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After one year in the CEO seat at The Gym Group, Will Orr says The Next Chapter growth strategy is going well and more expansion in the UK is planned.

Interviewed in this month’s HCM, Orr – who also spoke at last month’s inaugural HCM Summit – joined The Gym Group, in late 2023 from Times Media. He has masterminded the three-pronged Next Chapter growth strategy to take the low cost operator forward, which was unveiled earlier this year.

The strategy has three pillars: Strengthen the core, Accelerate the rollout of quality sites and Broaden our growth (new revenue streams.) So far the emphasis has been on the first two parts and the half year results suggest the plan is working.

“We’re building a track record of consistency of delivery and are making early progress on The Next Chapter growth plan,” he says. “Investors’ growing confidence in what we’re doing is encouraging to see.”

Retention is an area which has been prioritised and Orr has used his skills in selling newspapers. He says it’s about developing a habit, especially in the early days: “It’s about helping members quickly understand the value of our product and service so they establish a habit and about congratulating and encouraging them when they come regularly.”

New members are encouraged to have an induction, meet a PT, set objectives and build a programme. Data and analysis is being used to understand the customer behaviour: why they joined, why they leave and what encourages them to stay.

Pillar one in the strategy growth plan was to get the most out of the existing 240 sites and 900,000 members as possible: “With more than 900,000 members even incremental improvements to retention can make a huge difference to the economics of the business.”

There are plans for a modest price rise, of about £1 a month, but this will make a difference across the estate. At the same time value is being added. For example, Hyrox is being rolled out across the estate and will be in 120 gyms by the end of the year, making it the biggest Hyrox training club in the UK. On-demand boxing workout, Box12, will be added to five gyms in 2025.

In terms of more sites, international growth isn’t currently on the agenda, as Orr believes there is still plenty of headroom for the HVLC gym market in the UK.

“I would expect to reach 300+ locations in the not too distant future. I certainly see us opening a lot more gyms,” he says. “At this stage, we’re focused on the UK. I wouldn’t rule out overseas expansion at some point, but there’s just so much opportunity within our core business in the UK that we don’t have any plans to expand internationally right now.

“We’re absolutely focused on making the company as good as possible for our members, our new members, our people and the communities we serve,” says Orr who believes it’s possible to simultaneously benefit investors, serve communities, create social value and be part of the government’s preventative health agenda.

Read the full interview in the latest HCM here.