Aussie budget gym hits Kiwi shores

PHIL DOYLE

AUSSIES ARRIVE: Jetts Fitness general manager Claire Attard on site at Jetts' first New Zealand outlet, in Royal Oak, Auckland.

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New Zealand's fitness industry is set to bulk up with Australian budget gym franchise Jetts Fitness planning to open 25 stores around the country within the next two years.

Jetts opened its first site in Auckland last month and its fast-track expansion plans include opening a further nine gyms in the city and up to three sites in other parts of New Zealand within the year.

The privately owned brand is one of Australia's fastest-growing franchises and has exploded in size during its two years of operation, opening 40 gyms last year with a further 60 set to open across Australia this year.

Jetts New Zealand general manager Claire Attard said the A$40 million company was excited about its trans-Tasman manoeuvre. "There are a lot of similarities between the Australian and New Zealand markets. We've spent a lot of time developing our model so we're confident it will succeed here."

Ms Attard was personally investing rather than using company money in the first five New Zealand franchises, partnering with local investors. The New Zealand setup costs for a Jetts franchise of about $500,000, including fitness equipment, were forecast to be returned within the first 18 months of operation, she claimed.

Jetts offers a 24-hour gym, low staffing levels with one on-site manager, small sites in high-profile retail locations and capped memberships.

Jetts charges $23.94 a fortnight for one person in a "do-it-yourself service" compared with Les Mills' charges of between $18 to $41 a week, or $72 a month at the cheapest, for greater levels of service such as reception and physios.

"The location is very important, people want to come to a fitness centre near where they live. Our expansion is all about coming in with the right presence in the right location," Ms Attard said.

The company is looking at all the main centres for potential gyms, as well as some in provincial centres, but has not yet identified sites.

Statistics from industry body Fitness New Zealand valued the overall New Zealand industry at $250 million.

Fitness NZ chief executive Richard Beddie said this year's arrival of Jetts and US franchise chain Anytime Fitness was the first foray of the fitness franchise model here. Anytime Fitness, which has more than 1300 centres worldwide, had opened three sites including a Christchurch centre and had plans for a second Auckland gym to open soon.

The expansion of Anytime and Jetts was the corporatisation of fitness as a business, he said, whereas traditionally gyms have been owned and run by enthusiasts.

"What we have found is if you build it, they will come. The more facilities you have the more people they attract, so we expect the franchises will grow the market."

Jones Lang LaSalle research and consulting manager Chris Dibble rates the fitness industry "hot" on his retail barometer.

The franchises and specialist gyms would increase market share through diversification while mainstream players such as Les Mills would expand and attract members through ease of access and classes. "It will be a highly contested market-share battle over the next six to 12 months."

He expected "solid" marketing campaigns across the industry.

- © Fairfax NZ News