The latest distribution and sales news from the struggling manufacturer of the famous Peloton machines didn’t impress the market.
What has happened?
Investors usually react positively when a company announces it has opened new distribution and/or sales channels for its products. For Peloton (PTON -0.46%), however, this was not the case on Wednesday. The shares of the once-popular manufacturer of exercise equipment fell nearly 8% after the company announced that it would be expanding its distribution agreement.
What then?
Peloton announced that it was expanding its partnership with the mighty retailer Amazon. (AMZN, -2.34%). Peloton’s exercise gear is now available to purchase from Amazon’s U.K. online store. It will also start appearing on listings for Amazon’s Germany website “in the coming weeks”, Peloton stated.
The exercise bikes shipped by the company are not assembled. Customers in the U.K. will be able to get “expert” assembly on-site for free, just like the U.S. Amazon website. Peloton did not mention whether German customers will have the same option.
Peloton started selling its apparel and equipment through Amazon in August.
Peloton’s International Manager Manu Seigner stated in a press release about the agreement of expanding into Europe: “Further expansion of our distribution channels through Amazon is the latest move to make Peloton easily accessible and meet our members wherever they are.”
What now?
This news appears to be unambiguously positive on the surface. Peloton is moving from being a direct-to consumer manufacturer to becoming one that is eager to distribute via major channels such as Amazon. This should allow it to move more exercise machines.
This may be a reminder to investors that the company is still in serious financial trouble. As the world struggles to overcome the coronavirus pandemic, its sales and engagement numbers have fallen significantly. In-home exercise, which was a popular trend during the pandemic, now seems more like a temporary trend than a long-term change.
Read also:
- 11 Best Peloton Heart Rate Monitors (undated regularly)
- 7 Best Peloton shoes of the year (Updated Regularly)
- 11 Best Peloton Bike Accessories
- 9 Best Peloton Tread Alternatives in 2022
- 6 Best Peloton Bike Alternatives in 2022
- All You Need to Know About Peloton Clothes
- Should You Buy a Used Peloton Bike? How to buy it?
- How to Find the Best Peloton Instructors for Your Style
- Peloton partners with Foxtel TV in Australia
Leave a Reply