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Residents of Middleton, N.Y., might be losing a Sears Holding Corp. location, but they’re gaining a Gold’s Gym.
This January, Gold’s Gym, the 54-year-old health club company, will be opening a new location in what was once a Sears, the company told MarketWatch.
Sears has closed hundreds of stores in recent years as its sales have collapsed, announcing 80 additional closures of both the Sears and Kmart banners just recently.
Much of retail continues its efforts to bounce back from sector-wide declines and Sears isn’t the only retailer to announce that it’s shuttering locations in past months. Gap Inc. whose stores include the namesake Gap chain, J.C. Penney Co Inc. and Lowe’s Cos. are among the names that have also announced closures.
And companies like Bon-Ton Stores Inc. and Toys ‘R’ Us are among those that have liquidated.
High schools, doctor’s offices, and health clubs have been among the industries to fill space vacated space by over-stored retailers that are reevaluating, and shrinking, their fleet of locations.
Gold’s Gym, a full-amenity fitness club that can offer perks like group fitness classes, smoothie bars and saunas, is particularly interested because of the vast amounts of space they can occupy.
Large department stores span tens of thousands of square feet and, in malls, are traffic drivers to surrounding businesses. A vacant department store that serves as an anchor for a mall, can leave more than 50,000 square feet of space empty. Gold’s Middleton location will occupy 53,000 square feet, though the company said its “sweet spot” is 35,000-to-40,000 square feet.
“If the mall is dying, the landlord isn’t keeping it up or attracting tenants, we’re not the savior,” said Ken Phipps, director of global franchise development, Gold’s Gym. “But if the landlord has put money into the mall, attracting tenants of brand value to customers, we can enhance the overall project by coming into that big box space.”
According to Phipps, Gold’s attracts a mid-to-upper income client, and plenty of them. A location in Newburgh, NY has 11,000 members. Another in Glendale, Calif. has more than 10,000.
“The gym makes it a destination,” Phipps said.
Brookfield Properties Retail has gyms and fitness studios of all kinds, from Planet Fitness Inc. to Equinox and SoulCycle, among its portfolio, said Chris Pine, senior vice president of big box leasing at Brookfield, which is formerly GGP Inc.
“Historically, the mall is placed in the center of the market with great means of entrance and egress,” he said. “Infrastructure around the mall allows for easy traffic flow.”
Grocery stores and gyms drive daily traffic, as opposed to other retailers or entertainment like movie theaters. Taken together, Pine said Brookfield is “responding to what people want,” which “adds into a comprehensive mix” that appeals to the surrounding community.
Gym, health and fitness clubs generated $33.4 billion in revenue in 2018, according to IbisWorld data, and $3.8 billion in profit. Health club memberships grew at an annualized rate of 2.9% between 2013 and 2017, a total of 60.9 million members.
“Over the five years to 2023, many baby boomers are expected to sign up for health club memberships as they grow more health conscious due to their age,” the IbisWorld report says. “Furthermore, employers may increasingly subsidize gym memberships for their employees, while parents will continue to seek out fitness programs for their children as concerns regarding childhood obesity grow.”
Another Gold’s location in York, Pa., that opened in October 2017 as well as two gyms coming to Northridge and Carson, Calif., in December 2019 are also former Sears stores. But the company isn’t just seeking out those locations.
A Glendale, Calif., location that opened in April 2018 was previously a Nordstrom Inc. JWN, -1.83% , Gold’s told MarketWatch. And the company has opened health clubs in an old Circuit City (Arcadia, Calif., launched in March 2013), an old Linens N Things (Fullerton, Calif., opened in January 2011), and what was once a Barnes & Noble Inc. BKS, +1.21% (Valencia, Calif., opened in August 2012).
Phipps says he can remember a time when landlords didn’t want gyms in their malls. Now, things have changed.
“More and more people are getting into fitness every year besides New Year’s resolutions,” he said. “We’re not even in every state right now, so our expansion can be as great as those we can attract who want to diversify their portfolios into something lucrative.”
https://www.marketwatch.com/story/go...ons-2019-01-23
This January, Gold’s Gym, the 54-year-old health club company, will be opening a new location in what was once a Sears, the company told MarketWatch.
Sears has closed hundreds of stores in recent years as its sales have collapsed, announcing 80 additional closures of both the Sears and Kmart banners just recently.
Much of retail continues its efforts to bounce back from sector-wide declines and Sears isn’t the only retailer to announce that it’s shuttering locations in past months. Gap Inc. whose stores include the namesake Gap chain, J.C. Penney Co Inc. and Lowe’s Cos. are among the names that have also announced closures.
And companies like Bon-Ton Stores Inc. and Toys ‘R’ Us are among those that have liquidated.
High schools, doctor’s offices, and health clubs have been among the industries to fill space vacated space by over-stored retailers that are reevaluating, and shrinking, their fleet of locations.
Gold’s Gym, a full-amenity fitness club that can offer perks like group fitness classes, smoothie bars and saunas, is particularly interested because of the vast amounts of space they can occupy.
Large department stores span tens of thousands of square feet and, in malls, are traffic drivers to surrounding businesses. A vacant department store that serves as an anchor for a mall, can leave more than 50,000 square feet of space empty. Gold’s Middleton location will occupy 53,000 square feet, though the company said its “sweet spot” is 35,000-to-40,000 square feet.
“If the mall is dying, the landlord isn’t keeping it up or attracting tenants, we’re not the savior,” said Ken Phipps, director of global franchise development, Gold’s Gym. “But if the landlord has put money into the mall, attracting tenants of brand value to customers, we can enhance the overall project by coming into that big box space.”
According to Phipps, Gold’s attracts a mid-to-upper income client, and plenty of them. A location in Newburgh, NY has 11,000 members. Another in Glendale, Calif. has more than 10,000.
“The gym makes it a destination,” Phipps said.
Brookfield Properties Retail has gyms and fitness studios of all kinds, from Planet Fitness Inc. to Equinox and SoulCycle, among its portfolio, said Chris Pine, senior vice president of big box leasing at Brookfield, which is formerly GGP Inc.
“Historically, the mall is placed in the center of the market with great means of entrance and egress,” he said. “Infrastructure around the mall allows for easy traffic flow.”
Grocery stores and gyms drive daily traffic, as opposed to other retailers or entertainment like movie theaters. Taken together, Pine said Brookfield is “responding to what people want,” which “adds into a comprehensive mix” that appeals to the surrounding community.
Gym, health and fitness clubs generated $33.4 billion in revenue in 2018, according to IbisWorld data, and $3.8 billion in profit. Health club memberships grew at an annualized rate of 2.9% between 2013 and 2017, a total of 60.9 million members.
“Over the five years to 2023, many baby boomers are expected to sign up for health club memberships as they grow more health conscious due to their age,” the IbisWorld report says. “Furthermore, employers may increasingly subsidize gym memberships for their employees, while parents will continue to seek out fitness programs for their children as concerns regarding childhood obesity grow.”
Another Gold’s location in York, Pa., that opened in October 2017 as well as two gyms coming to Northridge and Carson, Calif., in December 2019 are also former Sears stores. But the company isn’t just seeking out those locations.
A Glendale, Calif., location that opened in April 2018 was previously a Nordstrom Inc. JWN, -1.83% , Gold’s told MarketWatch. And the company has opened health clubs in an old Circuit City (Arcadia, Calif., launched in March 2013), an old Linens N Things (Fullerton, Calif., opened in January 2011), and what was once a Barnes & Noble Inc. BKS, +1.21% (Valencia, Calif., opened in August 2012).
Phipps says he can remember a time when landlords didn’t want gyms in their malls. Now, things have changed.
“More and more people are getting into fitness every year besides New Year’s resolutions,” he said. “We’re not even in every state right now, so our expansion can be as great as those we can attract who want to diversify their portfolios into something lucrative.”
https://www.marketwatch.com/story/go...ons-2019-01-23
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