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Costco to Sell Peloton Bike+ at 300 U.S. Outlets This Holiday Season

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Costco Wholesale Corporation (COST - Free Report) is gearing up to attract fitness enthusiasts by offering the Peloton Bike+ at its 300 U.S. outlets and online this holiday season. This collaboration between the wholesale retail giant and Peloton Interactive, Inc. (PTON - Free Report) brings a unique opportunity for shoppers to purchase high-end fitness equipment at competitive prices. With growing consumer demand for home workout options and Peloton’s brand recognition, this move should spark a win-win scenario for both companies.

Bike+ at Costco Available for a Limited Time at Special Prices

For Costco’s shoppers, the Peloton Bike+ will be available for a limited period from Nov. 1, 2024, to Feb. 15, 2025, or till inventory lasts. The bike is expected to be priced at $1,999 in-store and $2,199 online (including delivery), along with a 48-month extended warranty. By comparison, the same model is priced at $2,495 on the Peloton website.

The Peloton Bike+ features a rotating screen and a resistance knob that allows for manual control, along with an auto-resistance option that automatically adjusts resistance to match the instructor’s cues. 

The All-Access Membership, priced at $44 per month, allows users to set up multiple accounts for everyone in the household and offers unlimited access to Peloton’s extensive content library, spanning 16 different workout categories.

Connecting With Costco’s 136 Million Members

For Peloton, this partnership marks its first seasonal retail collaboration in the United States, providing Costco’s 136 million loyal members with exceptional value on quality, brand-name merchandise. Known for its dedicated customer base and commitment to high-quality products at competitive prices, Costco offers Peloton a valuable opportunity to showcase its premium connected fitness products to a new and affluent audience.

Costco's key strengths lie in its strategic investments, customer-centric approach and emphasis on membership growth. This partnership will connect more fitness-focused members with PTON. The company expressed enthusiasm about the opportunity to gain insights from this initial seasonal partnership and is hopeful that this will lead to broader distribution of its products in new geographic markets through Costco in the future.

More on Costco Stock

Costco's success stems from its membership-based business model, which generates a dependable revenue stream while fostering strong customer loyalty. Members pay an annual fee for access to Costco's warehouses, where they can shop for a wide range of goods at significant discounts. This model not only guarantees a consistent flow of revenues but also cultivates a sense of exclusivity and value among its members.

COST continuously adapts to market trends and consumer preferences. The company regularly updates its product offerings to include a mix of everyday essentials and high-demand items. Through market analysis and tailored offerings, Costco has expanded its presence domestically and internationally. 

Costco's promising future is supported by its favorable product mix, consistent store traffic, pricing power and strong liquidity position. By emphasizing a strategy that prioritizes discounted prices, Costco has successfully attracted customers seeking value and convenience. 

In the past six months, COST stock has gained 23.5%, outperforming the industry and the S&P 500 index’s growth of 12.4% and 15.2%, respectively. Costco currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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