Beyond the Basket - 14/08/25

Thursday 14th August | Join Free

Hello, this is your Beyond the Basket daily brief.

In today’s issue:
🛒 Amazon Expands Same-Day Grocery Delivery to 1,000 Cities
📉 Claire’s UK Falls into Administration
🛒 Klarna’s Losses Deepen Ahead of IPO
🔐 Cyber Attacks Threaten Online Spend from Under-35s
👕 Gildan to acquire Hanesbrands for $2.2B

+plus four deep reads, and two tools that could help super charge your ecommerce support and analytics.

TL;DR: Amazon has launched same-day grocery delivery in over 1,000 U.S. cities, with plans to reach 2,300 by the end of 2025. Prime members get free delivery on orders over $25.

Why It Matters: Groceries and household staples are among Amazon’s most purchased items, prompting the company to invest in temperature-controlled fulfillment and rapid logistics to capture more share in everyday essentials. The move extends Amazon’s dominance into rural and mid-sized markets where grocery competition is often limited, raising the stakes for regional grocers and delivery services. Orders can now combine food with non-grocery items in one cart, broadening convenience appeal.

Your Move: If you’re a grocery or CPG brand, prepare for heightened competition in delivery speed and convenience. Strengthen your own same-day or rapid fulfillment capabilities and emphasize local sourcing, freshness, or unique assortments to stand out against Amazon’s scale.

TL;DR: Claire’s UK and European Services have entered administration after failing to secure a buyer, putting 2,150 jobs and 306 stores at risk. The move comes just a week after the US arm filed for Chapter 11 bankruptcy.

Why It Matters: Claire’s UK CEO has blamed the collapse on a sharp decline in brick-and-mortar footfall and the ongoing shift to e-commerce, which the business struggled to adapt to. The fallout comes amid wider high street strain, River Island is cutting 110 jobs and Hobbycraft is closing nine stores. The British Independent Retailers Association (Bira) is calling for urgent government action, including reducing business rates and closing the £5.9bn low-value import loophole that it says is draining sales from domestic retailers. With Claire’s burdened by £355m in debt due Dec 2026 and halting ecommerce and refunds, customer trust and cash flow are under pressure. Without policy shifts, more legacy specialty retailers could face the same fate.

Your Move: Claire’s collapse is a warning for specialty retailers facing low footfall and cheap online imports. Focus on financial discipline, build cash reserves, cut fixed costs, and reduce exposure to low-value import competition by differentiating on delivery speed, quality, or unique product offerings.

TL;DR: Klarna posted a $53m Q2 loss, up from $18m a year ago, as provisions for bad loans surged 64% to $174m despite nearly 20% revenue growth.

Why It Matters: The jump in provisions comes as Klarna ramps up its “Fair Financing” loans for higher-ticket purchases. While delinquency rates fell to 2.23%, the company sets aside funds upfront to cover potential defaults. GMV hit $31.2bn (+19%), with US volumes accelerating 37% thanks to Apple Pay, Google Pay, and DoorDash partnerships. The Swedish BNPL giant is pushing hard into digital banking, winning UK approval to offer savings accounts and preparing for a wider debit card launch. These moves come as Klarna eyes a September US IPO after earlier delays. The challenge: balancing aggressive product expansion with tighter credit controls in a cautious capital market.

Your Move: For ecommerce leaders, Klarna’s expansion into debit cards and savings accounts means your customers may soon treat Klarna like a primary payment option, not just BNPL. Review your checkout flow to ensure smooth Klarna integration and assess whether its newer “pay now or later” flexibility could increase conversion rates and AOV, especially for higher-ticket items, while keeping a close eye on returns and repayment trends.

TL;DR: A surge in retail cyber attacks is eroding online trust among younger shoppers, with 79% of UK consumers aged 25–34 concerned about data breaches and one-third considering cutting back online purchases.

Why It Matters: Attacks on major retailers like M&S, Coop, Harrods, Ahold Delhaize USA, and Pandora have disrupted operations and shaken consumer confidence. While overall UK online spending is still growing (+3.3% QoQ in Q2 2025), the heightened caution among under-35s, the most digitally native segment, risks slowing growth in a still-fragile retail recovery. Online pure-plays are particularly vulnerable as they lack the fallback of in-store sales.

Your Move: Audit your cybersecurity posture and highlight visible protections on your site. Offering secure payment options like Apple Pay or PayPal can reassure younger shoppers and reduce friction, helping to retain a demographic that’s showing signs of pulling back.

TL;DR: Gildan Activewear will buy Hanesbrands for $2.2B in cash and stock, paying $6 per share, a 24% premium to Monday’s close.

Why It Matters: The acquisition combines Gildan’s wholesale strength with Hanesbrands’ consumer brands (Hanes, Maidenform, Playtex, Bonds). Hanesbrands has battled sales declines, debt, and failed acquisitions since 2006, but recent cost cuts have improved margins. Gildan’s low-cost manufacturing expertise could unlock efficiencies and improve profitability. The deal includes a review of Hanesbrands Australia for possible sale and is expected to close late 2025 or early 2026, adding immediately to adjusted EPS.

Your Move: Gildan’s bigger footprint especially in POD (Print on Demand) strengthens its position but could lead to higher blank prices over time. Diversify your supplier base now to safeguard margins and maintain flexibility as market concentration grows.

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Curated deep dives, longer reads, and analysis shaping the future of ecommerce, retail, and marketing.

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