John Winning needed a leg up as questions are raised about the exit of several senior executives from the NSW Winnings Appliances business, now he has it with a deal to distribute the struggling Peloton tread mills which have been banned in the USA.
During the last years the share value of the Peloton business has fallen over 28% despite the business moving to set up an Australian operation.
John Winning a former PR Junkee similar to Ruslan Kogan has not commented on his new deal after voluntary recalls of two Peloton treadmill products due to safety concerns impacted the business, Peloton’s new lower-priced treadmill became available for sale in the U.S., U.K. and Canada on Aug. 30 but there was no mention of an Australian deal.
Most agree that the near-term opportunity for Peloton is minimal with questions being raised as to whether the business will actually get off the ground in Australia.
Sales of its pricier Tread+ product are still paused but this has not stopped the Australian operation spruiking the Companies products in Australia.
Peloton said its forecast for the current quarter includes only a “very small contribution” from lower-priced Tread sales.
The business has also admitted that return rates for both of its treadmill products were higher than it had initially expected with consumers turning to other brands in the fitness market.
In the USA the business was forced to offer Pa generously long return window of 18 months for a full refund.
The Wall Street Journal claimed that consumers could conceivably use their machines for a good stretch of the pandemic, only to request a refund 17 months later when they potentially get fed up of the Peloton product or want something new.
Already, Peloton has warned of a “double whammy” effect, as the Tread carries a lower margin which could impact overall revenue.
Winning Group’s logistics arm, Winning Services was recently appointed as the logistics provider for Peloton products in Australia.
Peloton Australia recently appointed country manager, Karen Lawson has not commented on why she chose an appliance distributor over other mainstream distributors of sporting goods.
John Winning is believed to be residing oversees during COVID lockdowns.
