During the pandemic, Studio B Fitness YEG in South Edmonton suffered financially. Co-owner Megan Clark remained optimistic when everything opened up again: new and old members would return, helping the business thrive.
Instead, the boutique gym at Whitemud Crossing faced another challenge: inflation.
“The cost of everything else, with gas and food, people just don’t have the money,” Clark said.
“Especially since the boutique gym is priced higher, with smaller classes, they just don’t have that income right now.”
Canada’s headline inflation rate has slowed to 6.9 percent from a high of 8.1 percent, but costs for things like food continue to accelerate.
At the same time, the Bank of Canada raised interest rates by 350 basis points in just seven months, one of its most drastic tightening campaigns in history, to try to force inflation back to its 2 percent target. .
‘Everyone is nervous’ as Canada grapples with heavy inflation, rising rates: experts
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Clark said they have started to see more customers return as pandemic restrictions have become a thing of the past, but business hasn’t taken off.
“I think one thing after another, especially with gas prices, if we’re not five or 10 minutes away, the cost of getting to and from your workout doesn’t make sense anymore.”
Clark also points out its costs just to keep the doors open. Utilities have increased, as has the expense of the software your business uses. They had to raise rates to help with overhead costs.
Clark said they’ve offered discounts to get more members, but it’s not even making a difference.
“Even lowering prices is not attracting people. He’s just giving a discount to people who are already coming and it’s kind of a cycle.”
Clark believes that boutique gyms have had the most problems.
Global News spoke to other gyms who say their membership sales have been going pretty well.
GYMVMT Regional Sales Director Dennis Gardner said that across the province, gyms have seen membership increase to nearly a pre-pandemic level. He said that inflation has not yet affected demand.
“People really wanted to get back into that gym and be a part of that community again,” Gardner said.
“What we’ve seen is that people will make their priority spending decisions elsewhere and prioritize fitness at a much higher level.”
gardner said GYM locations are full-service commercial gyms, offering strength training and plenty of fitness classes.
The group fitness and personal training business took a hit during the pandemic but has rebounded, despite having to raise prices “slightly” due to inflation.
“We’ve seen a lot of interest again in our group fitness program and our personal training services are really making a comeback.”
breathe fitness personal trainer Nicole Lark said they’ve also seen membership hold steady over the past few months. She also had to raise prices, but that doesn’t seem to be a deterrent.
“People felt the negative impact of not being active, and when something is taken away from you, you realize how important something is to you or how much you value it,” Lark said.
She said that since the restrictions were lifted, there has been more interest in personal training than before COVID.
“I think instead of compromising their workouts, they’re looking at other areas in their life that they don’t find they value as significantly.”
Some people have adjusted how often they go or found a partner to pay less.
“Some clients have asked to come in for maybe three sessions to two sessions a week, or 45 minutes to 30 minutes,” Lark said.
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