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UPDATE 1-Peloton to sell exercise bikes on Amazon UK to improve demand

Reuters · 11/16/2022 07:22
UPDATE 1-Peloton to sell exercise bikes on Amazon UK to improve demand

Adds details on sales strategy, background, shares

- Peloton Interactive Inc PTON.O will start selling its exercise bike and other fitness accessories on e-commerce giant Amazon.com Inc's UK platform, it said on Wednesday, in an effort to combat slowing demand.

The move by the company, which has embarked on a cost-cut plan to achieve profitability, follows a similar sales push on Amazon AMZN.O in the United States in August.

The company's exit from selling exclusively through its own e-commerce site and global showrooms is one of Chief Executive Barry McCarthy's latest strategies to add more customers, cut losses and improve cash flow.

Peloton said in mainland UK, its bikes will be available for in-home delivery and first-time customers will have the option to assemble it themselves or select an expert assembly option.

The company generated about 8% of its total revenue from international sales in the first quarter ended Sept. 30. It does break down revenue based on regions.

Peloton will also launch in Amazon's German store in the coming weeks, the company said.

Shares of the New York-based company were up 1.7% at $12 in premarket trading.

(Reporting by Kannaki Deka in Bengaluru; Editing by Arun Koyyur)