German Fitness Group Mrs. Sporty’s new CEO sets sights on Poland

Antje Lausch has been announced as the newly appointed chief executive for Mrs. Sporty. As the second chief executive of the company, her position is expected to improve the approach to a gym concept by women in Germany; there are also plans to expand the business into other countries such as Poland, Italy, Russia, and the United States. Lausch previously occupied the position of the chief operating officer at the company for the past four years after several years of being a sales manager. She was a part of the first team at the company when she joined as the manager of the company’s first club which was opened in Berlin, 2004.

Antje Lausch is taking over from Oliver Schulokat who left the company in October to manage a franchise and licencing business called McFit, a leading rival from Germany. Niclas and Valeria Bönström are the chief executives of the company they established the brand Mrs. Sporty, and there are other partners. Together, they have built a franchise network which now has about 213,000 members and a sales of 94 million Euros as recorded in 2014. This figure is known to have increased over the last years, however; there have been no confirmed reports.

 Germany remains the most significant market in the industry with 410 clubs spread around the country. Other locations of its clubs include Austria, Switzerland’s, Poland, Italy, the Czech Republic, and Russia. Mrs. Sporty has embarked on a study of the female consumers in Spain where one of its partners opened a franchise over two years ago. Mrs. Sporty plans to open a master franchise in Spain. The company’s expansion drive is supported by the impressive sales of its Pixformance Smart Trainer, an electronic training device that recognizes the users, creates customised plans for them and helps them manage the fitness plans.” Pixformance updates the concept of circuit training, and it makes the franchise more profitable.” said Lausch.  “We have always had a strong level of assistance, but with the Pixformance, you have individual exercise plans which enable the gyms to charge a little more,” she explains. Lausch also claims that the launching of Pixformance has increased the revenue from each member by € 8 monthly. This accounts for a substantial income for clubs that have as many as 330 members such as the clubs in Germany. Many club owners rent the electronic trainers from Pixformance while others purchase the device.
Pixformance trainers are currently being used in about 555 of the Mrs. Sporty gyms while thirty of the clubs have adopted the Full Pix concept. The Full Pix concept includes the equipping of the entire club with the electronic trainers. There is a five-year plan to incorporate the use of the Pixformance in all the club locations and new franchises. Lausch targets to achieve an ambitious plan to increase the number of franchises in Poland from 25 to 75 by the end of the year. “The Polish clubs we already have are performing strongly,” she said, “Polish women are very active, and they take care of their appearance, but there is a little competition for our concept in Poland so far.” In contrast with the situation in other countries, Mrs. Sporty has appointed master franchises in Poland and Germany.
Regarding the lower costs in Poland to join the gyms, the standard monthly fees have been set at 149 zloty (€34), compared with the € 43.99 which is charged in Germany. Mrs. Sporty established its presence in Russia and the Czech Republic last year. The achievement of 300 members in these regions will encourage the appointment of a master franchise and to more subsidiaries this year which will be an opportunity to start selling its concept while developing the market.

Mrs. Sporty has announced more ambitious plans for this year. It plans to launch the brand in the U.S. market. Lausch has affirmed her confidence in the ability of the Pixformance to attract the American women to adopt the Mrs. Sporty concept. The group managers have been evaluating the market, and it is expected that an opening will be announced before the year ends. It is, however, unclear whether the launch in the American market will be supported by Mark Mastrov, the fitness club concept developer who has for a long time encouraged the expansion of Mrs. Sporty.

The American venture

Lausch has also speculated that there are many opportunities for Mrs. Sporty to expand in the German market. “We want to make sure that all German women have access to a Mrs. Sporty not far away,” she also stated that about 70% of the market had been covered and the target is to achieve 100% coverage in two or three years. To achieve this goal, Mrs. Sporty’s chief executive stated that about 200 clubs would need to be opened in Germany. There are some opportunities that should be used in the south and in the central parts of the country as well as the western parts where many of the clubs have been established.

Over the last years, Mrs. Sporty has received numerous awards. The company reports that its attrition rate reaches as high as 36% annually, while the renewal rate is about 85% to 90% for the franchises and above average for franchises in Germany. Lausch is in charge of the company’s operations in Germany and abroad while Niclas Bönström manages the financial aspects and Valerie Bönström handles the efforts at achieving international expansion.