Richard Branson flexes fitness muscle . . .

Sunday mail, Oct 28 2007

HE'S shaken up our airlines and financial institutions, now Richard Branson is set to revolutionise Australia's fitness industry with a new chain of gyms across the country.

Queensland is shaping as the launching pad for Sir Richard's fitness brand, Virgin Active, with plans to open several centre’s in the state next year. Australia's fitness industry is booming and worth an estimated $1 billion a year -- double what it was five years ago. The Queensland share is $300 million. Stephen Butler, executive officer of Fitness Queensland, said the market was ripe for further expansion.

"It's booming already, but there is still more to come with Virgin Active reported to be setting up here in 2008," he said.

Virgin Active health clubs are already a huge success in Britain, South Africa, Spain and Italy.

Virgin Active first hit Britain and Spain in 2005, when it took over 13 Esporta health clubs. Last year, Virgin Active became Britain's second biggest fitness chain after a $1.5 billion takeover of the Holmes Place health club brand secured an additional 47 clubs.

The chain now has 165 clubs in Britain and Europe, 900,000 members, and nets Sir Richard a yearly turnover of $600 million.

Andrew McShea, Queensland spokesman for gym chain Goodlife, said he wasn't afraid of competition. "We know Virgin Active is looking to come to Australia, but it's not something Goodlife is concerned about," he said.

"We've got a strong foothold in Queensland and a bit of competition will help keep us on our toes. "It's also good for the industry and gets more people into health and fitness."

LivingWell bosses said they were also confident in their brand strength.
A spokeswoman said: "The Virgin Active launch is still quite under wraps at the moment so we don't have any details about where the clubs will be, but we don't anticipate it will have much of an effect on us." A Virgin spokeswoman said that the Australian Virgin Active launch had yet to be finalised.

"It is one of the areas we are looking at setting up here because it is a very successful chain overseas," she said.