Peloton (PTON) could double the size of its retail store network.
Peloton’s retail store chief is bullish on opening up more physical locations to sell consumers on what’s likely to be an expanding line of products.
Senior vice president of Peloton retail Jennifer Parker tells Yahoo Finance the company’s store base could “double” over time. Peloton’s store base — which resembles showrooms where Peloton bikes and treadmills are displayed — currently stands at more than 80. That includes recent openings in San Diego and Germany.
The company is focused on opening locations in top tier malls, Parker notes.
Parker points to several factors behind the physical store push while some in retail continue to close up shop. For one, the showrooms allow Peloton to collect a good bit of data on customers and potential ones. With that data, Peloton could identify key trends and plan new products and services accordingly.
Meanwhile, Peloton’s products aren’t cheap — the treadmill alone could go for upwards of $4,000. A store to display a pricey product that will be used at home is critical in the sales process.
And in case you were wondering, yes, Peloton’s store traffic has been lifted by the hearty response to the holiday season’s Peloton girl TV ad. Parker says more people have begun to wander into the stores and ask questions about the products and services.
Consider that a TV ad did well, despite the sometimes brutal social media responses. Maybe the company could team up with J.C. Penney next holiday season for an ad — the department store could use an influx of millennial shoppers with money.