Another well-known discount retailer in the United States, Dollar Tree, also released a report in March this year, saying that after suffering a significant quarterly loss, it plans to close 1,000 stores in the next few years, including 600 Family Dollar brand stores, to restructure its business. In the three months ending February 3, Dollar Tree's net loss reached US$1.71 billion.
After launching in the U low-price marketing strategies. By the end of the year, Temu had occupied about 17% of the market share in the U.S. discount retail category. Although it was still lower than Dollar General and Dollar Tree, Dollar General's market share had dropped from 57% in January 2023 to 43% in November, a drop of 14 percentage points; Dollar Tree's market share dropped from 32% to 28%, a drop of 4 percentage points.
Dollar General's stock price fell 50% in 2023, while Dollar Tree fell 24%. Michel Maloof, head of marketing at Earnest Analytics, believes that "Temu's lower prices on consumer goods and household goods pose a greater threat to physical discount stores."
New challenges
However, the latest news shows that the georgia whatsapp resource United States will crack down on an import method favored by e-commerce giants such as Temu and Shein.
According to a report on the Wall Street Journal website on April 6, the U.S. Department of Homeland Security said it would conduct stricter reviews of "small exemption" shipments, including laboratory testing and key law enforcement actions.
The action will "expand its scope" to investigate low-value packages sent directly from overseas to U.S. consumers to determine whether they violate some U.S. bans.
According to the report, the number of such packages sent to the United States has surged in recent years, with approximately 1 billion such packages entering the United States in this way in 2023, most of which came from China.
E-commerce companies such as Temu and Shein are likely to account for nearly a third of small exemption shipments, a report said.