Traditional gyms add membership options to compete with boutique fitness studios | MarketWatch

With competition coming from a few angles, traditional gyms are facing challenges that can only be overcome through a change in approach.

“Traditional gym operators are disadvantaged relative to some boutiques due to their high fixed investments in real estate and equipment,” Fitch Ratings analysts wrote in a Tuesday note. “Traditional facilities also face pressure from budget-oriented, lower-amenity gyms, which are gaining popularity and market share. To tackle this challenge, some traditional operators are transitioning to tiered membership-pricing strategies that limit access to certain amenities (pools, courts, etc.).”

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Traditional gyms add membership options to compete with boutique fitness studios – MarketWatch.