Smart Fit, the currently third biggest gym brand worldwide regarding the number of open units, according to the International Health Racquet & Sportsclub Association (IHRSA) ranking, has ambitious plans for 2020 and Latin America will be the key to achieve them.
The company that it’s already present in Brazil (461 open units), Mexico (164 open units), Colombia (30 open units), Chile (30 open units), and most recently opened its first unit in El Salvador wants to have 1 new gym in Latin America every 36 hours. The information is from the Brazilian Media Outlet Exame.
Even the last reports of the company have shown that Smart Fit isn’t profitable yet, the expansion in Latin America is key to achieve its biggest goal: to become the second-largest gym brand in the world, considering unit numbers. That’s why 2020’s plan is to exceed the mark of 1.000 open units and reach 2.200 by 2024.
“When you are focused on investing in growing, it will always generate losses. We do, however, have investors looking to the long term,” stated Edgard Corona, Smart Fit’s founder and president in Brazil, to Exame.
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Although Smart Fit pilot is the low-cost gym model, the company is already looking for more profitable options and have also started to invest in studios focused on Yoga or group classes.
In November, the Canadean fund CPPIB acquired 12,4% of Smart Fit in operation of BRL 1 billion and it was all the company was needing to make it all possible. This value will be invested to achieve 2020’s goal of ending this year with 238 new gyms opened in Latin America, regarding the cost of BRL 4 million of each one.