PRESENTING: An inside look at the winners and losers of the fitness industry as it faces upheaval
The COVID-19 pandemic shuttered gyms and boutique fitness studios across the country for nearly two months and left 500,000 people out of work. Meanwhile, quarantine has accelerated the at-home fitness trend, led by high-tech offerings from the likes of Peloton and Mirror.
During the 12 months preceding February 2020, consumers poured $2 billion into the home fitness market. Sensing a sea change, top brands shifted to digital offerings. Peloton led the way with an at-home exercise bike and virtual classes. The company reported a 66% increase in sales in the last quarter and subscribers of its app were up 64%.
Now, gyms and studios across the nation, already overwhelmed by a saturated market, are scrambling to keep customers loyal with virtual offerings and equipment rentals.
Business Insider spoke with dozens of investors, analysts, gym-goers, business owners, and fitness executives who all agreed that many Americans wouldn't make a swift return to the gym, thanks to at-home habits and fears of infection. Just over 35% of people surveyed said they have already canceled, or are considering canceling, their gym memberships and half said they wouldn't return upon reopening.
Devotees say 'gym is church' and that customers will come flocking back, but analysts aren't so sure.