour Fitness, Gold’s Gym, and New York Sports Clubs filed for bankruptcy and laid off hundreds of employees. But the most hardest hit were the small, boutique gyms- 80% of the more than 40,000 gyms in the U.S. are small businesses; many have already closed their operations or are on the verge of doing so. Even the big, fitness boutique players like Barry’s Bootcamp or SoulCycle were struggling. In NYC, over a year after everything shut down, Barry’s Bootcamp is just starting to offer regular in-studio classes again, with masks + capacity restrictions. And that’s only a few select locations and of course nowhere near the usual traffic and revenue they would experience pre-Pandemic.

So who were the winners? Well, it’s pretty clear Peloton has had a fantastic year: its business doubled in 2020 and they generated over $1.8 billion in revenue. Others were quick to follow suit with SoulCycle releasing their at-home bike right as the pandemic hit in an effort to compete directly with Peloton. Similarly, Mirror, Tonal, Tempo and the likes are other popular at home “smart” fitness equipment- but they all come at a price of at least $2,500 — a price not everyone might be willing to pay. That’s where purely online players come into play- from Nike to Apple to Alo Yoga- all came out with new, on demand workout subscriptions. The monthly subscription costs are usually cheaper than the traditional gym membership and of course allow users to work out from anywhere at anytime. In addition to that, data also comes into play. The more classes you take, the more data is being collected on your preferences and the different apps are soon able to recommend a personally, tailored workout plan.

So is this the end for traditional in-person gyms? Some, like Brad Olson, Peloton’s chief membership officer, would say so: “We once played video games in malls, but then people discovered they could play at home and experience the same connection. Now everyone is asking for an Xbox or PS5 for Christmas,” he says. “The same is happening for fitness.” But I am a little more skeptical. While the pandemic certainly has created some innovative ways to re-create the community aspect of fitness in a virtual setting, I personally still find it harder to stay motivated when I’m just working out at home. I think this aspect is a little bit harder in a virtual setting for a couple of reasons: there is no penalty for not showing up to at 8am Peloton class, it’s easier to take a break when no one else is watching on a pre-recorded class and at the push of a button you can turn of your device if you just don’t feel like working out anymore. Add to that the fact that most people will not want, nor be able to spend $1,000s on gym equipment (weights, treadmills, bikes, etc.), much less have space for an at home gym and I think we will see in-person fitness is here to stay. I do agree that it will be different, a sort of hybrid between virtual, tech-enabled workouts and traditional in-person sessions.

“The future is a blend of digital and physical. Despite the fact that some of the storefronts are shrinking, consumer demand is booming as people aim for a balance between mental and physical health,” says Jason LaRose, CEO of Equinox Media. What that blend will look like exactly might be too soon to tell, but I for one am definitely excited to be able to sign up for more in-person classes as boutique fitness is starting to come back to NYC. While I have my SoulCycle bike at home, I don’t think this will stop me from going and taking a class in person with my friends either. The benefit of this hybrid model is that there is more flexibility as well as more access to a variety of classes. The other benefit is that with increased competition on the tech-enabled fitness market, there will also come increased innovation. I for one, am excited to see what the next, new fit-tech product will look like and how gyms will evolve over time. I think if anything the pandemic has turbocharged change in an industry that was long overdue for a makeover and has motivated a whole new group of reluctant gym-goers to try out new ways of exercising- a movement upon which smart fit-tech startups can continue to grow.