Dive Brief:
- Peloton launched a selection of over 140 items — including men's and women's apparel and accessories — on Target.com’s third-party marketplace, the fitness company said in a Friday announcement.
- The availability of Peloton merchandise on Target Plus offers customers another avenue of discovery and provides “a different purchase touchpoint” for current customers, the company said.
- Peloton launched a similar deal with Nordstrom in November. The company said the collaborations are expanding the availability of its apparel, which was previously offered primarily in Peloton stores and on its website.
Dive Insight:
Peloton’s collaboration with Target comes as the fitness company works to maintain turnaround momentum by tapping into the power of third-party retail marketplace collaborations.
Peloton cited data from eMarketer that 42% of clothing and fashion shoppers use online third-party marketplaces for inspiration, 37% turn to marketplaces for search and 24% for purchases.
In October, Peloton announced a partnership with Costco to sell the Peloton Bike+ bundle in stores for $1,999 and on its website for $2,199 including delivery, from Nov. 1 through Feb. 15 or while supplies last. Peloton said the offer was its first seasonal retail collaboration in the U.S.
Additionally, because about two-thirds of current Peloton members are women, part of the company’s growth and turnaround strategy includes a push to reach more men and millennial guys in particular. In pursuit of that goal, Peloton launched a new TV, digital and social marketing campaign in November featuring football player brothers T.J. Watt and J.J. Watt.
About two months into the debut of its apparel on Nordstrom.com, Peloton said customers are responding positively. Preliminary data indicates men’s apparel is resonating with online customers.
“As we build on these initial collaborations, we will use our key learnings to fine-tune our thinking and approach to third-party retail partnerships. We are excited about the opportunity to make Peloton apparel and accessories more accessible for current and prospective members,” the company said in its announcement.
In its most recent earnings report, Peloton substantially narrowed its year-over-year net loss from nearly $160 million to $900,000. As of Jan. 1, Peloton is also under new leadership. The company chose Ford executive Peter Stern as its next CEO.
Although Stern lacks experience as CEO of a public company, he checks many of the right boxes for the company, Bank of America analyst Curtis Nagle said in a November note. They include experience with subscription services, as well as in the consumer software, hardware and fitness sectors.
The company is seeing higher free cash flow generation and extended its debt maturities to 2029. Nagle said that indicates “Peloton is in a far stronger capital position than only six months ago.”