Premium gyms struggle to stay afloat amid rising costs, competition
High rents and operational costs, along with fierce competition, have caused premium gymnasium chains in Ho Chi Minh CIty to scale back or shut down altogether.
Premium gyms are grappling with financial struggles as they confront rising costs, increased competition, and a shift in consumer preferences, leading to closures across HCMC. Citigym, a well-established chain, announced the closure of its Van Hanh Mall outlet, which is set to cease operations on October 1. The CEO attributes the closure to high operational costs and rental prices, which have put the chain under financial strain.
To offset the losses, Citigym has provided free upgrades and extended membership periods to affected customers. Other major players such as California Fitness & Yoga and Elite Fitness have also shut down several outlets recently, citing a decline in membership numbers and the need to reduce costs. These premium gyms invested heavily in facilities featuring high-end equipment, saunas, and sometimes even swimming pools, but the post-pandemic era has seen a dip in membership numbers.
Meanwhile, competition from more affordable gyms that have improved in quality and expanded rapidly has further exacerbated the situation. Some consumers now prefer exercising at home or in parks, citing the flexibility and lower costs. Despite these challenges, some premium gyms are exploring new avenues like offering beauty services or physical and rehabilitation therapy.
However, industry insiders suggest that the future may hold smaller, more manageable gyms for these chains.
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