PureGym’s Expansion into Saudi Arabia
We conducted a market assessment and commercial due diligence for a franchise partnership between PureGym and Ektimal.
We were engaged by Ektimal, a company specialising in fitness investments in Saudi Arabia, to assess whether to enter a franchise partnership with PureGym. PureGym is Europe’s 3rd largest gym chain by members with a high-value, low-price offering. This partnership would be the first PureGym franchise, with all previous gyms being owned and operated solely by PureGym.
We analysed the market to establish the demand for this new proposition within Saudi Arabia. This required examination of potential growth, the competitive landscape, and the impact of Covid-19. The data gathered also enabled us to confirm the appropriate pricing strategy for the market and an assessment of key details within the franchise agreement.
In December 2020, the new franchise partnership between PureGym and Ektimal was announced, including a commitment to open 40 clubs by the end of 2025.
Portas’ analysis enabled the client to make an evidence-based decision, with an up-to-date outlook on the responses of consumers to Covid-19.