Table of Contents
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What Peloton Stores Are Closing?
What Peloton Stores Are Closing? Peloton is closing all remaining traditional (“legacy”) showrooms in the US and Canada by summer 2026, shifting to cost-effective micro-stores and third-party retail partnerships; as of October 2025, only 5 traditional US showrooms remain open in California and Texas, with 2 in Canada.
Reasons Behind Peloton Store Closures
Peloton’s aggressive retail downsizing stems from post-pandemic demand shifts and financial pressures. Once valued at $50 billion during COVID lockdowns, the company’s stock plunged 88% by mid-2022 as gym reopenings reduced at-home fitness sales. By fiscal Q4 2024, Peloton reported a $1 million net loss—down from $159 million the prior year—thanks to restructuring that cut global headcount by 15% (400 jobs) and targeted $200 million in annual savings by end-2025.
Key drivers include:
- Overestimated Demand: Hardware sales dropped 2% year-over-year in Q1 FY2025, forcing a pivot from fixed-cost showrooms to variable third-party distribution.
- Cost Structure Overhaul: Showroom leases and staffing consumed 10-15% of operating expenses; closures aim for positive free cash flow in FY2025.
- Economic Uncertainty: CEO Barry McCarthy noted in 2022, “Cash is oxygen. Oxygen is life,” amid macroeconomic headwinds.
This strategy aligns with broader fitness trends, where connected equipment market growth slowed to 5% annually by 2025, per Statista reports.
Timeline of Peloton Store Closures
Peloton’s closures accelerated from 2022, halving its footprint by 2025. Initially, 97 North American showrooms operated in 2022; aggressive cuts began post-August announcements.
| Year | Key Closures | Total US Showrooms Remaining | Notes |
|---|---|---|---|
| 2022 | Undisclosed number (significant reduction announced) | ~70 | Tied to 800 layoffs and warehouse exits. |
| 2023 | 16 US/Canada (e.g., CT’s Westfarms and Westport). | ~50 | Focused on lease negotiations. |
| 2024 | Multiple waves, including Bay Area’s Walnut Creek. | ~24 | Part of 2024 Restructuring Plan. |
| 2025 (Jan-Mar) | 7 US (late 2024 spillover) + 4 more (e.g., Manhattan West, NY). | 17 (Mar), then 11 (Jun) | Micro-store pilots launch. |
| 2025 (Jun-Sep) | 5 US (e.g., Los Angeles Century City, Alpharetta GA) + 6 US/Canada (4 US, 2 Canada). | 5 US (CA/TX), 2 Canada | Targets all legacy closures by summer 2026. |
Over 80% of original locations shuttered, saving $150+ million in run-rate costs by Q3 2025.
Specific Peloton Stores Closing in 2025
Recent waves hit high-traffic malls, prioritizing underperformers. Bolded locations closed in 2025:
- January Wave (7 US): Scottsdale Fashion Square (AZ), Garden State Plaza (NJ), Cherry Hill Mall (NJ), and others (exact list partial; focused on low-engagement sites).
- March Wave (4 US): Manhattan West (NY), Oak Brook Center (IL), and two Midwest spots—leaving 17 nationwide.
- June Wave (5 US): Los Angeles – Westfield Century City (CA), Alpharetta (Atlanta) – Avalon (GA), Skokie – Westfield Old Orchard (IL), Paramus – Westfield Garden State Plaza (NJ), Cherry Hill Mall (NJ). These hosted events like instructor meet-and-greets.
- September Wave (6 total; 4 US, 2 Canada): US: Houston Galleria (TX), three Texas/California holdouts; Canada: Vancouver, one additional. Leaves 5 US (1 CA, 4 TX) and 2 Canada (Calgary, Toronto).
For full historical lists, check Peloton’s investor relations page.
Peloton’s New Retail Strategy: Micro-Stores and Partnerships
Exiting legacy showrooms, Peloton invests in leaner formats. Micro-stores—kiosk-style setups at 10% traditional size—debuted in Nashville’s Mall at Green Hills (late 2024), outperforming averages in revenue per square foot. Plans: 10 openings by holiday 2025, including Utah and prior closure sites.
Third-party boosts include:
- Apparel on Amazon, Nordstrom.com (Nov 2024), and Target Plus (Feb 2025)—driving 20% subscriber growth via non-members.
- Hardware at Dick’s Sporting Goods and Hyatt hotels (800 locations).
- International: 3PL-only in new markets for 15% cost savings.
Q1 FY2025 sales rose 1% to $595 million, with subscriptions up 3% to 3 million users. “We’re testing where members shop,” says Chief Content Officer Jennifer Cotter.
Impact on Customers and Employees
Customers: Test rides now via pop-ups or partners; 70% report no disruption, but urban users decry access loss. Refurbished sales surged 25% Y/Y.
Employees: 400+ layoffs in 2024-2025; total cuts hit 2,800 since 2022. Affected roles: showroom staff (commission-based). Peloton offers severance and outplacement.
Broader: Closures reflect fitness industry’s 10% retail contraction in 2025, per McKinsey analysis.
FAQ
Q: Are all Peloton stores closing?
A: Yes, all traditional showrooms by summer 2026; micro-stores and partners replace them.
Q: How many Peloton stores are left in 2025?
A: 5 in US (California, Texas), 2 in Canada; PSNY flagship exempt.
Q: Can I still test a Peloton bike?
A: Yes, via micro-stores, Dick’s Sporting Goods, or virtual demos on onepeloton.com.
Q: Why is Peloton closing stores now?
A: To cut $200M costs and achieve positive cash flow amid slowing hardware sales.
Q: Will closures affect subscriptions?
A: No—3M+ subscribers grew 3% in Q1 2025; focus shifts to app/content.
Final Thoughts
Peloton’s store closures mark a bold pivot from experiential retail to efficient, digital-first access, positioning it for sustainable growth in a $30B connected fitness market. With new CEO Peter Stern starting January 2025, expect accelerated micro-store rollouts and international pushes—potentially boosting stock 22% as seen post-Q1 results. For members, it’s less about locations, more about seamless home workouts. Track updates via Peloton’s newsroom.
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