According to data from Earnest, Temu experienced a significant reduction in shopper activity in August 2024 compared to January. Still Temu performs well in Discount spending market as reported by Financial Times.
Temu's platform saw a 25% drop in shoppers between January and August 2024, per Earnest credit card data.
The decline is surprising given Temu's explosive growth in its first two years.
Despite the decline, Temu’s customer post-acquisition value remains higher than its competitors.
Shein and TikTok Shop grew its customer base in the first 8 months of 2024.
TikTok Shop joined Amazon, Walmart, and Target in offering summer discounts, boosting sales during the summer.
These platforms benefited from shifts in consumer interest and aggressive promotional campaigns.
Temu captured 17% of US discount spending in just two years, per Earnest Analytics.
Dollar General’s market share dropped from 63% to 52% over the same period.
Dollar Tree’s share also fell, now holding 19.5% of the market.
Temu undercuts US stores by shipping cheap goods directly from China, disrupting the dollar store model.
Will Temu manage to retain its shoppers in the long term?
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