Latviski English По-русски
Monday 18.12.2017 | Name days: Klinta, Kristaps, Kristofers, Krists

City Fitness to invest 400 000 lats in two new gyms

(+2 rating, 2 votes)

Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RU, City Fitness Board Chairman Eriks Nadzins

City Fitness Board Chairman Eriks Nadzins

We plan to invest 400 000 lats in two new fitness clubs to be launched in Riga at the end of the year, City Fitness Board Chairman Eriks Nadzins told the business news portal BNN.

He also gives his own description of the average client of a gym in Latvia and points out this business requires huge investments, thus it is not possible to break even in a short period of time.

How many clubs does City Fitness have and how big is the staff?

Currently, we have five clubs with 60 employees, but we plan to open two more gyms by the end of the year. The premises are under construction and we already know they will be located in the shopping centres Domina and Sky&More. Moreover, the total investments hit 400 000 lats.

What impact did the crisis have on the company? Did you have to cut jobs?

It did, of course, hit also us. People subscribed less, yet we reacted quite rapidly by reducing the prices by 50% and changing the strategy completely. Similarly, we also optimized a lot of costs, changed suppliers and cut current expenditure on electricity, water, ect. We tried to economize in any ways we could. I must admit, though, when we started the optimization process, I had certain doubts, however, this reaction lead us through the crisis quite stable. We did not dismiss anyone, neither did we cut salaries. The position was categorical – to cut the costs without lay-offs and keep the quality.

What effect did the downfall in Latvia have on the fitness clubs sector in general?

It did have a negative impact. Many gyms were forced to shut down. Similarly, I also know a number of clubs in the regions of Latvia that went bankrupt, because clients simply did not come.

Can this business be regarded as profitable, what challenges do you face?

No, it is not. I’d rather say it is expensive as no less than 200 000 lats is necessary to open a club. People in Latvia are quite choosy. They want to pay little or nothing, but get the best quality. As soon as the price is up one lat to make some improvements, they dismiss the offer immediately.

Sports club business requires a clear vision of what you want, because it does not allow to break even in one or two years. At least two years are necessary to gather loyal clients. Moreover, the business demands meeting high standards of our own and those set by the state. In addition, one must also bear in mind clients activity is seasonal.

How fierce is the competition in Riga, how do you manage to maintain the market position?

We do not turn much attention to competitors. We develop and improve without considering the activities of others. What we do care for is clients and we try to meet their wishes. We have noticed the competitors copy us, not vice verse. Still, there is competition, of course, because there are not much people in Latvia that engage in sport. However, we realize only those who evolve can keep existing, so we try to introduce something new in every gym. This is how we strengthen our positions. The two new clubs will also surprise clients with innovative solutions.

How much has been invested to develop City Fitness?

200-300 000 lats is a sum necessary to launch a club. Standard interior and equipment alone require huge funds.

So, can we say 1 million lats has been invested in City Fitness over 12 years?

Exactly, the total investments really hit a million lats.

To what extent does location matter, does this have an impact on the turnover?

It’s a decisive factor. The gym must be easily reachable and with a parking lot. Most of people do not want to travel long from their homes or work places to reach a fitness club.

What impact do seasons have?

We split the year into seasons. The biggest number of clients is observed in September when the weather worsens and it gets more rainy. The numbers spike up to November when people start saving for Christmas presents. The next surge is in January up to June, which is the top season. Starting from June the number of clients drops down to even 30% a month. August is the worst of all – very few people come.

But what is positive here is that we can carry out some renovation, repair equipment and start preparing for the new season. Then, we launch a campaign in September and the numbers surge again.

Who goes to sports clubs more often: men or women?

There is 5% more women, maybe because there are more women in Latvia. However, most probably, this is due to the fact women come together with other women, while men mostly come alone.

How would you characterise the average client in Latvia?

It is about 50:50 between Latvian and Russian speaking people, most often aged 20-40. Often, in the mornings, there is an impression the clients do not work. Whereas, in the evenings, we see many well-paid people. But, still, it is not always so, because sometimes there is an impression those who make the most also save the most.

For the most part, people come three times a week and renew subscriptions regularly.

How sporty are Latvians?

In terms of gyms, unfortunately, it is about 1.5% of the total population. The biggest activity is in cities and it is near 0% in regions. To compare, the percentage hits 8% in Europe and 25% in Iceland. Speaking about Latvians in particular, I believe they should be more sporty.

What are City Fitness plans?

As I have already mentioned, we will open two new gyms in November or December. The space will be approximately the same as in other clubs, slightly more than 1 000 m2. However, we will surprise clients with equipment and activities they have not yet seen in Latvia. But I would not like to disclose this yet.

Do you also plan entering the regions of Latvia as well?

We were considering that before the downfall, but when the crisis stroke we abandoned the idea, neither do we plan to return to it in the nearest, say, five years.



Leave a reply

  1. Sports gal says:

    It is great new to hear there will be two more clubs. The one equipment I am crazy about to see in the clubs, is so called “Bodpod” – a machine that measures everything about a body, the percentage of fat, muscle and everything else in a body. Until now I have only had the opportunity to use this in Sweden, but I hope Latvia will hear about this some time soon!

    Thumb up 0 Thumb down 0

    • viagra canada says:

      Might you personal message everybody with just about any ideas about the way in which chose to make this websites appear like this method , I’d thankyou!

      Thumb up 0 Thumb down 0

  2. Jimmy says:

    There are many gyms in Riga, but this is one of the best ones.

    Thumb up 0 Thumb down 0

Week in Lithuania. Lithuanian doctors to offer voluntary test on alcohol habits

Lithuania's Health Minister Aurelijus Veryga has drafted a new scheme for residents attending health care institutions to fill out tests that would reveal whether the person's drinking habits signal a possible addiction.

Citadele Index: businessmen are more optimistic about economic growth

After a four-year gap, optimism has been noticed in all of Latvia’s business sectors. For the third consecutive quarter Citadele Index value exceeds 50 points. Businessmen are also positive about the country’s economy and their own finances, according to the final Citadele Index study for 2017.

Bank of Latvia increases GDP growth outlook to 4.7% for 2017

Bank of Latvia has decided in increase gross domestic product growth outlook from 4.2% to 4.7% for 2017, as reported by the bank’s governor Ilmārs Rimšēvičs.

Latvian residents’ opinion of government’s work remains negative

Latvian residents voiced the biggest degree of dissatisfaction about the development of the situation in Latvia and the work performed by the government. Although the previous evaluation of government’s work had increased by four points, it has since declined by two points, according to data from Baltic International Bank’s Latvian Barometer.

Eel fishing to be restricted in Baltic Sea for three months

European Union Fisheries Council has decided to restrict eel fishing for three months in 2018 in all waters, including the Baltic Sea. Although the World Wide Fund for Nature and environmental organization in Europe view it as a notable first step, these efforts are unlikely to have a major impact on the most important problem – eel population continues declining rapidly, as noted by WWF.

LCCI: increase of electricity bills for thousands of companies in unacceptable

Latvian Chamber of Commerce and Industry (LCCI) categorically opposes increasing electricity bills for the majority of small and medium-sized companies due to mandatory procurement component’s differentiation. The organization believes that this would basically introduce a new additional tax, making them even less competitive.

Head of Latvian Association of Regions to spend Christmas thinking on remaining in the party

Dissatisfied with multiple decisions made by Latvian Association of Regions (LAR), Riga City Council member Mārtiņš Bondars will spend the holiday thinking about his place in this political party, as he mentioned in his interview to Rīta panorama or LTV.

Estonian fund permitted to purchase several Latvia energy production companies

Latvian Competition Council has permitted Estonian fund to purchase several energy production and agricultural companies.

Meat processing giant sees room for growth in ready-to-eat foods

Consumption in the meat market segment of ready-to-eat foods is growing quickly, evaluated Finnish meat processing group HKScan that is planning to invest eight million euros in its factory in Estonia.

To fight for national minority schools, Russian representatives promise to hold a referendum

Defenders of Russian schools in Latvia promise to organize a referendum for autonomy of national minority schools, said co-chairman of Latvian Russians Association Miroslavs Mitrofanovs in regards to the transition to education only in Latvian language.

Tax payment process from capital growth to change in Latvia

As part of the tax reform, changes will be added to the Personal Income Tax Law starting from 1 January 2018. One of the changes is associated with payment and declaration of income from capital growth. The tax rate and the term for submission of declarations on income from capital growth will change next year.

Tusk deems EU migrant quotas ineffective as some states oppose taking in migrants

Donald Tusk, the head of the Council of the European Union and chairman of this week's EU summit, has evaluated that mandatory EU-wide quotas are ineffective and that there is a split between east and west as regards asylum policy.

Riga City Council’s 2018 budget – poorly planned or well-developed?

As the vote for the 2018 budget of Riga City Council draws near, representatives of all opposition parties say they will not support it as long as politicians of the ruling coalition continue viewing the city’s most important financial document as good and aimed at development.

Euro area economy has grown quicker than expected, European Central Bank estimated

Growth has been at a faster pace in the eurozone prompting the European Central Bank to raise its economic growth forecasts.

Weekends in Latvia expected to be snowy

A layer of snow will form in Latvia’s central and western regions that will remain until the middle of next week, as reported by State Environment, Geology and Meteorology Centre.

Opinion: Latvia at risk of restricting healthcare to 300,000 people

Kustība Par! political party has sent a letter to Latvia’s President Raimonds Vējonis, asking him to return to the Saeima the recently approved law on healthcare funding legislative draft. According to the party, the law restricts healthcare for 300,000 people in Latvia.

Lithuania’s 2018 budget focuses on spending cuts, NATO commitment and social security

Lithuania's 2018 budget, approved this week by the Seimas, Lithuanian Parliament, makes history for being the first budget ever with fewer spending for the governmental sector, the commitment to NATO of earmarking 2 per cent of the gross domestic product to defence and bigger allotments for social security. The budget was adopted by 84 MPs, 29 voted against, with 15 abstentions.

EU member states have to strengthen measures against sexual abuse of children

Member states of the European Union have to take more serious measures and cooperate more intensely with Europol and information technology industry to better combat sexual abuse of children, as noted by members of the European Parliament.

Latvian parliament views initiative for changing VAT rate for food product

On Thursday, 14 December, Latvia’s Saeima made its decision on the collective application that proposes reducing VAT on everyday healthy food products and increasing VAT on unhealthy products.

Maxima: residents have become more conservative in their choice of products

In Q2 and Q3, a higher degree of conservatism was noticed in residents’ choice of products. The number of buyers who gladly purchase new products has declined, whereas the number of buyers who do not change anything in their purchasing habits has increased, according to results of a study performed by Maxima.

Civil processes to be sped up and simplified in Latvia

On Thursday, 14 December, Saeima supported amendments to the Civil Process Law in the final reading. Amendments propose several major changes to the process of review of civil processes to make court sessions quicker and more efficient.

State Auditor dissatisfied with parliament’s slow legislative process

Latvian State Auditor Elita Krūmiņa plans to inquire to the Saeima about the delay with the approval of the legislative draft on the expansion of authority of her institution, as she mentioned in an interview to Rīta panorama programme of LTV.

Aldaris commences exports to France, China and Netherlands

Aldaris concludes 2017 with three new export contracts, commencing exports of products to China, France and Netherlands. Until now Aldaris has exported products to eight markets, with the largest one being United Kingdom, taking up 78.71% from Aldaris export volume, as reported by the company.

Estonian budget passed with 0.25 billion-euro deficit

The Estonian Riigikogu with 55 votes against 41 has passed the country’s 2018 state budget bill planning to spend by 0.25 billion more than it is planned to earn.

AFSAL: loan requests in non-banking industry are declined in 69% of all cases

In the first six months of 2017 Alternative Financial Services Association of Latvia (AFSAL) issued a total amount of EUR 84.7 million in consumer loans. No increase is noted in this amount when compared with the same period of 2016. Increase did not exceed 0.2%, as reported by the association.

Most read

Most commented

When do you go shoping for Christmas gifts?

View Results

Loading ... Loading ...

Polls Archive

Category feed: Feed: