INTERVIEW
ALUN PEACOCK
The MD of JD Gyms is taking the brand ‘from concept to roll-out’, powered by the financial weight of the JD Group. He talks to Kate Cracknell about creating a brand that isn’t just better, but totally different
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e’ve proved the model works,” says Alun Peacock in reference to the JD Gyms business – the premium lowcost gym brand he was brought in to launch under the umbrella of parent company and retail giant JD Sports in 2014. “We’ve fi ne-tuned the concept and have moved into the roll-out phase.” He takes a step back in his storytelling: “The JD business is very entrepreneurial and three years ago, having identified an opportunity in the market, it decided to trial a new gym concept and gauge the market’s response. “At that stage, we talked about proof of concept. The clubs had to make money in their own right, but we were relatively open-minded about the whole thing. We didn’t immediately set out with the goal of opening hundreds of clubs. The aim was simply to test the concept with a view to creating a nice business that would complement the core brand and make some money for the shareholders. “And we’ve delivered on that. We’ve created a complementary brand that further enhances JD brand awareness and that’s very profitable in its own right – we can get a club to profitability very quickly, in large part thanks to our highly successful, data-driven pre-sales process. “We now have the appetite to grow faster, and with the JD brand behind us we’re well-resourced to do so. By the end of this year we’ll have 16 sites, each at a fit-out cost of £1.5m–£2m, and we’ll open another 10 –12 next year. We’d even consider acquisitions if the right deal were to present itself.”
Striking a balance Yet in spite of the financial power that JD brings (see ‘JD Group’s acquisitions’, p32), Peacock still isn’t aiming for the sort of rapid growth we’ve seen from other low-cost operators. 28
healthclubmanagement.co.uk August 2017 ©Cybertrek 2017
The JD Gyms club interiors take inspiraton from modern retail design
“There isn’t going to be a race towards a certain number of sites. Quality is more important than quantity for us. We will increase the number of openings year on year, but we’ll continue to grow in the same way we always have: sensible property deals in locations that offer long-term sustainability for a successful business. “Our steady rate of growth is also driven by the way we do gyms: there’s an awful lot that goes into design. Batley – the 10th and latest site, which opened on 16 June – was two years in the making. That’s fairly exceptional, but it’s not unusual for us to take a year from viewing a site to opening it. Every elevation, every material we use, we micro-manage that process. That’s more of a challenge as you ramp up, but we aren’t willing to compromise those standards – even when, as will be the case later this year, we have a crowded club opening schedule. “So that’s really our biggest challenge: ensuring we don’t lose the JD Gyms’ quality by growing too quickly, versus