New data suggest brands like Bloomingdales and Old Navy are picking up market share
of ConsumerAffairsMay 15, 2025
-
Bloomingdale’s, Kohl’s and Nordstrom Rack are pulling in significant dollars from ex-Temu and Sheinshoppers, benefiting from their wide selections across categories.
-
Long known for its affordability, Old Navy is reclaiming cost-conscious shoppers and capturing spending from those moving away from ultra-discount platforms.
-
Resale gains ground: Savers Value Village is also seeing momentum as resale becomes the new value frontier.
In a reversal of recent retail trends, new data released by Consumer Edge, a provider of consumer insights, shows that American shoppers are significantly pulling back from ultra-discount Chinese retailers Temu and Shein, redirecting their spending to more traditional U.S.-based and resale-focused retailers.
Consumer Edge’s data reveals that both Temu and Shein saw their explosive growth trajectories stall dramatically in April. Temu, which had been enjoying nearly 50% year-over-year growth at the start of the month, saw that figure plunge to near zero by April 27. Similarly, SHEINs year-over-year growth dropped from about 30% to just 20% in the same time frame.
The deceleration came amid escalating U.S.-China trade tensions, regulatory crackdowns that removed duty-free status for low-cost imports, and significant reductions in advertising budgets for both platforms. These factors appeared to be shaking the foundations of what had previously been viewed as unstoppable discount juggernauts.
Where consumers are spending now
Using advanced cohort analysis, CE identified a clear migration of spending from Temu and Shein to a range of American value-oriented retailers and resale platforms. The analysis tracked consumers who had made at least two purchases from Temu or Shein in January or February, but none in March or April, revealing where their dollars are now going.
Key beneficiaries include:
-
Old Navy: Known for affordability and wide product assortment, Old Navy has seen a resurgence among budget-conscious consumers who are turning away from foreign discount apps.
-
Ulta Beauty and SpoiledChild: These beauty retailers are gaining traction among former Shein and Temu shoppers looking for quality personal care alternatives.
-
Nordstrom Rack, Kohls, and Bloomingdales: These legacy department stores are regaining their footing with shoppers attracted to more familiar and reliable retail experiences.
-
Savers Value Village: Resale is booming as consumers embrace secondhand shopping as a new form of value hunting.
Insights from the experts
Michael Gunther, vice president and head of Insights at Consumer Edge, emphasized the significance of the trend:
“The data isn’t just showing a slight dip we’re seeing a rapid reallocation of spend from these popular Chinese discount platforms, he said. Our cohort analysis shows not only the drop-off in spending but pinpoints the exact retailers now benefiting from it.”
Gunther added that geopolitical tensions and recent policy shifts have played a critical role in reshaping consumer behavior. Our near-real-time data shows where this significant shift in spend is landing, he said.
The consumer pivot away from Temu and Shein marks a potential turning point in the U.S. retail market. While these platforms gained popularity with their rock-bottom prices and massive digital ad campaigns, the emerging data suggest American consumers are re-evaluating not only price, but also product quality, delivery reliability, and broader geopolitical considerations.
Sign up below for The Daily Consumer, our newsletter on the latest consumer news, including recalls, scams, lawsuits and more.
.newsletter-form {
display: flex;
max-width: 400px;
margin: 20px auto;
background: #f8f9fa;
padding: 10px;
border-radius: 8px;
box-shadow: 0 4px 6px rgba(0, 0, 0, 0.1);
}
.newsletter-input {
flex: 1;
padding: 10px;
border: 1px solid #ccc;
border-radius: 5px 0 0 5px;
font-size: 16px;
outline: none;
}
.newsletter-input:focus {
border-color: #007bff;
}
.newsletter-button {
background: #2976D1;
color: white;
border: none;
padding: 10px 15px;
font-size: 16px;
border-radius: 0 5px 5px 0;
cursor: pointer;
transition: background 0.3s ease;
}
.newsletter-button:hover {
background: #0056b3;
}
#consumers #shifted #U.S #retailers #wake #tariffs