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Study: U.S. shoppers pull back from Temu, Shein; shift spending to Old Navy, Ulta Beauty, Nordstrom Rack and others known for affordability

May 16, 2025 //  by Finnovate

New data from Consumer Edge showed a sharp deceleration in U.S. consumer spending growth in April on ultra-discount Chinese retailers Temu and Shein. In the three weeks leading up to April 27, American brands including Old Navy, Ulta Beauty, Nordstrom Rack and Savers Value Village picked up a significant amount of redirected consumer dollars from former Temu and Shein shoppers. According to the data, Temu’s U.S. year-over-year spend growth slowed sharply in April 2025, decelerating from nearly 50% growth at the start of the month to almost zero growth by the end. Shein experienced a similar deceleration, with year-over-year spend growth declining from approximately 30% to around 20%  during the same period.  “This dramatic slowdown coincides with rising U.S.-China trade tensions, the elimination of the duty-free de minimis treatment for low-value imports and a reduction in advertising spend that had previously fueled both platforms’ rapid growth,” noted Consumer Edge. To identify where consumers spent their money, Consumer Edge analyzed shoppers who made at least two purchases at Temu or Shein in January or February 2025 but no purchases in March or April. Key findings include: Old Navy regains market share: Long known for its affordability, Old Navy is reclaiming cost-conscious shoppers and capturing spending from those moving away from ultra-discount platforms. Its broad assortment of clothing for all age groups and genders continues to resonate. Legacy department stores reclaim value shoppers: Bloomingdale’s, Kohl’s and Nordstrom Rack are pulling in significant dollars from ex-Temu and Shein shoppers, benefiting from their wide selections across categories. Resale gains ground: Savers Value Village is also seeing momentum as resale becomes the new value frontier. Beauty shoppers shift: Retailer Ulta Beauty and brand SpoiledChild are benefiting from consumers looking to make personal care swaps.

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