Virgin Active states that South African clubs have shown significant momentum in the recovery of membership after the capacity restrictions were lifted in line with the February 2022 blockade regulations.
Since the relaxation of coronavirus restrictions and the removal of capacity restrictions in the first quarter of 2022, Virgin Active South Africa has recovered sales to levels similar to 2019 levels, with active members from 497,000 at the end of December 2021 to 5 He said it had increased to 557,000 a month.
Holding company Blait announced financial results for the fiscal year ended March 2022, saying that member engagement and utilization levels continued to improve, with termination levels significantly lower than 2019 levels. Stated.
Virgin, which accounts for 44% of Bright’s total assets, has raised R $ 1.8 billion in new capital within the Group long after completing its restructuring program and debt refinancing. He said significant amount of work has been done in the last 24 months to maintain liquidity, restructure the business, raise additional capital and provide a solid recovery and growth platform.
At the beginning of June, Virgin Active South Africa appointed Jessica Spira as the new Managing Director from October 1, 2022.
“Because Jessica is MD and a strong team, Virgin Active South Africa will be able to take advantage of the fast-growing health, wellness and fitness markets, making Virgin Active a new and innovative experience for South African consumers. Will be able to provide. ” Dean Kowarski, Group Chief Executive Officer, Virgin Active Global.
“There is a growing demand for community-based exercise and a departure from online fitness in the pandemic era. As the leadership of the gym industry has been dominated by men, Jessica’s appointment will bring a fresh perspective.”
Virgin Active also recently announced the acquisition of The Real Foods Group’s nutritional assets, including 204 stores on Kauai, for £ 28.6 million. The acquisition has been approved by the regulatory agency.
Looking to the future, the group said it would focus on spending to “revitalize real estate” and promote further member involvement in the coming years.
Based in the United Kingdom, Australia, Thailand and Italy, Virgin has seen a significant increase in membership across major regions since the beginning of the calendar year, rising from 754,000 active members at the end of December 2021 to 847,000. I showed that. The number of members will be greatly reduced when freezing.
The group said the business continues to be influenced by the tendency to work from home while all gyms are currently open.
According to Brait, the book value of Virgin Active’s investment on the reporting date was R8.28 billion (FY21: Ran 7.97 million), accounting for 44% of Brait’s total assets (FY21: 45%).
Virgin Active aims to significantly expand its footprint in cutting-edge clubs in Italy and Asia Pacific. In South Africa, the club has a strong position in the market, but says it needs to invest in facilities, products and digital.
Virgin said it will primarily expand its physical store offerings digitally and invest in membership experiences in specific regions, especially in South Africa.
Details have not yet been announced, but we will also implement a flexible pricing model. In a statement on Monday, Discovery Bank announced several new features being rolled out to its clients, including changes to Vitality Travel and a pay-as-you-go gym option with Virgin Active.
The group pointed out “a step-by-step and iterative implementation of a flexible membership model.”
To counter the tendency to work from home, Virgin said he would design an online service that complements the experience within the club and expands the level of reach and engagement. It pointed to a “hybrid business” model with a home workout that combines personalized group training sessions, health apps, delivery services, and virtual reality. All of these are digitally supported.
Read: Three major changes to Discovery Bank – including a pay-as-you-go gym
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