Peloton picks Dick’s for its first brick-and-mortar partnership

108
2
Peloton picks Dick’s for its first brick-and-mortar partnership

Peloton Interactive has chosen Dick's Sporting Goods for its first brick-and- mortar partnership. The deal, announced Thursday, marks the company's latest bid to broaden its market share and become more profitable ahead of the holiday season.

More than 100 Dick's retail locations will sell Peloton's original Bike, Bike Tread and Guide as well as some accessories. The products will be available for purchase on Dick's e-commerce platform.

Peloton said the products were scheduled to launch early in the holiday, but they didn't provide a timeline.

The fitness company believes that a partnership with the largest U.S. sporting goods retailer will help it reach new audiences, expand its total addressable market and drive member growth.

A consumer-beloved brand with a large incremental customer base, Dick's offers tremendous upside for us to reach broader audiences and attract potential new members, Peloton Senior Vice President of Global Direct Sales Jen Parker said in a statement.

Parker noted that retail remains a critical touchpoint for many customers.

Dick's will be the only retailer to carry this selection of Peloton's connected fitness equipment. The company had previously only offered its products through its website, at global showrooms and inside sales channels before teaming up with Amazon earlier this summer.

In August, Peloton announced that some of its connected fitness products, clothing and accessories would be sold on Amazon in order to give more opportunities to expose people to Peloton. Peloton shares surged more than 400% in 2020 due to lock downs that made it popular among customers who pay a fee to participate in Peloton's interactive workouts.

The gains were wiped out last year as people shifted back to their old workout habits and returned to gyms.

The company lost its senior vice president and global head of marketing, communications and membership, Dara Treseder, to AutoDesk.

John Foley, co-founder, stepped down from his position as executive chair earlier this month. Hisao Kushi, co-founder and chief legal officer, will leave the company on October 3.

In order to reduce costs and try and revive sales, the company laid off hundreds of employees, raised the prices of its equipment and a Taiwanese company.