SoulCycle aims to open standalone ‘fashion’ retail stores
SoulCycle has big fashion ambitions.
At this week’s Shoptalk conference in Las Vegas, SoulCycle executives told Modern Retail the company is building up its apparel retail arm to become 15-20% of the business. Standalone retail stores are being considered, as are expanded retail floors in existing studios. As of recently, at its studio entrances, the company is advertising the activewear brands it carries. It has also started selling beauty products, with plans to soon sell the brands it offers as amenities. Filling the white space left by Bandier for a multi-brand activewear retailer is among the company’s goals.
The retail business is being driven by Emily Carter, the company’s head of retail merchandising, who joined the company eight months ago after leading global merchandising for LVMH’s DFS Group Limited. Carter was enlisted by CEO Evelyn Webster, who took on the role in 2020. SoulCycle’s co-founders, Elizabeth Cutler and Julie Rice, stepped down in 2016, selling their shares to the company’s majority owner, Equinox Holdings.
“With Emily, we’ve entered a new chapter of our apparel business,” Webster said. “Prior, it was a merchandising business. But Emily has brought in a new level of expertise, so we can now say, ‘This is a fashion business.’ And actually, that could be a bigger part of our business.”
According to Webster, 10% of SoulCycle riders are currently converting in the brand’s retail channel. She’s confident that percentage will increase to 20-25% if the company continues to focus on brands and products that are exclusive or hard to get ahold of.
In addition to the products it develops in-house, the company sells pieces by brands including Lululemon, Alo, Splits59 and The Upside, among others. Often, pieces are co-branded — think: Lululemon leggings stamped with a SoulCycle logo. But SoulCycle also collaborates with brands to develop original product collections. Ninety percent of its products are still stamped with “SoulCycle” in some way, but that number is set to decline.
“Some people don’t want branding, so we are playing with bringing in more non-branded pieces that are a little more ‘fashion,’” Carter said.
SoulCycle has always had a retail business — it started by selling a yellow camo-print sweatshirt, and skulls were a recurring motif. The company recently reintroduced subtle skulls to its pieces, which are resonating among its young and male shoppers, Carter said.
“We think of our apparel business as a standalone fashion business unit,” Webster said. “And, with people walking around wearing the brand’s [logo and signatures], it’s an extension of our brand marketing endeavors.”
Other apparel brands that SoulCycle has recently picked up include The Mayfair Group, which is focused on mental health and wellness. “Some of the product is a bit out-there, but we have crazy sell-throughs,” Carter said.
There’s also the buzzy brand 437, which counts SoulCycle as one of its first wholesale partners — its products found at SoulCycle are not co-branded. “We wanted to attract people who aren’t yet buying our retail products by saying, ‘Look, we have something different. It’s new; it’s cutting edge; it’s something hot,’” Carter said
In the near future, SoulCycle will introduce exclusive capsule collections with artist Kerri Rosenthal and “preppy mom” apparel brand Addison Bay. “We’re looking at different parts of our community and pinpointing ways to speak to them with something unexpected,” Carter said.
The challenge lies in the fact that SoulCycle’s ridership is extraordinarily diverse. To appeal to both 20-year fans of SoulCycle and new-to-the-brand 20-somethings, in December, SoulCycle introduced the OG collection, a modern line leveraging inspiration from the brand’s archives, for example. In addition, it developed a core collection with readily available, universally beloved basics, like solid T-shirts.
Overall, Webster said SoulCycle is creating a brand discovery platform, which is set to attract people beyond those coming in to ride. Currently, less than 5% of apparel sales are to people who buy from the company but don’t take its classes.
To accommodate the vision, during the pandemic, the company explored the idea of opening a studio with a floor plan double its typical size. “SoulCycle is a third space for many, so we wanted to create more places in the studio for people to commune and also more floor space for retail,” Webster said. While SoulCycle won’t be opening larger locations this year, it does plan to expand some existing studios where retail is thriving.
“We’re seeing some staggering results in particular regions and studios,” Webster said. “Early signs are very positive.”
In addition to SoulCycle studios, the company’s apparel products are being sold on its evolving e-commerce site. It recently began featuring models on its product pages and editorials with instructors, for example. Shoppers often land on the site while searching for a brand SoulCycle carries that is sold out on its DTC site, Webster said.
According to Webster, one of SouCycle’s top retail sales channels to date was a Las Vegas-based studio that has since closed. “I can guarantee that all those shoppers were not riders; they just wanted to get their hands on SoulCycle,” Webster said. “Because it’s a cool brand.”
Opening independent retail locations catering to those who just want a piece of the brand is among “next steps” SoulCycle is targeting, Webster said.
“Look at Hard Rock Cafe,” Carter said. “They started opening merch shops [without attached restaurants].” She also referenced the success of the brand Spiritual Gangster, which was born out of a California yoga studio.
To support growth plans, Webster said the company has begun branding some merchandise likely to be worn by non-riders with “Soul,” leaving “SoulCycle” to products for more dedicated riders.
The company is also working to increasingly insert its retail products into its marketing and promotions. A reward for its rider challenges — like riding four times in a week, for example — could be a retail credit or piece of merch, Webster said.
SoulCycle riders are also set to be useful marketing tools, especially considering 80% of its riders first joined through friend referrals. “People who are in the Soul community advocate for Soul,” Carter said. “Our brand ambassadors wear our merch and bring their friends, and that’s how people discover SoulCycle.”
She added, “I’m seeing more instructors wearing our merchandise now than I’ve seen in a very long time. When our instructors engage with the content, I know we’re doing a great job.”
Moving forward, Carter aims to build out product categories beyond apparel. For example, the company just launched a room diffuser in its studios’ signature grapefruit scent.
SoulCycle, which turns 20 years old next year, experienced its heyday in the 2010s, before Peloton and other at-home fitness companies introduced big competition and accusations of a toxic work environment tarnished its reputation for championing community.