Inflation is cooling but prices are still painfully high 02:25 This story is part of CNN Business’ Nightcap newsletter. To get it in your inbox, sign up for free, here.
New York (CNN Businss)Bikes, both stationary and non, did a brisk pandemic business.
Bike shops around the country couldn’t keep them in stock as orders spiked and supply chains buckled. Peloton spent hundreds of millions of dollars in late 2020 to beef up its production and shipping operations as consumers complained about having to wait for weeks and months for their $2,000 bikes and treadmills to arrive.
It’s not hard to see why: Riding outside was a way to exercise, socialize and get from point A to B without risking Covid exposure on public transit. Riding indoors had a similar appeal — if you couldn’t work out in a big sweaty studio, at least you could connect virtually to a class led by reliably effusive instructors.
Here’s the deal: On Friday, Peloton said it would lay off another 800 people and jack up prices on some bikes and treads — part of a major cost-cutting revamp under its new CEO, who’s been tasked with righting the ship after the company failed to anticipate consumers’ desires to return to gyms. Peloton’s stock is down more than 90% from its peak in late 2020.
And bike retailers, not unlike other consumer goods peddlers, now face the opposite problem they had in 2020: Too much inventory, not enough demand. According to the Wall Street Journal, revenue […]