Beyond the Basket - 30/09/25

Tuesday 30th Septmeber | #40 | Join Free

Hello and welcome to your Tuesday Beyond the Basket brief. Let's kick things off with news that should make both Amazon and Google nervous: ChatGPT now lets you buy stuff without leaving the conversation. U.S. users can already shop Etsy, Shopify's coming soon, and suddenly your friendly AI assistant is also your checkout counter. We're not saying we're going to impulse-buy artisanal candles while asking for recipe suggestions, but we're also not not saying that.

In today’s beyond the basket:
🛍️ OpenAI Adds Instant Checkout to ChatGPT
🚨 Lululemon Faces $240M Hit from Tariff Shift
📉 Asos Balances Sales Decline with Profit Gains
🏡 Ikea Expands into Home & Energy Services
🥑 Whole Foods Leans Into Value Amid Shopper Shift

+plus four longer reads to give you the edge over the competition.

TL;DR: U.S. users can now buy Etsy and soon Shopify products directly inside ChatGPT conversations.

Why It Matters: This move puts ChatGPT in direct competition with Google Shopping and Amazon as a discovery-to-purchase channel. By collapsing product search, recommendation, and checkout into one conversation, OpenAI could shift the customer journey away from search engines and marketplaces. For Shopify merchants, it’s a chance to tap into 700M+ weekly ChatGPT users without extra infrastructure. Expect rising questions around fees, product ranking transparency, and how multi-item carts will work.

Your Move: Start experimenting with Generative Engine Optimization (GEO), structuring product data and descriptions so LLMs surface your brand in conversational shopping.

TL;DR: The end of the U.S. de minimis duty exemption will cut Lululemon’s 2025 gross profit by $240M, forcing supply chain and pricing adjustments.

Why It Matters: Roughly two-thirds of U.S. eCommerce orders were shipped from Canada and previously qualified for duty-free entry. With that loophole gone, costs are spiking and margins tightening, Lululemon expects a 170 bps gross margin decline this year, with $320M in tariff-related pressure carrying into 2026. The brand is negotiating vendor rates, raising prices selectively, and reevaluating its distribution footprint, but near-term headwinds remain steep.

Your Move: The hype has faded, but tariff and trade headwinds remain. Stress-test your margins and fulfilment models now, cost creep here can outpace promo spend.

TL;DR: Asos shares fell 11% after reporting weaker-than-expected sales, but profits improved thanks to major cost reductions and margin discipline.

Why It Matters: The retailer is deep in transformation mode, profitability is rising even as turnover lags. Moves like renegotiating supplier contracts, cutting fulfilment costs, and reducing returns have permanently lowered its cost base, setting up FY26 for stronger profitability. Still, with the stock down over 40% YTD and investors skeptical, the real test will be reigniting customer demand while sustaining efficiency gains.

Your Move: Track how Asos and peers pursue profitable growth over pure volume, a model shift that could redefine competitiveness in fashion ecommerce.

Wider Context:
Inditex Plots Lefties’ UK Debut as Budget Fashion Battle Heats Up - Zara’s parent eyes flagship sites for its low-cost chain, challenging Primark in stores and Shein online. Read More →

TL;DR: Ikea launched its Life at Home service, offering home move assistance, renewable energy switching, and a new Ikea Family credit card.

Why It Matters: This marks Ikea’s shift beyond furniture into lifestyle and utility services, positioning itself as a partner for everyday life transitions. By bundling relocation support, energy upgrades, and flexible finance, Ikea is building deeper customer stickiness and aligning with the growing push toward sustainable living. The move echoes a broader retail trend: turning brand ecosystems into platforms for services, not just products.

Your Move: Explore adjacent services that complement the customer journey, ideally ones that create growth loops, like Ikea’s credit card and home services.

TL;DR: Whole Foods is cutting prices on 25% of its assortment and doubling down on deals as even high-income shoppers become more cost-conscious.

Why It Matters: The premium grocer, once nicknamed “Whole Paycheck,” is repositioning around value messaging and private-label growth. With 87% of consumers changing habits to save money, Whole Foods is using its 365 brand for entry-level pricing while still offering premium options—a dual-value strategy. Weekly promotions and in-store “seas of yellow” sale signage show how even upscale retailers must adapt to a discount-driven mindset. The bet: value wins loyalty, while small “feel-good luxuries” keep the experience aspirational.

Your Move: In Q4, put value at the core of your proposition, not just promotions. With margins tight and wallets stretched, flexible tiering, private-label strength, and smart promotional rhythms will matter more than blanket discounts.

Wider context:
Amazon Shuts All UK Fresh Stores, Pivots Back to Online - Tech giant shutters 19 cashier-free stores, shifts focus to Whole Foods and online grocery delivery in the UK. Read More →

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

Sustainability Is Built Through Collaboration, Not Imposition
Inc. (6 min read) Read here
Why supply chain sustainability only works when companies co-create with suppliers and communities, not impose demands.

Small Businesses Find It Hard to Breathe as Tariffs Persist
PYMNTS (5 min read) Read here
Tariffs are squeezing SMBs, forcing tough choices on pricing, sourcing, and survival.

Banana Republic Bets on Vintage With Archive Collection
Retail Dive (4 min read) Read here
Gap Inc.’s Banana Republic launches an archive-driven vintage collection to reignite brand relevance.

How to Build a Cross-Border Team Without Losing Speed
EU-Startups (7 min read) Read here
Practical strategies for keeping globally distributed startup teams agile and effective.