Target announced an apparel collaboration on Thursday between the Minneapolis-based company and SoulCycle. The announcement is one of likely many Target will be making with trendy designers, and it suggests that Target executives are not resting after a successful holiday season.
SoulCycle is an exercise studio known for its cycling workouts and apparel. Those who take the class can’t seem to resist buying this cycling gear. Each year, SoulCycle releases 14 to 15 apparel collections, and they provide a significant source of revenue for the company. They will start 2016 with offering their collection in Target.
The partnership with SoulCycle was announced Thursday. SoulCycle will release a small collection in Target stores of mostly unisex apparel. They will be selling a sweatshirt ($49), sweatpants ($49), tank top ($29) and a men’s t-shirt ($29). Prices for the items are less than half of the price of the items offered on the SoulCycle website. Target is presenting the collection as a limited-time offer. However, if the deal goes well for both companies, it is possible that the collection will see a long-term place on Target’s shelves.
SoulCycle and Target have also partnered up to offer people another service. They are going to join together to offer free pop-up fitness cycling classes in ten cities in the United States. These classes, which are normally $34, will be held in Houston, Seattle, Washington D.C., Atlanta, Denver, Nashville, Miami, Chicago, Minneapolis and Los Angeles. The classes will be held between Jan. 22 and Feb. 14.
Collaborating with Target, SoulCycle is showing investors that they have the potential to expand past the gym and into stores. Hopefully, the partnership will also show that SoulCycle can reap sizable sales benefits through this type of deal as well.
Through collaboration efforts with SoulCycle, Target also has a lot to prove. This partnership will speak to Target’s core, which has always aimed to offer designer brands at low prices. This business approach got ignored when Target was focusing on expanding its grocery business. However, the current CEO Brian Cornell has put focus back on the high-margin apparel business, and it has seemingly paid off for the company.
While companies like Macy’s, Nordstrom and Dick’s Sporting Goods have all blamed the warmer weather for slow apparel sales during the fourth quarter, Target has actually seen a rise in apparel sales. Since the CEO change in 2014, Cornell has been focusing on apparel sales heavily. It has definitely paid off. The company has seen a steady rise in its apparel sales quarter-to-quarter.
“We are working hard to differentiate ourselves,” Target CFO Cathy Smith said, and they are doing just that in this latest partnership.