Thursday 7th August
In today’s Beyond the Basket:
🌍 Trump’s Global Tariffs Shake Up Ecommerce Supply Chains
🛒 Shopify’s European GMV surges 42% YoY
🚴 Peloton Posts Surprise Profit, Cuts 6% of Staff in $100M Cost Push
🛍️ River Island Restructuring Hangs in Balance Ahead of Key Court Ruling
🛒 Cart Abandonment Still High at 72%, Despite Checkout Improvements
📉 Claire’s Files Chapter 11 Again Amid Mounting Debt and Market Pressures
🚫 Zara Ads Banned Over ‘Unhealthily Thin’ Model Depictions
Let’s get into it 👇
🌍 Trump’s Global Tariffs Shake Up Ecommerce Supply Chains LINK
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’s European GMV surges 42% YoY LINK
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 Posts Surprise Profit, Cuts 6% of Staff in $100M Cost Push LINK
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.