From CNBC: 2024-10-22 12:33:23

Peloton is partnering with Costco to sell its Bike+ for a discounted price of $1,999 in 300 U.S. stores and on Costco.com from Nov. 1 to Feb. 15. This move comes as Peloton shifts focus to profitability and seeks new ways to attract customers. The deal targets Costco’s affluent, health-conscious demographic, aligning with Peloton’s offerings and leveraging Costco’s large consumer base.

Costco’s customers are getting younger, with a growing emphasis on health and wellness. 36% have household incomes over $125,000. Peloton sees an opportunity to reach this affluent demographic that values premium products like its stationary bikes. The limited-time partnership aims to appeal to Costco’s members’ lifestyles and needs, potentially expanding to more locations in the future.

Costco’s membership base increasingly includes younger, affluent consumers prioritizing wellness and willing to invest in it. Peloton aims to leverage this partnership to access Costco’s wide consumer audience, with plans for potential future expansions and developments based on the initial success of the collaboration. The deal aligns Peloton’s premium products with Costco’s value-focused, health-conscious customer base.

Peloton’s Costco partnership is part of a broader strategy to expand its reach through collaborations with companies catering to similar customer bases. These partnerships, including deals with Amazon and Dick’s Sporting Goods, allow Peloton to tap into new markets and demographics, creating opportunities for growth and increased brand exposure. The collaboration with Costco addresses the evolving preferences of consumers seeking health and wellness solutions amid changing market dynamics.



Read more at CNBC: Peloton, Costco partner to sell Bike+ for 2024 holiday