How the rise of weight-loss punches has boosted gym revenue in Britain


The chief executive of a national gym chain has revealed that the rise of weight-loss drugs is driving greater demand at its fitness centres.

Will Orr, who runs low-cost gym chain The Gym Group, said the company was “absolutely” looking at the impact of LPG-1 as a “tailwind and contributing factor” to its business.

He sees the trend as an opportunity “to help people maintain the results that could be obtained with GLP-1.”

This comes as recent academic studies highlight the need for exercise and dietary support for people using these medications.

Research from the University of Oxford last week indicated that those receiving fat loss injections require ongoing assistance to prevent weight regain.

Furthermore, findings from University College London (UCL) and the University of Cambridge suggested that users of these drugs could be susceptible to muscle loss, further underlining the need for fitness regimes.

Orr said building strength in the gym was important for people taking these hits, as “GLP-1s can reduce muscle density.”

Analysts at Peel Hunt cited GLP-1 drugs, along with the fact that Gen Z considers fitness a “must”, as key contributors to continued demand for the group's gyms, as they said the company “should be a core leisure holding company with plenty of growth to look forward to”.

But Orr said he thought there was a broader health trend that existed before GLP-1, calling health, fitness and wellness “giant trends that aren't going anywhere.”

Analysts at Peel Hunt cited GLP-1 drugs, along with the fact that Generation Z views physical exercise as a “mandatory”, as key factors for continued demand for the group's gyms. (PA file)

The comment came as The Gym Group announced plans to open 75 new sites over the next three years, 25 more than previously stated, after reporting strong revenue growth and an increase in membership numbers.

The company reported strong revenue growth in a pre-lockdown trading update on Tuesday, with like-for-like revenue up 3 per cent year-on-year, while total revenue rose 8 per cent to £244.9 million for the year ended December 31.

Due to its strong business performance, the company now says it expects to open 75 new sites in the next three years, up from 50, with 20 new sites opening in 2026.

Orr said the company sees “significant opportunities in a market with structural growth tailwinds” and will therefore accelerate its “organically funded rollout to around 75 new sites over the next three years.”

Gym membership also grew 4 percent during the year, rising from 891,000 to 923,000.

The company has previously noted that strong demand from health-conscious Generation Z is helping to boost membership numbers, with around 40 percent of members now coming from the younger generation, highlighting interest in the group's value-focused offering.

The Gym Group currently operates 260 sites across the UK, with around 70 million visits a year.

“We entered the key New Year member recruitment period well prepared, and our high-value, low-cost offering, enabled by an advantaged business model, continues to resonate strongly with consumers,” Mr Orr said.

Jefferies analysts said the group's trading update demonstrates a “positive performance across the board”, citing “positive openings, performance progress and membership growth”, and said they expect the momentum to continue into 2026.

The group also said it met its goal of opening between 14 and 16 sites in 2025, completing 16 openings during the year.

It also announced plans to start a £10m share buyback programme, funded by surplus cash, which is expected to complete by the end of 2026.

The Gym Group will publish its annual results on March 11.

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