2023-12-23
Fitness Equipment Industry Weekly Blog – W52
1. Decathlon stops operation in Russia
According to Decathlon, Since October 2023, Decathlon no longer operates any stores, employs any staff, nor holds any stake in businesses in the Russian Federation.
As part of its disengagement from the Russian Federation, Decathlon prioritized ensuring that the employment of teammates was maintained with the new owner, for those who wished.
This is why Decathlon chose to transfer all of its operations and assets to the company ‘ARM’, which owns the Desport brand. To finalize the transaction, it was agreed, in accordance with current local and international regulations, to supply a limited quantity of products for a limited period of time, to support the buyer in the launch of its new operations, thereby preserving the jobs of former teammates.
Decathlon reaffirms its commitment to complying with all applicable local and international regulations.
2． Basic-Fit Acquires 42 gyms from Mcfit and 5 from Holmes Place in Spain
In a strategic move to solidify its presence in the Spanish fitness landscape, Basic-Fit (Euronext: BFIT) has successfully negotiated the acquisition of RSG Spain, a deal encompassing 42 McFIT clubs and 5 Holmes Place clubs. The agreement with the RSG Group is pending approval from the Spanish competition authority, with the completion expected in the first quarter of 2024.
Upon finalization, Basic-Fit plans to rebrand and seamlessly integrate the acquired clubs, a process anticipated to be completed by 2024. René Moos, CEO of Basic-Fit, expressed confidence in the acquisition, projecting a Return on Invested Capital (ROIC) of at least 30% by 2026. The move comes as part of Basic-Fit's strategic vision to expand its footprint and enhance its leadership position in Spain.
To finance the acquisition, Basic-Fit secured a commitment of €110 million from its syndicated banks, drawing from a €150 million revolving mechanism agreement. This additional liquidity will not only cover the acquisition costs but also facilitate remodeling and restructuring of the clubs, contributing to increased financial margins.
Members of the newly acquired clubs will gain access to Basic-Fit's global services, including the Basic-Fit app and virtual group classes, offered across the existing 140 clubs in Spain.
3．REP Fitness Strengthens Global Reach through Strategic Partnership with TheRack in the Philippines
In a move to expand its international footprint, REP Fitness, a provider of top-tier fitness equipment, announces a strategic collaboration with TheRack.co in the Philippines—a renowned distributor for gym equipment, lifting gear, and high-quality apparel.
The newly forged alliance with TheRack.co, marks a pivotal commitment by REP Fitness to deliver excellence in fitness products to strength enthusiasts in the region. This strategic partnership is geared towards meeting the escalating demand for top-tier fitness gear in the dynamic fitness landscape of the Philippines.
Ryan McGrotty, Co-founder and CEO at REP Fitness, expressed enthusiasm about the collaboration, stating, "We are thrilled to announce our partnership with our new distributor in the Philippines. This collaboration aligns seamlessly with our vision of empowering individuals to achieve their fitness goals by offering them access to the best equipment available. The Philippines has a vibrant fitness community, and we are excited to be a part of it."
This strategic partnership opens up avenues for commercial gyms, home gyms, studios, and more in the Philippines to access REP Fitness' renowned product line. Known for its innovation, performance, and durability, REP Fitness offers a comprehensive range that includes power racks, benches, barbells, and weight plates, catering to the diverse needs of fitness enthusiasts at all levels. As REP Fitness strengthens its presence in the Philippines through TheRack.Co, it reinforces its commitment to providing top-notch fitness solutions to a global audience.
4. SKLZ Unleashes Innovation with Speed Gates: Revolutionizing Speed Measurement in Sports Training
In a groundbreaking move, SKLZ, the foremost authority in sports training products, has recently introduced a game-changing addition to its lineup – the Speed Gates. This cutting-edge product represents SKLZ's latest foray into speed measurement technology, designed to monitor and log speeds across distances of up to 50 yards. The Speed Gates stand poised to become an essential tool for athletes at every skill level, aiming to enhance their speed and agility performance.
The comprehensive Speed Gates set comprises four cones, four sensors, a timer, and a convenient carry bag, ensuring effortless portability and storage. Users can easily establish a start gate and a finish gate using intuitive light indicators, running the designated distance between them. With the ability to record the most recent 50 times, the Speed Gates facilitate a seamless review of progress. Moreover, their versatility extends to both indoor and outdoor use, making them an invaluable asset for timing the 40-yard dash, refining speed from the batter's box to first base, outpacing opponents to the ball, or pursuing any other speed-related objectives.
Priced at $129.99, the Speed Gates are available for purchase on www.sklz.com, Amazon, and both online and in-store at Dick's Sporting Goods and Academy Sports + Outdoors locations.
About SKLZ
SKLZ stands at the forefront of performance training products and programs for athletes of all levels. Their innovative products are meticulously designed to synchronize the body with the brain, empowering athletes to become stronger, smarter, and faster. Boasting an extensive range of tools tailored to every sport and skill, including training nets, agility ladders, resistance bands, and more.
5．Tonal Capitalizes on Mirror's Setback, Offers Trade-In Program for Mirror Users
In the ever-evolving landscape of at-home fitness, Tonal is strategically seizing an opportunity arising from the setbacks of Mirror, a company that faced a decline after being acquired by Lululemon in 2020.
Lululemon's decision, announced in September, to discontinue the sale of Mirror connected fitness equipment in favor of a five-year partnership with Peloton left existing Mirror customers uncertain about the future of their devices. Although Lululemon pledged ongoing support for existing Mirror products, this move led to a notable erosion of customer trust, creating an opening for competitors to step in.
Tonal, often dubbed the "Peloton for strength training," has capitalized on this moment of opportunity by introducing a trade-in program for Mirror customers. Commencing on Monday and running until February 12, Mirror owners can exchange their equipment and receive a $250 discount on the purchase of a refurbished Tonal Trainer. Additionally, participants in this program will enjoy the first 12 months of their Tonal membership for free, and Tonal is offering a complimentary removal service for Mirror devices from customers' homes.
To be eligible for this program, customers must possess a Mirror device and an active or inactive Lululemon Studio All-Access Membership. Verification of eligibility requires the submission of a photo or purchase receipt.
Madelyn Sheldon, Tonal's Vice President of Marketing and PR, highlighted the significance of this opportunity, stating, "This is the perfect chance for fitness enthusiasts looking for a fresh start and an inspiring and intelligent fitness routine centered around our unrivaled coach-led classes."
Priced at $4,000, Tonal's device shares similarities with Mirror, offering customers the ability to stream workout content at home, guided by personal trainers. As the fitness industry continues to evolve, Tonal's strategic move provides a compelling option for those seeking a renewed and dynamic fitness experience.
6. Vitruvian Raises Another $15M for Ultra-Portable Home Gym
Vitruvian, the Australian home fitness startup that garnered accolades for its sleek AI strength trainer, recently raised an additional AU$21.8 million (equivalent to $14.7 million USD) in funding. This injection of capital is aimed at fortifying Vitruvian's hardware, software, and content offerings.
This latest funding round is an extension of the AU$21 million Series A secured by Vitruvian in the previous year, drawing continued support from existing investors. Notable contributors include Larsen Ventures and Steve Baxter of Australia's "Shark Tank." The funds from the 2022 round played a crucial role in expediting production and facilitating Vitruvian's expansion into the competitive U.S. market.
Founded in 2018 by Jon Gregory, CEO, Vitruvian has transformed strength training with its innovative AI-driven Trainer+. This slim-profile device, recognized as one of Time's Best Inventions of 2022, dynamically adjusts weight (up to 440 lbs) based on the user's fitness profile, promising optimal workouts in half the time of traditional routines. Users can also opt for non-adaptive training modes, maintaining a consistent weight. The Trainer+ experience is further enriched by a "quick connector system," allowing users to effortlessly swap handles, bars, straps, and accessories for varied and challenging workouts.
In a strategic move earlier this year, Vitruvian introduced a partner program catering to fitness clubs and hotels. This initiative enables guest-centric businesses to provide strength training classes featuring the Trainer+. Partnering hotels and fitness clubs can join an affiliate program, allowing them to offer Trainer+ machines to guests at discounted rates while earning a percentage of the sales.
Further showcasing its commitment to innovation, Vitruvian joined forces with Gymshark in October to showcase its digital resistance training at the Gymshark flagship store on Regent Street in London. As Vitruvian continues to redefine home fitness, this recent funding infusion positions the company for continued advancements in the ultra-portable fitness space.
We provide weekly fitness equipment industry news and updates.
Author: Roger Yao (cs07@fitqs.com)
The founder of FITQS/FQC
The columnist of magzine <China Fitness Equipment>
20 years in fitness/sporting equipment OEM/ODM technical, quality control and sourcing management.
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