THE MARKET OF FITNESS INDUSTRY FELL BY 20%

The association of fitness industry operators released sad statistics. Anti-epidemic measures that were introduced in March by the Russian authorities led to the closure of all fitness centers. Now, when the restrictions are gradually being lifted, and the business is preparing to resume the work of the enterprises, the representatives of the professional association calculate the losses.

Before the introduction of the self-isolation regime, about 360 sports clubs operated in Moscow alone. Now, according to the president of the association, Olga Kiseleva, only 270 centers, including small studios and large multifunctional complexes, can resume work. According to Kiseleva, from 15% to 20% of the enterprises did not survive in the pandemic. Given that more than 75 thousand employees previously worked in the fitness centers of the capital, after the restrictive measures are lifted, 10 to 15 thousand employees will be left out of work.

According to the experts, the main reason for the losses, incurred by the fitness services market, was the lack of financial mechanisms to secure the work of the companies in crisis.

A significant part of fitness clubs in recent years has been working exclusively at the expense of the working capital.

It is logical that as soon as the sales of services were discontinued from March 2020, the source of financing for the companies instantly dried up. At the same time, many institutions found it impossible to leave full-time employees without full income.

In this situation, the state chose to support the large network players. Previously, Rusbankrot already published an article about the appeal of Olga Slutsker, who “scared” the ministers of the Russian government with the possible bankruptcy of the World Class fitness network in April. As a result, the company entered the list of backbone enterprises and got the right for obtaining some of the benefits, necessary for survival. However, the majority of the fitness clubs, operating in Moscow, have not received any help from the state.

Before the start of the spread of coronavirus, about 1800 objects of the fitness industry were functioning in Moscow.

Now many of them have begun to prepare for the resumption of work, being informed by the mayor of the capital, Sergei Sobyanin, that from 23 June, swimming pools, fitness rooms and fitness centers will be allowed to open. However, as Olga Kiseleva noted, a significant part of the facilities have already decided to completely terminate the activities.