Planet Fitness, Hampton, New Hampshire, has struck a strategic development partnership with department store chain Kohl's, Menomonee Falls, Wisconsin, the companies recently announced. During 2019, Planet Fitness will open 10 health clubs that are 20,000 to 25,000 square feet directly adjacent to select Kohl's retail locations across the United States, with plans for additional openings in the future.
“In today’s evolving retail landscape, our differentiated approach to fitness continues to drive traffic to shopping centers across the country, and with over 12.5 million members, resonate strongly with consumers,” Planet Fitness CEO Chris Rondeau said in a media release. “We are excited to announce this initial expansion and partner with Kohl’s to drive new and complementary traffic to these locations, while introducing shoppers to our high-quality, judgment-free, fitness experience at a great value.”
In the same release, Kohl's CEO Michelle Glass said the new partnership is part of the company's plan to rightsize its retail locations.
“We continue to see our rightsizing strategy as an important initiative to not only leverage our real estate assets but also drive traffic to our stores through key partnerships,” Glass said. "We see the rightsizing strategy as a large opportunity for Kohl’s.”
Kohl's first announced its rightsizing strategy in 2017. The aim, after shrinking the footprint of a retail location, is to strategically lease or sell the remaining square footage.
Planet Fitness recently reported a 30.1 percent increase in its 2018 fourth quarter revenue, as well as a 33.3 percent increase in its annual 2018 revenue. The company opened 230 health club locations in 2018, bringing its total club count to 1,742 as of Dec. 31, 2018.
Planet Fitness recently ranked No. 9 on Entrepreneur's 2019 Fastest-Growing Franchises list.
The company also ranked sixth on Club Industry's Top 100 Health Clubs of 2018. It is is the highest-ranking franchisor on the list.