Beyond the Basket - 07/08/25

New US tariffs up to 50% hit 90+ countries, disrupting global sourcing strategies for online sellers and DTC brands reliant on Asia and Europe.

Ecommerce logistics face fresh hurdles as Southeast Asian producers see steep levies, Laos and Myanmar at 40%, Taiwan at 20%, and EU goods at 15%.

Tariff pressure nudges manufacturers stateside, Apple commits $100B to US production, while chipmakers with US facilities avoid 100% import tax.

Shopify posted €2.3B in Q2 revenue, a 31% increase year-over-year, with free cash flow margin reaching 16%. The standout region was Europe, where GMV grew 42% on a constant currency basis.

Strategic feature rollouts, like multi-currency payouts for European sellers, have driven adoption and retention, reducing friction for cross-border ecommerce and boosting competitiveness.

Shopify now claims nearly 40% market share among German SMBs, reflecting its strong position in Europe’s fragmented ecommerce software landscape and rising preference among local merchants.

Peloton posted $21.6M in Q4 net income, outperforming analyst forecasts. Strong bike and treadmill sales lifted hardware revenue to $198.6M, helping gross margin rise 5.6 points to 54.1%.

To cut another $100M in expenses, Peloton will lay off 6% of its workforce and reduce indirect costs. This follows $200M in cuts made during fiscal 2025.

CEO Peter Stern outlined plans to scale micro-stores, grow the resale market, triple instructor events, and expand globally using AI dubbing and local content through partnerships with Precor and new international strategies.

River Island’s High Court hearing has been delayed to 8 August, where approval is needed to push forward a major restructuring plan. The proposal includes closing 33 underperforming stores, slashing rents on 71 locations, some to zero, and writing off legacy debts.

Roughly 80% of creditors supported the plan by value, but it failed to meet the required 75% threshold across all creditor classes. Major landlords like British Land and the Crown Estate remain opposed, jeopardizing the deal.

The Lewis family, founders of the brand, has offered a £40M emergency loan via Blue Coast Capital, River Island’s largest creditor with £270M exposure, if the court green-lights the plan.

Cart abandonment fell slightly to 72% in H1 2025, still higher than the same period in 2024, per uptain's analysis of 1,500+ ecommerce sites.

Shoppers are making faster decisions, with average session duration down to 4 minutes 20 seconds, 35 seconds shorter than H2 2023.

Inactivity remains the top cause of drop-offs, while pop-up discounts (most often 5–10%) and smoother checkouts are helping retain more buyers.

Claire’s filed for Chapter 11 in the U.S., with 18 U.S. store closures and plans to sell some or all of its assets.

The retailer is burdened with $1B–$10B in debt and cites falling foot traffic, tariffs, and changing consumer trends as key pressures.

Analysts say a second bankruptcy often signals liquidation risk; Claire’s future now hinges on debt restructuring and potential partner deals.

The ASA banned two Zara ads for showing models deemed “unhealthily thin,” citing styling, lighting, and poses that exaggerated gaunt features.

The May campaign sparked concerns over body representation; two other ads from the shoot were investigated but cleared.

The ruling follows a similar ban against Marks & Spencer, signaling tougher ASA scrutiny on unhealthy body portrayals in fashion ads.