Lifetime Fitness 2005 Annual Report Download - page 8
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GROWING NATIONALLY
New centers are a key component of our ongoing
growth. We exceeded our new-unit growth goals in
2005 and are on track to meet our goals in 2006. We
believe that more than 200 additional U.S. centers are
possible — enabling many more opportunities to grow
and continue building a strong national presence.
Disciplined business model provides
competitive growth advantages
Over the past 14 years, we’ve developed in-house
expertise in building and managing our centers. We
leveraged that knowledge to create a disciplined process
that allows Life Time Fitness to continue expanding
efficiently and cost effectively.
We developed a proven site selection system that
analyzes physical, demographic, psychographic and
competitive criteria to determine if a prospective
location can meet our operational and financial goals.
Then, unlike most retailers that lease facilities, we
build and own the majority of our centers for greater
operational and financial control.
Our wholly owned construction subsidiary provides
maximum flexibility over the design process of
our centers, and control over the cost and timing
of construction. Our marketing activity is just as
efficient, because it’s based on a systematic series of
communications designed to optimize lead generation
and memberships.
Through our centralized service groups — including
Member Relations, Information Technology, Marketing,
Procurement, Human Resources and Accounting —
we reduce overhead, improve quality and control costs.
Because member satisfaction is critical to our continuing
success, we have a rigorous team member training and
certification process. In addition, our executive
management team maintains direct contact with
members and staff through our “Let’s Go Clubbing”
program. Executives visit assigned centers to gather
team member feedback, rotate jobs and interact with
members — to ensure our strategic decisions continue
to be based on the best interests of our members.
Cost effectively add new centers in strategic markets
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