Press Release - LONDON BOUTIQUE STUDIO Report 2023
13th November 2023
Consumer behaviours have changed, but the London boutique sector is stabilising post-pandemic; Leisure DB releases the London Boutique Studio Report 2023
There are now over 300 boutique studios across London, up 17.4% compared to 2018, and while openings are fewer than in the ‘peak boutique’ pre-COVID years, closures are also slowing as surviving brands stabilise and rebuild.
This is one of the headlines of the London Boutique Studio Report 2023, compiled by market intelligence expert Leisure DB – the first time the report has been published since its inaugural edition in 2018.
The average unlimited monthly membership fee has also increased by over 20 per cent in the last five years, and a 10-class pack by almost 15 per cent, with many boutique operators shifting towards the sustainability and security of a recurring monthly membership model.
These headlines are not to say it’s plain sailing in the sector, with finances hit hard, new funding difficult to come by and hybrid working changing consumption patterns; operator and expert interviews throughout the report point to ongoing consolidation and reinvention among boutique brands.
Other challenges include the ‘consistent discounting’ referenced by many of our interviewees. “It risks commoditising the boutique fitness product,” says Joanne Mathews of Ten Health & Fitness.
Staffing is another major concern, with post-pandemic working patterns reducing the talent pool available to city-centre studios, and new generations entering the workforce “with high expectations around pay and promotions, without the experience,” says Mathews.
Lack of clarity over what ‘boutique’ now means is another challenge, says boutique fitness expert Emma Barry, pointing to the shifting sands as “other fitness businesses take the elements of boutique and place them in their own spaces”.
The result, says Mathews, is that “one of the biggest threats to the boutique sector is now gyms, which is ironic given that when we started, we were the antidote to impersonal big boxes”.
And while many boutique operators now look to franchising as their path to growth, expert commentators warn that it won’t work for everyone. “I’ve seen a lot more boutique brands turn to franchising recently and I’m not convinced that all will succeed,” says BFT’s Cameron Falloon.
Yet “in spite of some permanent closures and a few brands falling into administration or liquidation, most have emerged leaner, stronger, more nimble,” says Leisure DB founder David Minton in his foreword to this year’s report. “Operators remain in the pioneering spirit, responding to changing consumer behaviours with creativity and passion.”
That creativity includes not only a shift to recurring memberships, but also extension of brand offerings and/or cross-brand collaborations, and continued provision of online content. “The future of boutique lies in the ability to reach scale. Consolidation under one brand represents a great opportunity to achieve that,” says Psycle CEO David Watt.
Covering all these topics and more, and with robust data on the sector’s performance at its heart, the London Boutique Studio Report 2023 makes for a fascinating read. Order your copy now – www.leisuredb.com/publications – and benefit from a 15 per cent discount using promo code LBSPOTLIGHT15 (valid until 31 December 2023).
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ABOUT LEISURE DB
Leisure DB is a leading independent specialist in the UK leisure sector, providing key market intelligence and analysis across the full scope of an increasingly diverse fitness industry. Established over 30 years ago, we work with a wide range of fitness operators, suppliers, consultants and investors to empower you with the insights and tools you need to make informed decisions and thrive in your market. www.leisuredb.com