Xercise4Less and its CEO, Jon Wright, have something in common — both started out in the fitness industry as something different than what they are today.
Wright got his start in the industry as a rugby player for the Harlequins F.C., a rugby union team in the UK. From there, he transitioned into the role of manager and business owner, and most notably, founder of the budget gym chain Xercise4Less (formerly Xercise Health and Fitness, Ltd.), which he brought to life in 2006.
However, Xercise4Less wasn’t founded as a budget gym chain. Instead, a high-end model is what Wright had in mind for the brand, under the name Xercise Health and Fitness. “Originally, the company was set up to be a high-end fitness facility, which included everything from saunas, steam rooms, fitness equipment and teams of fitness instructors,” explained Wright. “However, I saw that the market was changing and the spending power of consumers was changing too. So it was decided that we would respond to those changes.”
As a result, Xercise Health and Fitness switched from a high-end model to a budget one in 2009, changing its name in the process to Xercise4Less. According to Wright, the company stripped out “non-essential” amenities, such as saunas and swimming pools, which allowed the company to bring membership prices down from £29.99 (approximately $48) to £14.99 (approximately $24), per month.
Currently, two membership options are available to consumers. At £14.99, members gain unlimited access to Xercise4Less with no restrictions. Or, for £9.99 (approximately $16), members can use the club between 10 a.m. and 4 p.m. on weekdays, with full access on the weekends.
Although a membership at Xercise4Less is now relatively cheap, Wright believes the experience members receive is anything but subpar. “We pride ourselves in the quality of facilities that we provide to our member,” he said. “And to show that we are committed to them and their fitness goals, we are constantly upgrading our clubs with new equipment. This commitment goes throughout all our clubs, and we have a reinvestment period every six months in which we give back to our members.”
In August 2013, Xercise4Less received a substantial investment of its own, when The Business Growth Fund invested £5m (approximately $8 million) into the business, which now boasts 11 locations (with three more in pre-sale) across the UK. “We have rapid expansion plans for the business and it is very exciting to see how they have changed,” said Wright. “Originally, the plan was to have 40 clubs by the end of 2016. However, now, we are planning to have over 100 clubs nationwide. I am very happy with the expansion that we have in place and how it has changed over the last number of months.”
A July 2013 partnership with Tesco, a U.K.-based supermarket giant, has facilitated that growth as well. As a result of the partnership, select Tesco stores will boast a Xercise4Less, in order to provide consumers with a unique, one-stop shopping experience.
“Tesco wants to offer their customers more of a full shopping experience, with more options while they do their weekly shop, and we want to make it easier for people to access our facilities,” said Wright. “Both our brands have great synergies, and I see this partnership getting stronger with each new club. This partnership has allowed my business to rapidly increase our growth plans, allowing us to plan to reach as many people in the UK as possible.”
The first Tesco-Xercise4Less hybrid opened in November 2013 in Stockton North, England, and Wright said more are in the pipeline.
According to Wright, the UK gym market is valued at around £4 billion (approximately $6.4 billion), and low-budget gyms are increasingly taking up market share. “Many consumers have changed the way they spend their hard earned money, and have realized that they don’t need to spend £50-plus per month on a gym membership,” he said.
A team of dedicated staff is what Wright believes helps set Xercise4Less apart from other low-cost gyms. “My staff members are the biggest asset of the business, and like our key assets, they also receive genuine development,” he said. “I manage the business to be successful and reward our staff that help us achieve that goal.”
However, quickly adapting is one factor that has been paramount to the company’s success as a whole. “We adapted and got into the market at the right time, and grew the business recognizing what the market wanted,” said Wright. “Through each new club that we are opening, we are looking at the key successes of each that we can then use on the next, making constant improvements and always striving to be the best in the industry.”
Photos courtesy of Xercise4Less.
By Rachel Zabonick
