Editor's note: Since publication, Peloton and Lululemon announced a settlement to their suits.
Peloton's new partnership with Dick’s Sporting Goods demonstrates how dedicated it is to changing its longstanding DTC model.
"This partnership is a natural fit for our brand and our member acquisition goals," Jen Parker, Peloton’s senior vice president of global direct sales, said in a statement. "Dick's is a consumer-beloved brand with a large, incremental customer base, offering tremendous upside for us to reach broader audiences and attract potential new Members. Retail remains a critical touchpoint, and we want to provide the in-store experience that many current and prospective Members still covet."
Some would agree that the partnership is a win for the struggling fitness brand.
“It is a major win for Peloton and provides the company with some much-needed good news. Dick’s strong presence and its deep customer reach give Peloton a significant platform through which to promote its wares,” GlobalData Managing Director Neil Saunders said in emailed comments. “Indeed, we believe the footfall levels at Dick’s means Peloton products will get more eyeballs on them than they would in dedicated stores.”
However, it may not be the solution to all of Peloton’s woes. Saunders noted that demand is still waning for at-home fitness equipment, which is an issue compounded by financial pressure on consumers right now.
Peloton has had a slew of changes to its company this year. This month, the brand’s head of marketing, chief commercial officer and co-founders all announced their exits. In August, the brand reported a widened net loss of $1.2 billion.
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As consumer data becomes more readily available, a host of new opportunities (and missteps) has opened up for retailers that want to tap into the potential of rich shopper data.
Photo Illustration: Arturo Holmes/Getty Images; Industry Dive
Telfar, Marc Jacobs and Tommy Hilfiger are taking a unique approach to retail. Their creative decisions may soon be the way everyone wants to do business.
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