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Virgin Active's R1.2bn expansion plans

Virgin Active yesterday, Sunday 15 July 2007, announced plans to invest 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 seek to entrench itself 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 aims to increase the membership base by 50% in the forthcoming three years.

MD 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.”

Already evidenced in new clubs such as Gateway in Durban and the upcoming re-launch of Centurion, 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 junior care resource.

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