Hugo Boss, a Germany-based clothing company, appears to be taking the space now leased by Peloton at St. Johns Town Center.
Peloton has been restructuring and closing its interactive fitness and equipment stores.
Neither company immediately returned emails for comment May 17.
The city is reviewing a permit for build-out of Hugo Boss at 4813 River City Drive, No. 107, at an estimated $150,000. Those costs can change as the permit is reviewed.
The 3,313-square-foot space started as Tommy Bahama, which moved across the street to a larger store connected to its Marlin Bar.
The city approved a permit May 4, 2020, for Peloton to build-out the 3,228-square-foot space at a cost of $800,000.
As of May 19, the St. Johns Town Center directory at Simon.com shows Peloton in the space, which is between Coach and Psycho Bunny.
The directory does not include Hugo Boss.
The directory shows six tenants as coming soon, comprising Aritizia, Chanel Fragrance and Beauty, Evereve, Great American Cookies and Marble Slab Creamery sharing a space, Komma Tea and Shake Shack.
Hugo Boss
Hugo Boss says it is one of the leading companies “positioned in the premium segment of the global apparel market.”
“With its two brands, BOSS and HUGO, the group offers collections in 131 countries at around 7,800 points of sale and online in 73 countries via hugoboss.com,” says the site.
Plans show that the St. Johns Town Center store would be a BOSS menswear shop.
Hugo Boss also sells women’s and children’s clothing.
The company, based in Metzingen, has about 19,000 employees worldwide.
HugoBoss.com shows the closest locations to Jacksonville are in Orlando.
The Statista.com data site shows that there are 1,418 Hugo Boss stores worldwide, Rentechdigital.com says there are 135 stores in the U.S., among 95 cities in 26 states and territories. It shows 21 in Florida, second to the 28 in California and ahead of 17 in New York.
Group.hugoboss.com says its global network of locations is controlled from three headquarters. The Metzingen headquarters, near Stuttgart, is responsible for the European region and for the entire group. The regional headquarters in New York is responsible for the region of North, Central, and South America. Hong Kong manages the Asia-Pacific region.
Peloton
The St. Johns Town Center store is Peloton’s only showroom in Florida and one of 34 in 17 states, according to onepeloton.com.
Upon opening in 2020, the St. Johns Town Center Peloton was the seventh in Florida and one of at least 75 in the U.S.
Peloton said at the time it operated 81 showrooms in the U.S., Canada, United Kingdom and Germany.
Peloton has been closing locations.
The New York City-based fitness company was expanding as the coronavirus pandemic shut down the economy and people were housebound starting in March 2020.
Peloton stocks treadmills, bikes and offers a trial test lounge. The company sells equipment, memberships and virtual and on-demand classes.
According to onepeloton.com, the company was founded in 2012 to create a new concept in fitness – developing an indoor cycling studio experience for customers to use at home.
Company restructuring
Peloton Interactive Inc. announced May 2 it planned comprehensive restructuring efforts to align the company’s cost structure with the current size of its business.
“This restructuring will position Peloton for sustained, positive free cash flow, while enabling the company to continue to invest in software, hardware and content innovation, improvements to its member support experience, and optimizations to marketing efforts to scale the business,” the release said.
“Upon full implementation, the company expects the plan to result in reduced annual run-rate expenses by more than $200 million by the end of its 2025 fiscal year.”
Peloton said it expected to reduce global headcount by about 15%, which impacts about 400 Peloton employees; continue reducing its retail showroom footprint; and “reimagine the company’s international go-to-market approach to be more targeted and efficient, leveraging global strategies and capabilities – with localized execution – to allow the business to optimize and consolidate resources.”
Also May 2, Peloton said President and CEO Barry McCarthy was stepping down from those positions as well as from the board and would become a strategic adviser to the company through the end of the year.
It said the board started a search for the next CEO. Board Chair Karen Boone and director Chris Bruzzo would serve as Interim co-CEOs. Director Jay Hoag was named the new board chair.
Job cuts
Peloton announced in August 2022 it would lay off about 780 employees in an overhaul that would mostly affect the company’s delivery workforce.
SportsBusinessJournal.com reported at the time that McCarthy circulated a memo that the company was shutting down a substantial amount of its 86 retail stores beginning in 2023 and raising the prices on its at-home fitness products to ensure better profitability.
CoStar.com reported May 2 that the company had already closed roughly half its stores and said it will “continue reducing its retail showroom footprint.”
CoStar reported that about two years ago, Peloton had an estimated 70 to 80 U.S. showrooms, many of them in malls. It sold a large factory it has under construction in Ohio.
For the fiscal third quarter in 2024, Peloton reported a loss of $167.3 million, compared with a $275.9 million loss in the third quarter of 2023.
Revenue in the quarter fell to $717.7 million from $748.9 million a year earlier.
CoStar reported that in a securities filing in February, Peloton said in its 2-year-old restructuring plan it had “committed to the closures of certain warehouse and retail locations, the discontinuation of manufacturing in North America, and the wind-down of certain software implementation and development projects”