True Fitness Closure Signals Pressure on Singapore Mid-Market Gyms
True Fitness and True Yoga closed all Singapore studios this month, showing how rising exercise rates do not help mid-market gyms facing niche and budget rivals.
Mid-Market Operators Feel the Strain
True Fitness and True Yoga abruptly ceased operations for all their Singapore studios earlier this month. Parent company Kontafarma attributed the closures to significant challenges, including the growing appeal of boutique studios, the prevalence of residential gyms, and the expansion of online training options.
This situation arises even as the fitness sector experiences what Sean Tan, co-founder and president of the Singapore Fitness Alliance, describes as a 'golden age'. Sport SG data shows 76 per cent of Singapore residents exercised weekly last year, an increase from 66 per cent in 2019. Samuel Gallo, co-founder of Surge Strength & Results, noted that market demand is not the core problem.
Shifting Consumer Preferences Drive Market Bifurcation
Traditional 'big box' gyms, like True Fitness, typically occupy over 15,000 sq ft and offer a broad range of facilities from cardio to strength training, alongside personal trainers, group classes, and recovery amenities. True Fitness's TFX club in Millennia Walk, for example, spanned more than 41,000 sq ft.
However, the market now bifurcates towards smaller, specialised boutique gyms, often 1,000 to 2,500 sq ft and focused on single modalities, and lower-cost 24-hour franchises such as Anytime Fitness, which are usually 4,000 to 6,000 sq ft.
High Fixed Costs and Leaner Models
Sean Tan of the Singapore Fitness Alliance explained that large gyms incur substantial fixed costs for rent, equipment, staffing, utilities, and maintenance. Profitability becomes difficult when facility utilisation declines. Consumers now have many alternatives, allowing them to switch providers easily and making membership revenue less predictable for conventional operators.
Damien Lee, a senior lecturer at Nanyang Polytechnic, noted that boutique gyms thrive by offering unique expertise and a strong sense of community. Budget 24-hour chains reduce overhead by operating smaller spaces closer to residential areas and often foregoing expensive built facilities like showers.
The struggles of mid-market gyms suggest a structural shift in Singapore's fitness industry, favouring either premium, niche offerings or highly affordable, convenient options. Commercial real estate owners and investors previously leasing large spaces to big box gyms may need to adapt their tenant strategies.
Smaller, specialised studios or compact 24-hour chains could represent more resilient tenants, given their lower operating costs and ability to integrate into neighbourhood retail. Existing mid-market operators must develop clearer differentiation or risk further erosion of their market share to both ends of the spectrum.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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