Investing.com Peloton (NASDAQ:PTON) is set to begin selling its stationary bikes at Costco (NASDAQ:COST), both in stores and online, as the fitness company seeks new ways to attract younger, affluent consumers, the companies announced on Tuesday.
Under the agreement, Costco will feature Peloton’s Bike+ in 300 U.S. stores at a price of $1,999 and online at $2,199, between November 1 and February 15. This represents a significant discount from the usual $2,495 price on Peloton’s website.
It remains unclear how these prices will stack up against any holiday promotions Peloton might introduce.
Peloton shares rose more than 1.5% after the market open on Tuesday.
The collaboration comes at a time of transition for Peloton, now overseen by two board members following former CEO Barry McCarthy’s departure earlier this year. Historically focused on rapid expansion, the maker of fitness equipment is now shifting its attention to profitability and is exploring more innovative ways to reach potential customers.
With sales declining and losses increasing, Peloton is exploring cost-effective strategies to bring in new buyers.
“The Costco brand is incredibly powerful and respected in the US and abroad. Costco members know they are shopping for high quality products from trusted brands with the best value,” said Dion Camp Sanders, Chief Emerging Business Officer of Peloton.
In a separate statement for CNBC, Sanders noted that the Costco deal is temporary due to the seasonality of fitness equipment sales but expressed hope that the relationship could grow, potentially expanding to more locations both in the U.S. and internationally.
Peloton already sells its products through Amazon (NASDAQ:AMZN) and Dick’s Sporting Goods Inc (NYSE:DKS) and continues to explore partnerships with companies that share a similar customer demographic.