Peloton closes retail stores, will stream classes from closed set

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Peloton bike

Source: Peloton

Peloton Interactive said it closed its New York and London studios to the public but will continue to produce live content from a closed set as it responds to the widening coronavirus pandemic.

The company, which went public last fall, was scheduled to open a brand new flagship studio on Manhattan’s West Side Thursday, but will postpone that and close the current New York studio Sunday. 

Starting Thursday, Peloton will produce and stream content from its new location, but it will be entirely closed to the public “until further notice.” It will operate as a closed set with a modified schedule, from which a select team will produce and broadcast programming for at-home members.

Peloton CEO John Foley wrote the following: “At Peloton, we care deeply about community, and the COVID-19 pandemic has impacted not only our own team and Members but also the global community at large. I want to thank our extraordinary Peloton family — across Retail, Field Operations, Member Support, Content and more — who work tirelessly each day to enrich our Members’ lives.” 

The company made the announcement as the global response to the coronavirus pandemic became more serious. Nations and states have shut down bars and restaurants. The Federal Reserve slashed interest rates to zero. More than 156,000 have been infected worldwide, with at least 2,952 in the United States. At least 5,833 people have died, according to Sunday’s latest tally from Johns Hopkins University.

Peloton will also close its more than 96 retail showrooms in the U.S. and abroad until March 29, according to Foley. Its online retail business will operate as usual. 

“As of now, our Field Operations teams will continue to deliver Peloton Bikes and Treads to people’s homes, while taking extra precautions to address the safety of both our Members and our team,” Foley wrote. 

Shares of Peloton are down about 5% since the start of March. It was listed by some analysts as a “stay-at-home stock,” which could benefit as consumers move away from public gyms and fitness classes and choose to exercise at home. Peloton sells fully interactive stationary bicycles and treadmills as well as streaming fitness content. 

The company has over two million members, according to its second quarter earnings release. Total revenue grew 77% to $466.3 million. Connected fitness subscribers worked out over 24.3 million times in the second quarter. 

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