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For the second time in two days, the Colorado football team has added a cornerback recruit to the 2026 class.

At the ATN Innovation Summit, McKinsey and L Catterton insiders laid out what it’ll take to survive and thrive as consolidation reshapes the fitness industry

The fitness and wellness industry is entering a pivotal era of consolidation, one that will define which companies emerge as long-term winners and which are left behind.

That was the consensus among industry leaders during a panel discussion moderated by Edward Hertzman, founder and CEO of Athletech News, at the ATN Innovation Summit 2025. Key insights came from Eric Falardeau, partner at McKinsey & Co., Jeff Rudnicki, senior partner at McKinsey, and Marc Magliacano, managing partner at L Catterton.

The conversation was anchored by a newly released letter from McKinsey urging operators to rethink their strategy and positioning before it’s too late. 

“The sector is consolidating quicker,” said Falardeau. “This is not a new thing, but it’s consolidating quicker and that has implications for strategy… What will it mean to win in five years versus in the last five years?”

Differentiation Remains Key

As companies face tough questions about what’s next, one segment is charging ahead: high-value, low-price (HVLP) gyms. Magliacano pointed to a surge, fueled in part by demand from women integrating strength training into their everyday routines.

“You’re going to have ongoing massive growth in boxes and clubs in the U.S.,” he said.

To stay competitive, clubs need to create a clear point of differentiation around their model, something that draws members in despite rising options.

“So people will drive past brand A, B, and come to your brand C,” Magliacano said. 

“Today, I will tell you, the data says the members are very satisfied with their current HVLP operator,” he added. “Everyone’s happy, but at some point, when you’re trying to get that incremental member to your club, you’re going to have to showcase differentiation.”

Rethinking Aggregators 

As the fitness and wellness industry evolves amid consolidation, panelists highlighted employers as a powerful gateway.

“I really like the idea of well-operated fitness clubs… and aggregators, especially the ones that are going through employers to help make real partnerships with HR, in big businesses, to truly expand the number of people that adopt habits,” Falardeau said.

Magliacano echoed that sentiment, citing L Catterton’s investment in EGYM’s Wellpass and ClassPass. He also challenged long-standing assumptions about aggregators. 

“Some of those old paradigms of aggregators are bad, and it’s all about operational excellence within the fitness club segment – that’s all we need. That’s true today,” he said. “I just don’t know in the next five to 10 years.”

M&A Moves to Center Stage

Rudnicki didn’t mince words when addressing misconceptions about M&A.

“Seventy to ninety percent of deals do not fail. If you’ve heard that, that’s wrong,” he said. “It’s almost the opposite. The companies that remain the best for a long time are also the best at M&A. The company you’re thinking of when I say, ‘What’s a company that you admire that’s been great for 10-plus years?’ I promise you their M&A function and capability is the secret.”

But M&A success, Rudnicki cautioned, requires careful planning and an honest assessment of organizational abilities. 

“M&A is not a strategy. M&A is a tool,” he said. “What capabilities do you need that M&A can provide? What can you do quicker or better through acquisition than you can build in-house?”

Rudnicki urged executives to build a “proactive sourcing engine” to identify targets aligned with long-term goals. That includes moving beyond financial due diligence to evaluate strategic fit and cultural compatibility.

See Also

“Acquiring and integrating your closest competitor is going to be a lot different than acquiring and integrating a digital offering, something in a different space,” he said.

Together, the panel called for a shift in mindset. Rather than simply asking, “What’s our M&A plan?” operators should be asking: “What’s our strategy, and how can M&A accelerate it?”

Small Operators, Big Opportunities

While much of the conversation focused on large-scale consolidation, the panel was clear that smaller operators are far from doomed, as long as they remain proactive and adaptive.

“If you’re an independent health club operator, it doesn’t mean you can’t win,” Magliacano said. “Fitness club service, as I’ll call it, is a local business. Local business is high touch, high emotion, high brand love, high member love. So you absolutely have the right to win. It’s just going to be different tomorrow, and so really, being prepared, the ‘how to win’ will be different than the way you may have won yesterday.”

The key, panelists said, is building a moat through differentiation and community connection – advantages big brands often overlook.

“If you really think about your business and what you can do in your local market… you have the grand advantage to go out there and create your own moat that will allow you to continue to thrive and prosper against some of the bigger names,” Magliacano added.

Falardeau reinforced that view.

“There’s room for more than one winner, and there’s room for winners of different sizes,” he said.

This article is based on a live discussion held during the ATN Innovation Summit 2025, a two-day event dedicated to the future of fitness and wellness. See here for more Innovation Summit coverage. 

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Newark residents have discovered a fitness revolution that’s changing how they approach their health and wellness goals. The city’s fitness enthusiasts are embracing virtual fitness clubs that offer the perfect blend of convenience, community, and cutting-edge workout technology right from their living rooms.

These digital fitness platforms have become lifelines for busy Newark professionals, parents juggling multiple responsibilities, and fitness enthusiasts who want premium instruction without the hassle of commuting to traditional gyms. The transformation has been remarkable, with locals reporting higher consistency in their workout routines and stronger connections to fitness communities than ever before.

The appeal extends beyond mere convenience. These virtual fitness clubs offer Newark residents access to world-class instructors, diverse workout styles, and flexible scheduling that adapts to the unique rhythms of urban life. Whether someone works shifts at Newark’s busy port, commutes to New York City, or manages a household, these platforms provide fitness solutions that fit seamlessly into their daily routines.

1. FitFlow Studio revolutionizes home workouts with live interaction

FitFlow Studio has captured the hearts of Newark fitness enthusiasts with its innovative approach to virtual training that makes participants feel like they’re actually in a premium boutique studio. The platform’s secret weapon lies in its real-time interaction capabilities that create genuine connections between instructors and participants, despite the physical distance.

The virtual studio offers an impressive variety of classes throughout the day, accommodating Newark’s diverse work schedules. Early morning sessions cater to commuters heading to Manhattan, while evening classes serve those returning from long workdays. Weekend programming includes family-friendly options that have become particularly popular among Newark parents looking to involve their children in active lifestyles.

What sets FitFlow Studio apart is its sophisticated technology that allows instructors to provide personalized feedback during live sessions. Participants can receive form corrections, motivation, and modifications in real-time, creating an experience that rivals in-person training. The platform’s camera positioning guides help users optimize their setup for maximum instructor visibility and feedback.

The community aspect has proven especially valuable for Newark residents who might otherwise feel isolated in their fitness journeys. Virtual workout buddies have formed organically through the platform, with many participants scheduling regular sessions together and supporting each other’s progress outside of class times. This social connection has helped combat the loneliness that often accompanies home workouts.

The platform’s diverse instructor roster brings expertise from various fitness disciplines, ensuring that Newark residents can explore everything from high-intensity interval training to restorative yoga without leaving their homes. Monthly challenges and achievement tracking keep participants engaged and motivated to push their boundaries.

2. Urban Pulse Fitness creates neighborhood-specific workout experiences

Urban Pulse Fitness has gained tremendous popularity among Newark locals by recognizing that city dwellers have unique fitness needs and preferences. The platform specifically designs workouts that acknowledge the realities of urban living, from small apartment spaces to the need for stress relief after navigating busy city life.

The platform’s apartment-friendly workout library has become a game-changer for Newark residents living in compact spaces. These carefully designed routines require minimal equipment and generate low noise levels, making them perfect for apartment buildings where neighbors share walls and floors. The workouts maximize results while respecting the urban living environment.

Stress-relief programming has resonated particularly well with Newark’s working population. After dealing with traffic, crowded public transportation, and demanding work schedules, residents find sanctuary in Urban Pulse’s meditation sessions, gentle yoga flows, and mindfulness-based movement classes. These offerings address both physical fitness and mental wellness needs.

The platform’s flexible membership options cater to the varied economic realities of Newark residents. From students to young professionals to established families, Urban Pulse offers pricing tiers that make quality fitness instruction accessible across different income levels. This inclusivity has built a loyal community that appreciates the platform’s commitment to serving diverse populations.

Urban Pulse’s strength training programs have gained particular praise for their effectiveness in small spaces. The workouts utilize bodyweight exercises, resistance bands, and household items creatively, eliminating the need for expensive equipment or gym memberships. Newark residents appreciate the cost-effectiveness combined with professional-quality instruction.

The platform also offers nutrition guidance tailored to urban lifestyles, acknowledging the challenges of maintaining healthy eating habits when surrounded by fast food options and dealing with busy schedules. This holistic approach to wellness has helped Newark participants achieve better overall health outcomes.

3. FlexTime Fitness adapts to Newark’s around-the-clock lifestyle

FlexTime Fitness has become indispensable for Newark residents whose work schedules don’t conform to traditional nine-to-five patterns. The platform’s 24/7 availability and on-demand library cater to shift workers, healthcare professionals, service industry employees, and anyone whose schedule requires flexibility.

The platform’s extensive on-demand library contains thousands of workout options ranging from quick 15-minute sessions to comprehensive hour-long classes. This variety allows Newark residents to choose workouts based on their available time, energy levels, and specific fitness goals. Busy parents can squeeze in short sessions during lunch breaks, while others can enjoy longer workouts on weekends.

FlexTime’s adaptive programming technology learns from user preferences and performance to suggest increasingly personalized workout recommendations. Newark residents appreciate how the platform evolves with their fitness journeys, automatically adjusting difficulty levels and suggesting new challenges as they progress.

The platform excels at providing professional-quality instruction for those who might feel intimidated by traditional gym environments. Many Newark residents have discovered their love for fitness through FlexTime’s beginner-friendly programs that build confidence gradually. The non-judgmental virtual environment allows people to learn proper form and technique without feeling self-conscious.

Recovery and wellness programming has become increasingly popular among Newark’s active community. The platform offers guided stretching sessions, foam rolling tutorials, and recovery-focused workouts that help participants maintain their fitness routines while avoiding injury and burnout.

FlexTime’s integration with wearable fitness devices appeals to tech-savvy Newark residents who want to track their progress comprehensively. The platform syncs with popular fitness trackers and provides detailed analytics that help users understand their fitness patterns and optimize their routines accordingly.

The technology that makes virtual fitness work

The success of these virtual fitness clubs relies heavily on sophisticated technology that creates seamless, engaging experiences for Newark residents. High-definition video streaming ensures that participants can see instructor demonstrations clearly, while advanced audio systems deliver crystal-clear instructions and motivating music.

Interactive features like real-time heart rate monitoring, virtual high-fives, and progress sharing create community connections that rival in-person experiences. Newark residents frequently comment on how these technological elements make them feel connected to both instructors and fellow participants despite physical separation.

Mobile app functionality allows Newark residents to access their favorite fitness classes from anywhere, whether they’re at home, traveling for work, or visiting family. The seamless cross-device experience means workouts can start on a phone during a commute and continue on a larger screen at home.

Community building in virtual spaces

These virtual fitness platforms have successfully created genuine communities among Newark residents who might never have connected otherwise. Virtual workout groups organized by neighborhood, fitness level, or specific interests have formed organically, with participants supporting each other’s goals and celebrating achievements together.

Social features like leaderboards, achievement badges, and progress sharing have gamified the fitness experience in ways that keep Newark residents engaged long-term. Friendly competition among neighbors and coworkers has motivated many to maintain consistent workout routines.

The platforms facilitate connections that extend beyond fitness, with Newark residents forming friendships, organizing in-person meetups, and supporting each other through life’s challenges. These relationships demonstrate how virtual communities can create real, meaningful connections.

Accessibility and affordability advantages

Virtual fitness clubs have democratized access to high-quality fitness instruction for Newark residents across all economic backgrounds. The elimination of commute times, parking fees, and expensive gym memberships has made regular exercise more accessible to families and individuals with limited resources.

The platforms accommodate various physical abilities and fitness levels, offering modifications and alternative exercises that ensure everyone can participate safely and effectively. This inclusivity has attracted Newark residents who might have felt excluded from traditional fitness environments.

The future of fitness in Newark

The overwhelming success of these virtual fitness clubs among Newark residents suggests a permanent shift in how urban communities approach health and wellness. The platforms continue to evolve, incorporating new technologies like virtual reality workouts and AI-powered personal training that promise even more personalized and engaging experiences.

Local fitness enthusiasts predict that hybrid models combining virtual and in-person elements will become the norm, offering Newark residents maximum flexibility in how they pursue their fitness goals. The convenience and community aspects of virtual fitness have proven too valuable to abandon, even as traditional gyms reopen and expand their offerings.

These three virtual fitness clubs have transformed Newark’s fitness landscape by proving that effective, engaging, and community-focused workouts don’t require physical gym spaces. They’ve created sustainable fitness habits among residents who previously struggled to maintain consistent exercise routines, demonstrating the power of technology to remove barriers and create connections in urban environments.