Tonal is opening stores at Nordstrom stores

Tonal brand mini-stores will launch in March at 40 Nordstrom locations in 20 states, Nordstrom (JWN)said on Monday. The 50-square-foot stores will be located in the active women’s department, where shoppers can see a demonstration of the gym or try to exercise.
The partnership is the latest example of how chains are adopting store concepts within the store in an attempt to attract new customers. In December, Sephora announced that it was opening at least 200 mini stores within Kohl’s (KSS) department stores while your rival Ulta Beauty (ULTA) was making a similar move to open small cosmetic stores within Target (TGT) stores in 2021.

Tonal’s expensive gyms can be attractive to shoppers who go to Nordstrom, a chain considered to be of a high standard among its department store peers.

“Retailers are now looking for ways to increase customer traffic. The Nordstrom-Tonal partnership makes sense because it adapts well to customers of both brands,” said Robert Passikoff, a specialist in the retail industry and founder of consultancy Brand Keys. “For Tonal, it is a very smart way to present its products to more consumers, because everyone knows Nordstrom (JWN), then he will benefit from that sense of borrowed equity. “
Nordstrom is launching tonal mini-stores in March in a handful of its department stores.

The partnership comes at a time when Nordstrom is fighting the decline in sales and adapting its strategy to changing consumer preferences.

Its sales fell 16% in the quarter ended October 31. On an investor day in February, the company said it would focus its e-commerce investments and off-price rack businesses.

Meanwhile, the pandemic has drastically boosted the adoption of household fitness among consumers.

Tonal’s gym, based in San Francisco, is mounted on the wall like a flat-screen television and uses “digital weights” where the resistance is personalized. The startup is supported by a number of investors and athletes, including Stephen Curry of the Golden State Warriors.
In September, Tonal said the business’s performance was “10 times better” compared to the previous year – a combination of the impact of the last holiday and the pandemic. “We are well over $ 100 million in terms of our sales momentum,” Tonal CEO and founder Aly Orady told CNN Business.
The rapid rise of rival Tonal Peloton to become a mandatory home fitness accessory during the pandemic came with some turmoil, causing the company to face long delays in deliveries and the ire of new customers. This could bode well for mini-stores.

“This could benefit Nordstrom and Tonal, as you now have consumers asking what else is available and where can I find it,” said Passikoff.

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