The Canadian sportswear provider Lululemon Athletica Inc. will be collaborating with the US connected fitness specialist Peloton Interactive Inc. for its digital fitness programs in the future. On Wednesday evening, both companies announced a strategic partnership that will initially run for five years.
As part of the agreement, Peloton will become Lululemon’s “exclusive digital fitness content provider.” Users of the fitness program Lululemon Studio will have access to digital Peloton courses from November 1st, and Lululemon will stop producing its own content next spring. However, the app-based version of Lululemon’s membership program is scheduled to be discontinued at the beginning of November. Current users will be offered a switch to Peloton’s App One offer.
Lululemon stops selling Mirror products
In return, Lululemon will become Peloton’s clothing partner. From October 11th, both brands will offer their first joint sportswear collection, which will be sold via Peloton’s stationary stores and online shop. At launch, the products will be available in the USA, Canada and Great Britain, and from next March also in the remaining Peloton markets of Germany and Australia.
Lululemon also announced that it would stop selling Mirror-branded hardware products by the end of the year. The company is thus drawing a line under a costly bad investment. In the summer of 2020, Lululemon acquired the fitness system provider, which produced interactive screens and associated digital training programs, for half a billion US dollars. Despite some reform efforts, Mirror increasingly turned out to be a loss-maker. Lululemon recently sought to sell the division, but now its former core business is being discontinued. However, service and support for Mirror products will be maintained permanently, the company said.