Peloton is leaning on America’s largest sporting goods retailer to boost sales.
Dick’s Sporting Goods stores will stock the struggling exercise equipment company’s hardware products—including the original Bike, Bike+, Tread and Guide— and select accessories via branded fitness shops inside more than 100 of its 700 retail locations, as well as on its online store.
The rollout of Peloton’s first brick-and-mortar retail operation outside of its namesake stores doesn’t have an exact launch date, but it’s expected “early in the holiday season,” according to a press release.
At-home internet-connected gym equipment and classes sprinted to highs during the pandemic. But as things opened up, gyms made a comeback and Peloton started losing ground.
Its stock began tanking soon after covid-related lockdowns were lifted, and it hasn’t looked up since. Its most recent earnings, released on Aug. 25, showed losses of $1.2 billion.
Person of interest: Barry McCarthy
A Netflix and Spotify veteran, Barry McCarthy took over as CEO from Peloton co-founder John Foley in February this year—smack in the middle of massive layoffs and other cost-cutting efforts.
Initially taken aback by how deep supply chain issues ran at the firm, he’s been trying to revive the ailing business and increase cash flow by growing subscription revenue.
In the shareholder’s letter accompanying the company’s fourth quarter results in August, McCarthy compared the company to a cargo ship that found itself in rough waters.
He wrote: “We’ve sounded the alarm for general quarters. Everyone’s at their station. We continue to add new inputs to evolve our go to market strategy to restore growth. When will the ship respond is the question. Our goal is FY23.”
A brief history of Peloton’s revamping efforts under McCarthy
March 10: Peloton pilots One Peloton Club—a subscription service for its workout equipment and on-demand classes
July 12: Peloton brings its own manufacturing to a halt and outsources to Taiwan-based Rexon Industrial Corp to cut costs
Aug. 12: Peloton cuts 800 jobs, raises prices for Bike+ and Tread machines, and outsources functions like delivery and customer services
Aug. 15: McCarthy says Peloton is redesigning bikes to allow self assembly
Aug. 24: In a shift away from its direct-to-consumer-only strategy, Peloton starts selling select equipment and apparel on Amazon
Sept. 12: Peloton announces sweeping leadership changes, including the departure of co-founder, executive chairman and former CEO Foley as well as co-founder and chief legal officer Hisao Kushi
Sept. 13: Peloton expands its rental program (formerly One Peloton Club) across the US. Customers can rent the original Bike and membership for $89 a month and an addition $150 setup cost. To buy, the original model costs $1,445
Sept. 26: Peloton’s chief marketing officer Dara Treseder prepares to leave the company, effective Oct. 4.
The company recently announced the release of a smart rower, which is available for pre-order at $3,195. (It won’t be in Dick’s stores.) The fitness classes cost an additional $528 a year. That’s roughly the price of a 7-day cruise.
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