Planet Fitness will open 225 new gyms this year

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Planet Fitness said this week that it would open 225 gyms this year. Some of them will be located in sites previously occupied by Toys "R" Us or Sears, although the company has refused to give a specific number.

The sports hall chain has experienced a period of growth in recent years. It has more than 1,800 gyms in the United States, up about 60% from three years ago. Planet Fitness claims to potentially reach 4,000 people in the country in the long run.

Investors are convinced that Planet Fitness has a great chance to grow by pursuing the 80% of Americans not belonging to a gym.

Wall Street also seems to believe that Planet Fitness is on Amazon's test. Sears and Toys "R" Us have failed to protect their businesses from Amazon's pressures. But Amazon does not compete directly with gyms, so it's not such a big threat, said Cowen analyst Oliver Chen.

"You can not generate a six pack on your couch," he added.

Leaders and analysts at Planet Fitness say two key trends have boosted the gym. First, more Americans want to get in shape. In the US, gym membership has grown 37% since 2008, according to the International Health, Racquet & Sportsclub Association, a professional group of the sector.

The second reason: retail stores continue to disappear, opening up new real estate for growing companies like Planet Fitness.

"We have clearly benefited from what is happening in the brick and mortar," said Planet Fitness' CFO Dorvin Lively, at a conference of analysts in March.

US retailers have already announced the closure of 6,000 stores this year. It's more than all last year
US retailers have already announced the closure of 6,000 stores this year. Payless, Gymboree, Charlotte Russe and Shopko have all filed for bankruptcy, while other retailers, such as Family Dollar, Victoria's Secret and JCPenney, are reducing their footprint.

At the closing of these stores, homeowners are trying to turn to healthier businesses to replace them.

Sports halls and grocery stores have become attractive options for homeowners because Americans visit them frequently, including during the week, when it is often difficult to attract physical traffic. The number of mall tenants in shopping centers has more than doubled over the past decade to reach more than 14,000 last year, according to the CoStar Group Real Estate Company.

Planet Fitness is "one of the preferred partners" of the owners, said Chen.

When Planet Fitness members go to the gym, they often go to the stores before or after training. The company's research shows that 76% of Planet Fitness members combine their gym visits with other stores. This profile makes it attractive to a range of partners, including retailers such as Kohl (KSS) and Burlington (BURL).

"While traditional retailers continue to close stores, owners are turning to Planet Fitness as a key tenant to drive traffic to their centers," said Chris Rondeau, General Manager of Planet Fitness, CNN Business. "We are evaluating all the opportunities created by fleet reductions at retailers like Sears, Toys" R "Us [and] Sports Authority. "

Hundreds of old Sears stores are empty. Amazon and Whole Foods could set up

Rondeau said Planet Fitness sees opportunities to move into closed shopping centers. But the majority of its openings will be in traditional outdoor malls. Planet Fitness plans to move to sites with powerful roommates, such as grocery stores, he said.

Real estate companies are not the only ones to have used Planet Fitness gyms.

Kohl & # 39; s Burlington and reduce their stores and associate with Planet Fitness to settle in this extra space because they hope the gym will attract customers.

In March, Kohl's announced that she would rent a space for Planet Fitness gyms adjacent to 10 stores. "We see the Planet Fitness partnership as a real win-win," said Kohl's executive director, Michelle Gass, to analysts at the time.

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