New player in SA health and fitness industry

Cape Town - Hot on the heels of SA-listed Brait conditionally agreeing to acquire about an 80% interest in the international health club operator Active Topco (Virgin Active) for about £682m (R12.17bn), a new player has entered South Africa’s health and fitness industry.

READ: Brait to buy 80% of Virgin Active for R12bn

This month Go Health opened its first health club in the Northview Shopping Centre, Northwold -  the first of 40 clubs to be opened in major metropolitan areas nationwide by 2019.

The group’s initial plan is to gain 20% of existing market share.

“In line with our vision, Go Health has a fresh, clean and modern look and will embrace technology, recognising the needs of today’s consumer," said Justin Williamson, chair of Go Health.

“Health clubs have become extremely expensive for most South Africans due to limited choices. Go Health has partnered with leading global brands in pursuit of a world-class health club experience for its members."

According to Williamson, the group is aiming to assist in re-pricing the local health club market by providing not only a great health club environment, but also a sound business proposition.

“Most competitor health clubs have swimming pools, which are very expensive to install, maintain and keep heated and use significant electricity,” explains Williamson, by way of example.

“While on average only 5% of health club members use the pool, the other 95% of health club members help pay for it."

Grindrod Bank owns 49% of Go Health, while the remaining shareholding is made up of prominent local and international investors, as well as management and staff sharing in 15% of the value of the company.

Williamson said the ability to get suitable new sites with long-term leases will be among the group’s challenges.