AFS acquisition dips toe into retail
Australian Fitness Supplies has purchased retail chain Gym and Fitness, adding national retail and e-commerce capacity to the vertically-integrated AFS fitness equipment sales model.
Gold Coast-based Australian Fitness Supplies claims to be one of Australia’s largest importers and wholesalers of fitness equipment, adding Gym and Fitness to their portfolio of brands including Force USA, Liberty Fitness Systems, Advanced Fight Gear, Vortex, Titan Fitness and Monster Fitness.
Owner Daniel Alenaddaf (pictured) says Gym and Fitness will provide better margins for AFS to continue operating its wholesale division in support of metro and regional fitness retailers.
Under the acquisition, Gym and Fitness’s team and stores in Melbourne, Adelaide and the Gold Coast will be maintained, with no material changes to short-term trading conditions.
The deal also includes Gym and Fitness’s e-commerce sales portal www.gymandfitness.com.au.
Says Alenaddaf, “The wholesale market is in decline and by entering the retail sector we can continue to operate on both fronts and still support our frontline clients.
“We will also explore an enhanced online presence for the Gym and Fitness brand and strategic expansion of new locations for stores, strictly in areas without existing fitness retail businesses.”
The Gym and Fitness acquisition was predicated, says Mr Alenaddaf, on the gap in the retail market created by the growth of online fitness sales and rapid deterioration of wholesale market conditions over the past 24 months.
“Several prominent retail chains have lost market share in the past few years to online sellers, making the timing ideal to bolster Gym and Fitness’s retail position with established AFS networks,” he says.
“The purchase of Gym and Fitness is a huge opportunity to expand into specialty fitness retail with an established brand and adds a retail ‘face’ to the integrated Australian Fitness Supplies model,” says Alenaddaf.
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