Pressing growth, WHOOP is entering brick-and-mortar retail.
What’s happening: The wearable company struck distribution deals with retailers Best Buy and DICK’S Sporting Goods, making its 4th-generation fitness strap and select accessories available in over 200 physical stores nationwide (including DSG-owned Golf Galaxy, Public Lands, and House of Sports).
Along with continued sales through its own channels, WHOOP products will also be immediately available through those retailers’ sites.
What it means: After cutting its workforce by 15% in August, CEO Will Ahmed stressed the need for a more “durable business.” In the simplest terms, that means adding new members.
For context, WHOOP’s business model is all about subscription revenue, where its hardware is free (including the latest WHOOP 4.0) with the purchase of a $30/mo. membership.
Entering brick-and-mortar retail, WHOOP hopes to lower customer acquisition costs in the increasingly competitive wrist wars. Once the pioneer of performance biometrics, well-known wearable makers Apple, Oura, and Fitbit have recently encroached on its ethos by adding recovery-focused strain and sleep features of their own.
Looking ahead: WHOOP isn’t the only DTC-first wearable brand to hit the sales floor. Oura’s recent partnerships with Gucci and Therabody’s Reset stores kicked off the smart ring maker’s omnichannel sales.
To compete with the massive distribution networks of Apple, Samsung, Google, and even Garmin, expect to see more distribution deals take shape.