Best Buy’s venture into selling pricey connected spin bikes and treadmills could add up to some real bucks over time.
The electronics retailer said last week it will begin rolling out dedicated fitness spaces to 100 stores by year end. These spaces (seen below, compliments of Jefferies) will sell everything from connected spin bikes by well-known Peloton rival Flywheel, to rowing machines from Hydrow, to connected treadmills by NordicTrack.
Best Buy (BBY) currently has its fitness spaces open at six locations, and the feedback has been positive among consumers, according to fresh analysis by investment bank Jefferies.
Jefferies’ boots on the ground research has found bike sales at the test locations are outpacing treadmills, and some stores are selling “a few” bikes and “a few” treadmills per week.
The only issue up to this point is that people Jefferies talked with have been surprised to see workout equipment in Best Buy stores. That is likely to change over time, however, as Best Buy ramps up marketing around the initiative.
“The pilot is limited in scale, but early results are promising,” said Jefferies analyst Jonathan Matuszewski.
The analyst estimates that Best Buy could see $130 million in sales in 2020 from its new fitness equipment. By 2021, that tally could almost double to $250 million as Best Buy probably increases store availability and consumer awareness grows.