Once a fitness hardware darling, Peloton has been in a constant state of transition since the pandemic.
Gutted at one point by plummeting sales, Peloton pivoted away from hardware into a software-first company focused on content and subscription revenue. More recently, the fitness giant has been expanding its online presence for apparel beyond selling on its own website and stores. The big shift in Peloton’s strategy to sell on third-party marketplaces came in 2022 when the fitness brand started selling both equipment and apparel on Amazon in a bid to reach new shoppers.
Peloton’s apparel products, officially launched in 2021, are now in expansion mode. Pelotonʼs apparel lineup is now available on Target Plus, the big-box retailer’s curated digital marketplace, making it easier for existing members to shop while enticing potential new customers. This follows Peloton’s November 2024 launch on Nordstrom.com. Peloton said in a release these marketplace partnerships help increase brand visibility and reach new audiences.
At a high level, Pelotonʼs marketplace strategy is to enable shoppers to buy its clothes beyond its own website. Pelotonʼs Chief Content Officer Jennifer Cotter—who oversees Peloton studios both in London and New York, as well as its music and apparel departments—said the decision to sell on Target and Nordstrom was driven by shopper behavior that showed consumers weren’t necessarily shopping for items they liked on Peloton’s website.
“The legacy of our brand has always been [that] our members come first,” Cotter told Retail Brew. She added that if a member likes workout wear they spot during a class—whether on an instructor or fellow participant—they rarely take the extra step to purchase it on Peloton.com.
“So whether or not you remember to go home later and look it up on Pelotonʼs website, you might not,” Cotter said. “We want to make exploring our products so easy and that youʼd happen upon it, and our data shows that there’s a large crossover with brands like Nordstrom and Target.”
Peloton’s athleisure clothing subscribers’ are predominantly women, and Cotter said the company has seen that these e-commerce platforms cross over to other places they shop at.
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At a high level, Cotter said Peloton wants to be present where customers are making their broader fitness fashion purchasing decisions.
Peloton, in an emailed follow-up, noted that the launch of apparel on Nordstrom is already turning positive results: “We are encouraged by the early data showing menʼs apparel is resonating with online customers.”
Zoom out: Peloton, which reported Q2 earnings last week, narrowed its losses from ~$195 million to $92 million. Still, in a letter to shareholders, the company said, “We see significant opportunities ahead, but we have a steep hill to climb to reach sustained, profitable growth.”
Peloton has been trying to expand its customer base to reach new shoppers for the past two years, and selling on Amazon was the start of that journey.
“Weʼve gotten much better at being on Amazon,” Cotter said. “We know the way that our products show up on the website, the photography, the way we describe our products, you’re no longer in a vacuum.”
The state of the consumer in retail continues to be under pressure, as they budget cautiously when it comes to discretionary spending. That’s why Cotter insisted that it is important to show up for the consumer rather than vice versa.
“Everyone’s up against the same thing. You want to make sure that when someone looks at their share of wallet, they’re going to spend X amount on fitness or athleisure clothes that we’re in their consideration,” she said.“That’s why showing up in places like Nordstrom and Target makes sense, rather than expecting people to remember we exist and come only separately to Peloton to experience our product.”
Overall, Cotter said Peloton’s marketplace strategy is to test and learn.
“We want to get in front of new people,” she said. “We want to see what members and future members respond to and learn our way into whether or not we continue to develop a relationship.”