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Virgin Active opens 100th club
Virgin Active has opened its 100th club at Balfour Park, Johannesburg, late last week, justifying the call made by Nelson Mandela in 2001 to Richard Branson, asking him to save thousands of jobs by taking over the liquidated Health and Racquet Club.
Virgin Active Ambassador and Olympic Gold Medallist – Chad le Clos, with MD of Virgin Active South Africa, Ross Faragher-Thomas – taken at the opening of the 100th club in Balfour Park.
The capital investment by Virgin Active SA in the establishment of new clubs, refurbishing and rebranding of existing ones has been close to R2.9bn and the brand has become a success story, with around 130 000 plus people of diverse backgrounds, who access health clubs across the country each day.
Initially the task of repositioning the brand and bedding down the business took five years at which point the expansion began in earnest. "Reaching the 100 club mark is a fantastic milestone but that doesn't mean we can relax. We are always looking for new club opportunities and, more importantly, regularly refurbishing existing clubs," says MD, Ross Faragher-Thomas.
Depending on location, the building, architecture, infrastructure, facilities and the club category, it costs between R40 and R120m to open each of the six to 10 clubs every year. In addition, the company also sets aside at least 10% of its turnover for refurbishment.
"We see the diverse markets in South Africa as an opportunity, not a challenge. We understand that South Africa is unique and have made it our business to understand our members and what works for them and cater to them," he adds.
The plan is to open six to ten clubs annually and the company is well into the development of the entry level clubs - a new and exciting market for Virgin and an opportunity for all South Africans. "We believe in the future of the company and while there is still a strong demand, we will supply as best as possible what the consumer wants and needs," concludes Faragher-Thomas.