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REPORT: PELOTON CLOSING 16 US & CANADIAN SHOWROOMS AT BEGINNING OF 2023

Chris L on December 3, 2022

Earlier this year as part of a restructuring and streamlining effort, Peloton’s
CEO Barry McCarthy announced that Peloton was planning to close some of the US &
Canadian retail showrooms in 2023. At the time, he said:

> Lastly, we need to rebalance our e-Commerce and retail mix to drive
> efficiencies, which means we will reduce our retail presence across North
> America. This decision will result in a significant and aggressive reduction
> of Peloton’s retail footprint. […] We will provide future updates on which
> retail operations will be impacted by this decision in the coming months. We
> do not anticipate closing retail locations in calendar 2022, but the timing is
> uncertain as we begin negotiations to exit our store leases.


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We are now hearing that Peloton plans to close 16 showrooms at the beginning of
2023 – mostly in the US with a handful in Canada as well. This would equate to
around 15-20% of the US showrooms, as there are around 90 showrooms currently
open in the US.

Showrooms that will be impacted by the upcoming closures were notified this week
about the plans. The impacted stores are expected to all be closed by the end of
January. This would keep the showrooms open through the typically busy upcoming
holiday season.

With employees finding out this week about the closures, that would translate to
around 60 days of notice of their locations closing. We’re hearing that
severance packages have been offered to those employees impacted.

This is not expected to be the only showrooms closing in 2023. More will likely
be closed in the following months – with the performance of each remaining
showroom location being continually evaluated to see if it’s worth it remaining
open to the company’s bottom line.

Closing some showrooms is just one of several changes & new initiatives Peloton
has put into place this year to attempt to return to profitability. They have
also outsourced all delivery to third parties in the US, and are looking at new
retail channels, including selling on Amazon in the US, as well as having
displays at DICK’S Sporting Goods stores.



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CHRIS L

Chris is the founder of Pelo Buddy. He purchased his Peloton in 2018, and has
been riding and running ever since. You can find him on the leaderboard at
#PeloBuddy.

TRENDING NEWS

11/14 – Peloton Black Friday Discounts offer free accessories with purchase of
Bike, Bike+, Tread or Guide
10/12 – Daniel McKenna has sued Peloton for wrongful termination
9/20 – The Peloton Row is officially open for preorders for $3,195
8/16 – Guide for Booking In-Person Studio Classes
4/14 – Peloton is increasing the monthly subscription cost, but lowering the
cost of Bike/Bike+/Tread
4/6/22 – The One Peloton Club Bike/Bike+ Rental Program is expanding
4/5 – The Peloton Guide is here and we have a first look and hands-on with the
new strength device.


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Previous Post (p) Peloton Removes Daniel McKenna's Classes from On Demand
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Next Post (n) Pelo Buddy TV Episode 109 - Daniel McKenna's lawsuit dismissed &
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Chris L 2022-12-03T10:06:17-05:00

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