Tonal brands will launch in 40 Nordstrom locations in 20 states in March, Nordstrom (JWN)Said Monday. The 50 square meter stores will be located in the section for active women, where shoppers can watch a demo of the gym or exercise themselves.
The partnership is the latest example of how chains incorporate brand-within-a-store concepts in an effort to attract new customers. In December, Sephora announced that it would open at least 200 mini-stores inside Kohl’s (KSS) stores, while its competitor Ulta Beauty (ULTA) was making a similar move to open mini cosmetics stores inside Target (TGT) stores in 2021.
Tonal’s expensive gyms may appeal to the shopkeepers who go to Nordstrom, a chain that is considered superior among its peers.
“Retailers are currently looking for ways to increase customer traffic. The Nordstrom-Tonal partnership makes sense because it fits well with customers of both brands,” said Robert Passikoff, a retail industry expert and founder of consulting firm Brand Keys , said. “For Tonal, it’s a very smart way to get its products to more consumers, because everyone knows Nordstrom (JWN), so it will benefit from this sense of borrowed equity. ‘
The partnership comes at a time when Nordstrom is fighting the decline in sales and adapting its strategy to changing consumer preferences.
Sales fell 16% in the quarter ended October 31. At an investor day in February, the company said it would focus its investments on e-commerce and its off-price rack business.
Meanwhile, the pandemic has sharply curtailed the acceptance of home fitness among consumers.
The home gym of Tonal, based in San Francisco, is like a flat screen television on the wall and uses ‘digital weights’ where the resistance is personalized. The startup is supported by a host of investors and athletes, including Stephen Curry of the Golden State Warriors.
In September, Tonal said the business was performing more than 10x compared to a year ago – a combination of the impact of the recent holiday season and the pandemic. “Our selling price is over $ 100 million,” Aal Orady, CEO and founder of Tonal, told CNN Business.
The rapid rise of the scene rival Peloton to become an essential home fitness accessory during the pandemic has brought turmoil, causing the company to experience major delays in the delivery and anger of new customers. This can be very good for the mini-stores.
“This could again benefit both Nordstrom and Tonal, as you are now asking consumers what is still available and where can I find it,” Passikoff said.