FITNESS

Cue the Jon Snow Impression

Boutique fitness brands built entire cults communities with hypnotic in-person classes, whether spin, boxing, or disco goat yoga. Seven months into a pandemic, they’re trying to recreate their sweaty magic outdoors—but the leaves are turning. 

The tap back story: Crowded fitness classes, just like beauty testing counters and dive bars, were shut down due to health concerns. So spin junkies turned to connected fitness apps and DTC equipment brands for their endorphin kick. A sample of the sales surge: 

• Stationary bike sales nearly tripled YoY in August, per NPD Group data.
• Dumbbells sold out months ago and still haven’t returned.

Connected fitness equipment brands like Peloton sell a bike and an experience, but brands that are best known for the latter still believe in group sweat. So as states reopened, they introduced limited capacity, entirely outdoor classes. 

A sample: Barry’s is holding strength training classes under the sun in CA. 305 Fitness has taken its dance parties outdoors in select cities. Equinox+ opened its first entirely outdoor gym in NYC last week; SoulCycle has moved spin classes to parking lot tents outside some studios. 

Results? “Client feedback on outdoor classes has been extremely positive,” said 305 Fitness COO Sam Karshenboym. “We started with 10 classes per week in July and have steadily grown to over 50 outdoor classes per week across NY, DC, and Boston with most classes waitlisted.” 

• The brand expects studios to remain closed until spring 2021, but says studios and instructor certification will remain its core business model.

Out in the cold

All the BFCM sales I’ve written about lately are a sign that winter is coming, and it’s an existential threat to the open air model. Though Nadia Biski, Equinox’s SVP of architecture and design, said winter precipitation was no match for the outdoor gym: “Weather is not holding us back,” she told AD Pro.  

Not so fast. Analysts I spoke with suggested outdoor classes are nothing more than an Instagrammable Band-Aid. To survive, boutique fitness brands need to develop alternative revenue streams. Preferably ones that shorten the commute from bed to bike.  

“Mobile apps, digital equipment, or apparel could provide fitness experience brands a lifeline, but their ability to produce and distribute high quality live and on demand fitness programming will be what pulls them ashore,” said Kyle Rees, Director and Sector Lead at Gartner. 

• Many of the brands hosting outdoor classes are testing new digital products. Barry’s is sending at-home “fit kits” to members; 305 Fitness launched an At Home program with daily virtual classes.

Still...a shakeout is imminent. “Those that haven’t already pivoted are way behind the game and may not catch up,” Caitlin O’Keefe, Partner in the Strategic Operations practice at Kearney, told Retail Brew.  

My takeaway: We once thought the future of fitness was niche, in-person experiences. But that was before most consumers got acquainted with the convenience of at-home equipment and tech.

SPONSORED BY ORACLE NETSUITE

Finding Weak Links in Your Supply Chain?

Many businesses have realized that a lack of visibility from offshore suppliers and manufacturers can be severely detrimental. 

As a result, there has been a call for more supply chain resilience and traceability. For many, that has meant a shift to a local supply chain. But this can be difficult, especially when multiple suppliers or third parties are involved.

So Oracle NetSuite put together a white paper to understand the importance of supply chain resilience. You’ll also learn:

• The benefits of local sourcing and production.
• Major costs associated with moving parts of your supply chain.
• Potential barriers to relocation.
• The steps to take if you decide to onshore.

If you look at your supply chain and only see smoke and mirrors, it’s time to get a good look at the full picture. Get Oracle NetSuite’s white paper here.

SWAPPING SKUS, SUPERSIZED

Yes, I had all of these tabs open at the same time. Yes, my MacBook was sweating. Yes, it was worth it.

1. How can we tell that Pepsi was late to the branding/blanding debate? Look at the labels on its latest products. (Marker)
2. Never mind that scent samples are digital impossibilities. Fragrance brands are joining the e-comm movement. (Vogue Business)
3. Brandice Daniel founded Harlem’s Fashion Row in 2007. Thirteen years later, the fashion industry’s finally taking notice. (Harper’s Bazaar)
4. If I knew any Grateful Dead references, I’d use one to plug this excellent piece on the band’s infiltration of the sneaker market. (WSJ)
5. Inside the NYC food scene’s most anticipated restaurant reopening: Olive Garden Times Square. (Grubstreet)
6. Sit. Stay. Rebrand. Good, Petco. (Fortune)
7. Looking back on fashion week’s excesses, through the eyes of a former sweatshop worker. (Zora)
8. 2017 gave us the fidget spinner. 2020 hit back with fidget fine jewelry. (Fashionista)
9. The market for used couches is...not what I expected it to be. (The Goods)
10. Big box retailers reported triple-digit e-comm growth after implementing curbside pickup. Holdouts are finding their curbside enthusiasm as a result. (NYT)

COMMUNITY

Welcome to Coworking, a segment highlighting the best part of Retail Brew: you, the readers. Want to see your name here? Fill out our quick nomination form, or share it with a friend who reads Retail Brew. 

Meet Reese Sun, Global Strategy Associate at The North Face and our spotlight du jour. 

How would you describe your job on a date? Setting direction, framing stories, and herding cats.

One thing we can’t guess about your job from your LinkedIn: You in fact do not have to be a good skier or snowboarder to work at TNF. 

Favorite project you’ve worked on: Not one project, but participating in TNF's racial equity and justice initiatives.

A brand you’re obsessed with (that isn’t your employer): Cold Picnic

NOW TRENDING

With the help of Exploding Topics, I’ve listed the monthly search growth of three quarantine favorites and an additional clue about each. Your job is to guess the product or company.

1. 1,875% growth; a place to split receipts 
2. 225% growth; if Emily in Paris were a clothing brand
3. 7,300% growth; wearable gear for heavy reps

Keep scrolling for the answers.

ICYMI

Fall behind on your Retail Brews? Start catching up here.

• Meet Popshelf, Dollar General’s New Store Concept 
• How Americans Are Actually Shopping This Holiday Season
• Sneaker Resale Is Going International

NOW TRENDING ANSWER

1. Afterpay
2. Sezane
3. “Squat proof leggings”