Virgin Active's big reset

BEYOND TREADMILL: NEW-STYLE GYMS' GOAL 'THIRD SPACE' PLAN WITH OFFICES → CEO bets on wellness, workspaces, social programming to fight churn, boost value.

- Moneyweb

FITNESS MEETS FUNCTIONALITY. Members are using the gym's co-working and meeting facilities. Picture: Bloomberg

(Bloomberg)

A bold plan by CEO Dean Kowarski to transform its Virgin Active clubs from simply gyms into a more integrated offering - with padel courts, ice baths, co-working spaces and meeting rooms — seemed somewhat curious when it was articulated a few years ago.

Kowarski, famously, came to the business from outside the industry through its acquisition of Real Foods, the owner of Kauai and Nu, in 2022.

He pushed the business towards becoming a more rounded operator within the broader “wellness” category. Core to this was refreshing the “look, feel and functionality” of its club estate.

Over the next three years, it sees a sizeable “increase in growth capex,” with “significant new club and club refurbishment capex”.