Peloton is continuing to lean into a new retail strategy that is apparently already showing promise: compact micro store showrooms (or mall kiosks).
After testing the concept with a small-format location in Nashville, Peloton plans to expand the model to additional cities later this year – signaling a pivot from its traditional showroom approach.
On the company’s latest earnings call earlier last month, CEO Peter Stern praised the performance of the Nashville test store in his opening remarks. He stated:
“Our micro-store test in Nashville has been encouraging, as store revenue has outpaced the average of our other North America retail showrooms despite having one-tenth the square footage. We plan to bring on additional locations soon.”
The Nashville micro-store opened in late 2024 at The Mall at Green Hills. While small in size, the location is designed to maximize customer engagement, featuring floor models of Peloton hardware, space for consultations, and quick onboarding for prospective members. The mall-kiosk style space is designed to engage customers efficiently without the overhead costs of a full-sized store. The early success of this store suggests Peloton may have found a cost-effective way to maintain a physical retail presence while keeping overhead low.
Stern mentioned again in his closing remarks that this new model has already proved to be profitable. He explained:
“Our micro-store is driving more revenue than our average showroom at a fraction of the size, cost and lease commitment.
In a separate statement to CoStar, Peloton further clarified that they will open additional micro-store locations in Q1 of their fiscal year 2026, which would fall between July and September of 2025. However, specific locations and timing for the new locations have not yet been announced.
This new strategic approach comes as Peloton continues to scale back its traditional brick-and-mortar footprint. Earlier this year, the company closed several full-sized showrooms, leaving just 15 open across the United States as of March 2025. While Peloton has not shared how many of those legacy showrooms it intends to keep long-term, the shift toward micro stores suggests a new direction focused on efficiency and profitability.
With more locations expected in Q1 FY2026, Peloton appears committed to rethinking retail, betting that smaller showrooms can still deliver significant results. This comes as Peloton has also experimented with more partnerships with existing brick & morter stores, such as their seasonal partnership with Costco in the US and with MediaMarktSaturn in Germany.
Catch up on any of the details you may have missed from Peloton’s latest earnings call via our overview article.
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