(Sharecast News) - Low-cost gym operator the Gym Group announced on Friday that it has enlisted the expertise of Savills to assist in its site selection process, as it embarked on a strategic expansion plan.

The London-listed company said it was aiming to open around 50 new locations across the UK within the next three years, leveraging analysis from PwC indicating the potential for 600 to 800 additional sites in the low-cost segment.

At its 2023 annual results presentation in March,the Gym Group outlined its 'next chapter' plan for growth, emphasising a methodical approach to site selection focused on delivering strong returns and enhancing shareholder value.

"We look forward to working with Savills to support our 'next chapter' growth plan," said Gym Group chief executive officer Will Orr.

"We have identified the characteristics for high-performing gyms, and as we accelerate the rollout of quality sites, we are prioritising the best gym locations and delivering on our mission to give our members even greater access to our high quality, low cost fitness."

The Gym Group said it had prioritised measuring its social value generated through regular exercise, adding that it was the first fitness operator globally to have its net-zero targets endorsed by the Science Based Targets initiative (SBTi).

"We are delighted to be working with the Gym Group on their growth strategy," commented Andy Hall, joint head of out-of-town retail at Savills.

"As the only national property consultancy with retail and leisure teams based across the UK, we are excellently positioned to deliver a plethora of exciting opportunities for the Gym Group as it continues to expand its offer and reach more communities around the UK."

At 0820 BST, shares in the Gym Group were up 1.09% at 111.6p, while those in Savills were ahead 0.57% at 1,058p.

Reporting by Josh White for Sharecast.com.