The Gym Group on track for up to 16 openings amid strong Gen Z demand

The Gym Group has said it is on track with plans to open up to 16 new gyms this year as bosses said trading is set be at the top end of industry targets.

Shares in the low-costs fitness firm moved firmly higher on Wednesday as a result, moving to their highest level since July.

Strong demand among health-conscious Gen Z customers have helped increase membership and revenues, the company said.

It reported that revenues grew by 8% to £121 million for the six months to June 30, compared with a year earlier.

Meanwhile, membership was up 5% at the end of the period compared with a year earlier, as it was also boosted by more regular trips to the gym by its customers.

Will Orr, chief executive of the firm, said around 40% of the group’s members are Gen Z, highlighting their interest in the group’s value focused offer.

“We are a broad church with 950,000 members, but many of those are Gen Z,” he said

“We have been focusing on being successful with a no frills proposition, being the Premier Inn of gyms, and I think that does resonate with the younger customers.”

The Gym Group has said it has benefited from strong trading at its new stores as it pushes forward with further site openings.

Bosses said it is on track with targets to open between 14 and 16 sites in 2025 and expects to accelerate this to around 20 next year.

The group has previously said it plans to open around 50 sites over the next three years.

Shares in the company were 9% higher at 148.9p.