No.1 Fitness has had a challenging year within the fitness equipment sector, which has seen decline in the past 12 months.
Some operators have closed down and another major player scaled down their operations in the past 18 months. The expansion of 24/7 cheap subscription gym formats and new fitness trends have been the main impact on the fitness market during the period.
Accordingly, some key categories such as treadmills, elliptical machines, and home gyms within No.1 Fitness experienced reduced sales compared to the previous year. Other categories performed very well to offset some of this impact – especially trampolines, which grew in double digits from last year. New categories such as wearable tech continued to grow, as did weights and bars, yoga accessories and rehab equipment.
Much work has also been done on refining brands and categories that are suited to our customers – with the goal of improving availability and selection for shoppers as well as increasing returns through better stock turns and reduced working capital.
From a customer perspective, No.1 Fitness continued to evolve its marketing activities, investing more into digital channels such as Facebook, YouTube and Google while reducing spend and activity through traditional channels. The Call Centre started using a customer relationship management programme for the first time, which will enable improved insights and data to help the customer experience, as workflows and reporting are evolved in the year ahead.
Another focus during the year was on improving efficiencies and a major transition in logistics was completed with the shift from Hamilton back to Christchurch as a hub for importing stock from overseas. The benefits from this change will see reductions in cost of goods sold and operating costs in the new financial year.
Our focus in FY17 will concentrate on evolving our offering to provide a better choice to our customers and drive sales while we continue to improve the efficiency of our business.