A Peloton Interactive Inc. Logo on a stationary bike in the company’s showroom Dedham, MassachusettsU.S. on Wednesday, Feb. 3, 2021.
Adam Glanzman | Bloomberg | Getty Images
Peloton Has entered into a partnership Amazon In an effort to increase its customer base, and win back investor confidence, revenue growth slows after pandemic highs. The stock price plummets.
In This was the company’s first venture outside of its core direct business. Peloton Starting Wednesday It will be selling a selection its connected-fitness equipment accessories and equipment on Amazon’s Website in the U.S.
That It will be included in the original BikeIt retails at $1,445. It Will also be selling its strength product, known as Peloton GuideThe cost of the aforementioned is $295 Excluded Its more expensive are a result of the tie-up Bike+ Tread Machine for treadmill.
Peloton’s Pre-market trading saw stock rise by about 8%
Peloton’s Chief Commercial Officer Kevin Cornils It was estimated that there are approximately half a million searches online. Amazon Each month Peloton’s Products, even though it is not yet on the site Wednesday.
“Post-Covid, the retail environment — online and in stores — is continuing to evolve, and that’s something that we’re trying to understand better to make sure the Peloton of the future is calibrated appropriately for that,” Cornils In a telephone interview.
“We want to make it as easy as possible to get a Peloton,” He concluded.
This Mark Peloton’s To sell its merchandise, this is the first partnership between two retailers. Until The company now relies solely on its website, physical showrooms, and direct sales to consumers. But under CEO Barry McCarthy, who was elected in February, Peloton The company has pledged to increase its global distribution and to lower customer acquisition costs in order to return to profitability.
Peloton Restructuring plan for $800 million The founder of the company John Foley, was removed from the CEO position. February As costs spiraled out-of-control, losses increased. It It has been since Testing a subscription model to its equipmentAnother way to drive sales is by using this method. Peloton Also All of its in-house production was ended To streamline its supply chain.
Earlier This month The company also announced cost-cutting measuresThis includes more layoffs, store closings, about-face price increases, and exiting last-mile delivery.
Peloton’s The share price is down by about 70% in the last year. Its Market cap has dropped to $3.7 billion from $50 billion in the early 2021.
The move onto Amazon Signals McCarthy, formerly of Netflix And SpotifyMcCarthy isn’t afraid to take risks in order to get the company back on solid footing. McCarthy Added that Peloton’s Ziel It is to reach 100,000,000 members one day, a goal that Foley In 2020. Peloton Its latest quarter ended with approximately 7 million members.
In In addition to the Bike And Guide, Peloton Will sell on Amazon You can find a variety of accessories including weights and yoga blocks, weights, water bottles, and a range of accessories such as its branded shoes for cycling, weights, and heart rate armbands. Shoppers A selection of its branded apparel will be available, including shorts, tank tops (including sports bras), leggings, shorts and tank tops), hats and joggers.
“This is a really good start for us, with a digital retailer, to test the waters,” Cornils explained.
Over It’s possible. Peloton Adjust its selection on Amazon He said that the company learns from people what they are looking for. It’s Also, it is possible Peloton To expand its reach, the company will be looking to other retailers for similar deals, he said.
It Also, it could make sense. Amazon And Peloton You might also consider adding the live and on-demand workout content to your company’s perks list. Amazon Prime customers. Cornils We weren’t able to confirm this possibility.
Analysts It has been speculated that Peloton McCarthy, a content and subscription expert, is currently looking into ways to expand the distribution of its contents.
Shoppers Who buys a Peloton Bike The following are the Amazon Site will have the option to choose a self-assembly option, rather than having to schedule time with a professional to put it all together. The For those who prefer expert assembly, it will be possible.
Cornils It will be an opportunity for the company to learn from customers and see how they react to self-assembly options. This It is not something you should do. Peloton Although it has been offered before, it is another way that the company can cut costs.
Peloton’s According to the company, the support team will take care of customer service queries related to repairs, maintenance requests and general inquiries. Amazon’s Our customer service team can assist you with product purchase, delivery, installation, returns and refunds.
“Physical retail is always going to be an important part of our strategy,” Cornils. “This is more of a reflection of us trying to match the consumer.”
Peloton Before the market opens, is expected to release its fiscal fourth-quarter results. Thursday. Analysts According to the analysts, they anticipate that the company will post a per share loss of 72c on revenues of $718.19million. Refinitiv consensus.
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