Beyond the Basket - 08/08/25

River Island has secured High Court approval for a restructuring plan involving 33 UK store closures, rent cuts at 71 more, and payment suspensions of up to three years from some landlords.

The retailer faces a projected £43M shortfall and is seeking £54M in new funding to stabilise operations amid falling footfall, supply chain woes, and rising costs.

Without court approval, River Island warned it would likely enter administration; the plan aims to cut costs, secure investment, and reposition the brand for long-term viability.

Peloton will lay off 6% of its staff as part of a broader restructuring aimed at cutting $100M in operating costs by fiscal 2026, including relocating roles and reducing indirect spend.

The company cited high operating expenses as a barrier to investing in growth areas like strength training and wellness, which CEO Peter Stern sees as core to its future.

Peloton posted a $21.6M profit in Q4, reversing a $30.5M loss YoY, while operating expenses dropped 20% and net debt fell 43% over fiscal 2025.

Bol.com leads Dutch ecommerce with €5.17B in GMV, though growth is flat; Amazon.nl ranks second at €3.7B and is growing steadily, narrowing the gap.

Fast-rising players like AliExpress, Shein, Temu, and Vinted are all showing “strong growth,” each exceeding €1B in Dutch sales last year.

Of the top 10, foreign platforms now outpace domestic ones in growth, reflecting shifting consumer preferences toward global ecommerce brands.

Zara has opened a 32,291 sq ft concept store, its largest in the UK, featuring its newest global flagship design integrating tech, sustainability, and boutique-style fashion zones.

The store includes an automated garment sorter, assisted checkout and return stations, real-time inventory tracking, and in-store support via the Zara app.

Sustainability features include packaging recycling, clothing donation bins, and an in-store repair booking service, supporting the brand’s growing circularity efforts.

Small and midsize brands are trimming customer service teams and deploying AI bots to offset rising costs from new U.S. tariffs, particularly on Chinese imports.

AI tools now handle 50–70% of support tickets at brands like Beau Ties of Vermont and Outlines, cutting monthly costs and reducing outsourced headcount.

Broader AI adoption is accelerating amid a softening labor market, with companies like Made In and Williams-Sonoma using automation to stay lean without sacrificing service.

Warby Parker will phase out its home try-on program by year-end, citing that most users now live within 30 minutes of one of its 300 retail locations.

The brand is doubling down on physical and digital channels, with 45 new stores planned for 2025 and growing adoption of virtual try-on tools.

Q2 revenue rose 14% to $214.5M, net loss narrowed 74% to $1.8M, and active customers hit 2.6M. The company raised full-year revenue guidance to as high as $888M.