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Jul 1

Fitness Centers Growing, But Facing Serious Competition

Planet Fitness in North Lakelandis part of a health club chain that charges as little as $10 per month. Even with membership growing again, some moderately priced chains face pressure from competitors' low costs.

LAKELAND | How healthy is the health club industry?

It maybe is a question worth asking in the wake of a recent announcement by Lifestyle Family Fitness that the fitness chain is throwing in the towel after 30 years in business. Lifestyle, which began in Lakeland, is selling its 32 remaining Florida locations to L.A. Fitness and is closing another site in Naples.

Despite Lifestyle's exit, health club consultants and local gym owners say customer demand has weathered the poor economy and remains strong. But some observers say the industry is suffering from intense price competition as gyms rush to add members and to expand.

In the case of St. Petersburg-based Lifestyle, "what happened to them is they tried to grow too quick," said Richard Quinn, a health club consultant based in Cape Coral.

"The business plan was out of hand for them. Everybody wants to grow fast but they forget where the industry started: with service," he said.

Lifestyle, founded in Lakeland in 1982, once had as many as 55 clubs and about 200,000 members in four states. The chain sold its locations in Ohio, Indiana and North Carolina in December and shuttered its North Lakeland gym about the same time.

"In the months that followed, we evaluated our option to remain an independent company or sell to a larger organization," said Lifestyle CEO Stuart Lasher in a memo to employees last month, announcing the sale to Irvine, Calif.-based L.A. Fitness.

Two Curves gym locations also closed in Lakeland last year.

Data from the International Health, Racquet and Sportsclub Association shows the U.S. health club industry is still seeing modest growth. Total revenue increased 5 percent to $21.4 billion last year, and club memberships inched up 2.4 percent to 51.4 million.

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Fitness Centers Growing, But Facing Serious Competition

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