Becoming fit is a challenge for many. This isn’t merely because it’s physically demanding. It can be difficult for some to get in shape simply because there are so many recommended fitness plans from which to choose.
This is why many benefit from working with personal trainers and taking classes at local gyms. However, due to the Covid-19 pandemic, going to the gym hasn’t been an option for most people for several months now.
The increased availability of several Covid-19 vaccines may change that. That’s what Planet Fitness CEO Chris Rondeau believes. According to Rondeau, in the next three quarters of 2021, “we could see more momentum than we used to see and see a stronger second half than we’ve ever seen, as people get out there and get back to the real world again.”
This may not be mere wishful thinking on Rondeau’s part. Although it’s common for the rate of fitness club new memberships to increase in January, this year, the rate was much higher than usual, and many of Planet Fitness’ “new” members were actually old members who were signing up again after canceling their memberships during the pandemic.
This development has come as a pleasant surprise for Rondeau and others in the fitness industry. Some feared that the Covid-19 pandemic would result in potential customers deciding they could get in shape by working out at home instead of paying for a gym membership even after being vaccinated. The increase in gym membership sign-ups indicates many realize that achieving their fitness goals is still much easier if they have access to a gym and personal training services.
These developments may also be of interest to investors. Many have been reluctant to invest in certain fitness companies in recent months, believing the pandemic’s negative impacts on this sector would be permanent. Trends show this likely isn’t the case. Thus, some investors may seize this opportunity, investing in fitness companies now when prices are low.
It appears they may have good reason to suspect stock prices in such companies are poised to rise substantially in the coming months. That said, this is not meant to encourage or discourage anyone considering investing in Planet Fitness or similar companies. It’s always crucial to research potential investments and coordinate with experts when deciding where to invest one’s money.
It’s also worth noting that the rate of member cancellations Planet Fitness saw in 2020 was actually close to the rate of Planet Fitness membership cancellations in 2019. Contrary to what many have assumed, the fitness club industry didn’t take a major hit from the pandemic in the first place. It appears the availability of vaccines has simply encouraged many members who did cancel their plans to sign up again, while also attracting some new customers.
It remains to be seen if this trend will continue. As of now, there’s little reason to believe it won’t. Fitness enthusiasts, investors, and those who work in this sector should pay attention accordingly.