Peloton plans to sell its luxury exercise bike at Costco to reach holiday shoppers

NEW YORK – Peloton plans to sell its luxury exercise bike at Costco this holiday season as the struggling connected exercise company looks to broaden its customer base.

The Peloton Bike+, an exercise bike that allows riders to participate in online classes and train with a virtual community of friends, will be sold at a discount online and in 300 Costco stores from November through mid-February, the companies announced Tuesday.

The model will retail at Costco stores for $1,999 and requires self-assembly. That’s about $500 cheaper than buying a new bike directly from Peloton’s website, a purchase that includes delivery and installation. Costco will also sell the Peloton Bike+ on its website for $2,199, including delivery.

“The Costco brand is incredibly powerful and respected in the U.S. and abroad,” said Dion Camp Sanders, Peloton’s Chief Emerging Business Officer, in a press release. “Costco members know they are shopping for high-quality products from trusted brands with the best value. .”

The partnership with Costco is a way for Peloton to cast a wider net and make its products more accessible, says Angeli Gianchandani, adjunct instructor at New York University’s School of Professional Studies.

“Costco may be known for its low costs, but at the same time it does not shy away from providing high-quality products,” Gianchandani said. “And this aligns with that strategy and the way they’re doing their product selection to really appeal to a broader demographic that is affluent, and that appreciates quality and value.”

Once marketed as an exclusive, aspirational brand, Peloton began rebranding itself to be seen as more accessible as it struggled with declining sales and a plummeting stock price. In August 2022, the company put its exercise bikes and other equipment up for sale on Amazon in the US

The Peloton Bike+ is a step up from the original Peloton bike because it has a rotating touchscreen and a resistance dial that can be set to automatically adjust to an instructor’s recommendations. To join the classes, riders purchase an all-access membership for $44 per month, which also includes classes in meditation, strength training, yoga and other disciplines.

Peloton’s choice to sell at Costco “appears to be based not only on Costco’s size and formidable footprint, but also on the nature of the demographics that shop at the warehouse club,” said Kimberly Whitler, an associate professor of business administration at the University of Virginia. “Specifically, it seems like they’re trying to reach younger, wealthier individuals who are probably in the key demographic.”

Costco Chief Financial Officer Gary Millerchip said during a September earnings call that about half of the retailers’ new members this year were under the age of 40.

Sales of Peloton bikes soared during the early days of the coronavirus pandemic, when gyms closed and many people stayed home to reduce the risk of contracting or spreading the virus. The company’s stock price surpassed $150 at the end of 2020.

But growth was unsustainable and slowed as pandemic restrictions began to ease. Peloton also issued damaging recalls, including one of about 125,000 treadmills in 2021 after they were linked to the death of a child and dozens of injuries, and another of more than 2 million bicycles with a seat post that could break during use.

Faced with these challenges, Peloton’s stock price began a long decline. It traded below $7 per share throughout 2024.

In May, Peloton cut 400 jobs and CEO Barry McCarthy resigned. Peloton also sells refurbished bikes on its website, charging $1,145 for a used standard Peloton and $1,995 for a used Peloton Bike+.