Gyms were hit particularly hard by the pandemic, but are beginning to see tentative traffic as business opens back up. Targeting these cautious gym-goers, Peloton creates new, more affordable products aimed at those still wanting to work out from home. After Peloton’s Tuesday announcement, NBC News reported consumer doubts that the company’s marketing tactic would stick. Meanwhile, Peloton’s shares spiked 9%.


In this Business Casual snippet, hosts Daniel Litwin and Tyler Kern consider Peloton’s investment in gym-shy budget consumers. Peloton’s move signals the company’s bet that the gym experience may never fully recover. If their bet pays off, the fitness apparatus company could reap big profits. If they’re wrong, and consumers return to the gym in search of community and motivation, Peloton will have missed the mark.

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