The Year That Changed Fitness Forever

In less than a year’s time, the fitness industry has been transformed.

Unprecedented is an understatement; almost every day, there was news that altered the landscape as we know it.

So today, in an attempt to make sense of months that blurred together, we’re looking back. Here are the headlines that leave no doubt, 2020 changed fitness forever.

Setting the Scene

In the final months of 2019, and early in 2020, a few fitness storylines stood out.

With $285M in new funding, ClassPass became 2020’s first unicorn. After its IPO and ill-fated Christmas commercial, Peloton still had a lot to prove. Meanwhile, Xponential Fitness and F45 Training planned public offerings of their own.

Around the same time, Barry’s was reportedly shopping itself for $700M. Equinox added an investment to fuel its forthcoming digital platform. Flywheel shuttered its at-home business. Then, Town Sports International planned to acquire Flywheel’s studio business.

The Shutdown Begins

On March 13, President Trump declared a national emergency. By March 16, most major fitness chains had closed. Soon, ClassPass saw its global revenue fall by 96%. Similarly, MINDBODY reported that 95% of its 60K fitness and wellness partners were shut down.

The Industry Pivots

Posting free content online was the stopgap solution to temporary stay-at-home orders. As time went on, brands needed a new business model to survive. When layoffs hit, fitness professionals transformed into digital creators, setting the stage for widespread disruption to come.

Home Fitness Takes Hold

With gyms closed, interest in home fitness equipment increased by 500%. Free weights sold out while Peloton, Mirror, Tonal, and many others experienced record demand. Unsurprisingly, apps like Strava, Nike Training Club, and MapMyRun saw downloads surge.

Rogue Rises

As demand skyrocketed, Rogue Fitness scaled up. Since March, the Columbus, Ohio-based fitness equipment manufacturer doubled its workforce, increased its minimum wage to $25/hour, operated around the clock, and began making PPE for frontline workers.

Gyms Struggle

As spring turned to summer, prolonged shutdowns bankrupted 24 Hour Fitness, Gold’s Gym, Flywheel Sports, Town Sports, Cyc Fitness, YogaWorks, and Youfit. By some estimates, gyms have lost $14B in revenue since March. By year’s end, 25% of US gyms could close for good.

CrossFit Changes Hands

In a whirlwind of events, CrossFit saw its sponsors flee and its community revolt — leading founder and CEO Greg Glassman to sell off his fitness empire. Now, with Eric Roza—a seasoned executive and bonafide CrossFitter (athlete, coach, and affiliate owner)—at the helm, the $4B brand is eyeing a turnaround.

lululemon x Mirror

A move with implications across retail, fitness, and technology, lululemon acquired Mirror for $500M in cash. So far, so good — Mirror is on pace to do more than $150M in revenue this year. As Mirror founder and CEO Brynn Putnam shared on the Fitt Insider podcast, the companies were simply stronger together than apart.

Amazon Enters, Exits Fitness

In September, the newly announced Amazon “Prime Bike” sold out, causing Peloton’s stock to drop. Then, Amazon pulled the plug on Echelon’s so-called Prime Bike, scrubbing it from the site and saying: “This bike is not an Amazon product or related to Amazon Prime… Echelon does not have a formal partnership with Amazon.”

Recovery Booms

Preparing for and recovering from exercise has created a multi-billion-dollar category. Just this year, Oura Ring added $26M in funding, Hyperice secured $47M at a $700M valuation, and WHOOP led the way, raising $100M at a $1.2B valuation. From wearables to sleep and mindfulness, recovery is all-encompassing, making it all the more lucrative.

SoulCycle Stumbles

Last year, boycotts overshadowed the launch of SoulCycle’s at-home bike. This year, shutdowns stunted its studio business as delays plagued its digital platform. More recently, a report on infighting, discrimination, and a toxic culture has raised red flags. Now, with a new CEO, the company hopes to start anew.

Investors Flock to Fitness

Since March, investors have poured more than $1B into digital and connected fitness companies, including Zwift landing $450M, ICON Health & Fitness adding $200M, Tonal securing $110M, Tempo raising $60M, and Freeletics closing $65M. In related news, Strava’s $110M funding round valued the company at more than $1B.

Apple Unveils Fitness+

After announcing plans for a fitness subscription this spring, Apple has officially launched Fitness+. Integrated with Apple Watch and Apple Music, the service will cost $9.99/month or $79.99/year. Fitness+ has been painted as Apple’s “Peloton killer,” but that take is as lazy as it is misinformed. We broke it all down in Issue No. 97 and No. 76.

Peloton Pedals Ahead

In January, Peloton was worth $8B. Nine months and one pandemic later, Peloton’s stock is up some 300% with a market cap of $36B —a number on par with the value of the entire US fitness industry in 2019. Now, its biggest problem is keeping up with demand as it fends off a growing number of connected fitness competitors.

Looking to 2021

As impactful as this year was, the next-order effects still need to play out. Will members return to gyms? Can Peloton sustain its trajectory? And will digital fitness democratize access, helping more people get moving? Time will tell.

More from Fitt Insider

Fitt Insider is a newsletter and podcast dedicated to the business of fitness and wellness. 

Led by brothers Anthony and Joe Vennare, Fitt Insider provides decision-makers with analysis of an evolving industry. For more than a decade, the team has worked together to build health and fitness businesses. 

Combining operational expertise with industry-specific insights, Fitt Insider is a partner to organizations, investors, and founders defining the future of fitness and wellness.