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Actively expanding in SA
Virgin Active recently announced plans to invest an R1.2 billion in its South African operations over the next five years. R750 million of this sum will go into the total upgrade of all existing facilities over the next 36 months, including the supply of brand new state-of-the-art equipment, and the balance will be spent on an extensive new build programme that will see around forty new clubs developed over the next five years.
Coming off a solid five years in the South African market, Virgin Active will continue to entrench its position as the leader of holistic health and fitness facilities with the immediate roll out of this in-depth strategy. This will underpin Virgin Active's market segmentation approach which seeks to increase the membership base by 50% in the forthcoming three years.
Managing Director, Mark Field states: “Worldwide, the health club industry has seen strong growth as more and more people look for a solution to the negative health effects of modern lifestyles. South Africa has seen significant economic growth over the past few years and we are seeing increased demand for health clubs across a broader section of the population. This translates into a need for new health club facilities as well as a segmentation of our product in order to better serve the market.”
Field continues, “Virgin Active's business revolves around its members and our continuing to update our offering and providing our members with world class facilities and the latest fitness products is of paramount importance to the Group in growing health club membership in South Africa.”
Already strongly evidenced in new clubs such as Gateway in Durban and the upcoming re-launch of Centurion for example, the strategy allows for a new three tier offering to members and will provide an even greater variety of product and services. Classic clubs will form the top end of the estate with new life centres and fitness clubs making up the bulk. Capitalising on the worldwide movement for holistic wellness, life centres will encompass everything from mind and body studios to aqua lounges, fitness zones specifically focused at the female membership base and Club V–max, Virgin Active's unique junior care resource.
Virgin Active's internationally proven business model focuses on monthly debit orders (not upfront fees or long term contracts), affords the group the ability to now embark on this substantial roll out programme which will see a total of four new builds completed by 31 December 2007, as well as a number of existing clubs whose facilities and members are currently enjoying refurbishment.
