US Peloton Abandons Exclusive Sales... Will Sell Products on Amazon

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Peloton, a US home training company that rapidly grew during the pandemic, is giving up exclusive sales through its own stores and will sell products through Amazon, the world's largest e-commerce company.

According to economic media CNBC on the 24th (local time), Peloton announced that it will start selling products such as treadmills and bikes on the Amazon website from that day.

Peloton is considered a representative beneficiary company of COVID-19 that rapidly grew thanks to strong sales of fitness products such as treadmills during the pandemic. Until now, it has sold products only through its own offline stores and online site.

However, as the growth slowed recently with the transition to the endemic era, it decided to expand its customer base and increase profits by partnering with Amazon to broaden sales channels. Peloton has also been pursuing cost-cutting measures such as reducing its workforce by 780 employees and closing stores earlier this year. Its stock price also plummeted more than 90% from the peak in January 2021 due to poor performance.

Kevin Cornils, Chief Commercial Officer (CCO), said, "As the retail environment moves into the post-COVID-19 era, we decided to adapt accordingly," adding, "Adding Amazon as a sales channel to increase brand exposure to consumers is a natural step for business expansion."

Meanwhile, Peloton's stock price closed up 20.36% compared to the previous session on the New York Stock Exchange on the day the news of product sales through Amazon was announced.

This content was produced with the assistance of AI translation services.