Data analytics firm Consumer Edge used U.S. transaction data to track shoppers who stopped buying from Temu and Shein and isolate how their spending has shifted. Michael Gunther, the company’s Head of Insights, shares the findings.

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

Chinese fast fashion retailers Shein and Temu have experienced a significant decline in U.S. sales growth, according to data analysed by Consumer Edge. The data, which tracks transaction records, indicates that both companies have shifted from previously strong year-over-year growth rates—Temu had been rising by 50 percent and Shein by 30 percent—to notable declines. The analysis shows a greater than 10 percent drop in year-over-year sales for Shein and over 20 percent for Temu.

The downturn in sales growth has been attributed to recent policy changes affecting Chinese imports, including the removal of a tariff exemption on goods valued under $800 and ongoing effects from trade tensions. Consumer Edge's research also examined where former Shein and Temu shoppers are now spending their money.

Findings reveal that these consumers have increased spending at department stores such as Bloomingdale's, Kohl's, and Nordstrom Rack. The research suggests that the diverse selection at these stores may appeal to shoppers who previously preferred Shein and Temu. However, the data does not indicate that these department stores are seeing overall surges in sales.

Former Shein and Temu customers are also shopping more at Old Navy, Savers Value Village, and the clothing rental service Newly, which is operated by Urban Outfitters. Old Navy's affordability and broad demographic appeal were cited as possible factors for this shift. Increased interest in resale options, such as Savers Value Village, aligns with wider trends in secondhand footwear and apparel shopping. The rental model offered by Newly may attract consumers looking for variety without higher spending.

Despite the changes in shopping destinations, overall consumer spending remains cautious, with trends indicating a redistribution of spending rather than a significant increase. The analysis highlights consumers' attempts to manage tighter budgets under current economic conditions.



Here’s where shoppers are looking instead of Shein and Temu

We were tracking Timu and Xi'an sales overall in the last couple of weeks. Sales growth totally collapsed. President Trump's trade war, plus the elimination of a tariff loophole on foreign imports under $800, is pummeling Chinese fast fashion giants Xi'an and Timu. Data analytics firm Consumer Edge is tracking the numbers. You had Timu, you know, rising by 50 percent, Xi'an up 30 percent year over year. And those growth rates have moved definitively into a negative territory. With data through May 11th, we're talking, you know, for Xi'an greater than 10 percent declines year over year and for Timu greater than 20 percent declines. So where are those customers spending their money instead? What our analysis found was consumers that used to shop at Timu and Xi'an really increased spending at an outsized rate at department stores like Bloomingdale's, Kohl's, Nordstrom Rack. I wouldn't have guessed that these would have popped up, but just given their broad selection, it sort of makes sense that the same type of shopper would be attracted to them. Now, to be clear, it's not as if sales at these department stores overall are surging. Time will tell whether or not the activity of the shoppers becomes widespread enough. Former Xi'an and Timu shoppers are also flocking to Old Navy, Savers Value Village and the subscription service Newly. Old Navy was notable. You know, it's relatively affordable. It appeals to a lot of different age groups, different genders. That kind of jived with what you might think a lapsed Timu and Xi'an shopper might do. Savers Value Village really made a lot of sense. Resale has been one of the big outperforming categories within power obsessors in footwear. And then interestingly, Newly, which is Urban Outfitters, a clothing rental brand, has benefited perhaps as these shoppers want a really wide ranging wardrobe but don't want to spend so much money on every single piece. But overall, consumers remain cautious. It's not as if the data is pointing to some real strength. It's just sort of a reallocation of spending and certainly a cautious consumer trying to manage a more stretched wallet.

The U.N. General Assembly brought high-level officials together to promote a two-state solution to the decades-old Israel-Palestinian conflict. Israel and the United States are boycotting the two-day meeting, co-chaired by the foreign ministers of France and Saudi Arabia

New York

Middle East Conflict

Israel and U.S. boycott UN Summit for two-state solution

With numerous countries facing an Aug. 1 trade agreement deadline, officials in the Trump administration say China could get an extension while negotiations continue.

Washington

Trump officials suggest potential tariff truce with China

Police say the man who shot and killed four people in a New York City office building before he took his own life had a "documented mental health history." Mayor Eric Adams says he may have been targeting the National Football League (NFL).

Manhattan gunman had 'documented mental health history'

Jeffrey Epstein-associate Ghislaine Maxwell is offering to testify before Congress in exchange for concessions like full immunity. CBS News Department of Justice reporter Jake Rosen has more.

Ghislaine Maxwell offers to testify before Congress

Prime Minister Keir Starmer said on Tuesday (July 29) Britain was prepared to recognize a Palestinian state in September at the United Nations General Assembly unless Israel takes a number of steps to improve life for Palestinians.

London

UK to recognize Palestinian state unless Israel takes action

Russia launched overnight air strikes on over 70 Ukrainian cities, killing more than 20 people, according to President Zelenskyy. A pregnant woman died near a hospital in the southeast, while a prison strike killed at least 17.

Kyiv

Ukraine Invasion

Deadly Russian air raids hit Ukraine as Trump warns of sanctions

For the first time, human rights groups inside Israel are accusing their own government of committing genocide in Gaza. Israel insists it is targeting Hamas, not civilians—despite nearly 60,000 Palestinian deaths since the war began almost two years ago.

Jerusalem

Rights groups in Israel accuse country of genocide

As Gaza’s crisis worsens, France is advocating for a two-state solution at a UN conference co-chaired by the French foreign minister. The meeting follows President Macron’s announcement that France will formally recognize a Palestinian state in September.

France leads UN talks on Israel-Palestine two-state solution

Former Colombian President Álvaro Uribe was found guilty of bribery and witness tampering in an unprecedented trial that has shaken the country.

Bogotá

Ex-Colombian president Uribe convicted of witness tampering, bribery

Russian Security Council Deputy Chairman Dmitry Medvedev posted on social media that President Trump's deadline push for a ceasefire with Ukraine is "a threat and a step towards war."

Moscow

Russian official calls Trump's ceasefire deadline 'a threat'

Ukraine says Russia's overnight air strikes hit a prison in Zaporizhzhia in the southeast, killing at least 17 people. Another 35 were injured. Authorities say the attacks destroyed the jail buildings and damaged several nearby houses.

Zaporizhzhia

Russian air strikes hit a prison in Ukraine's Zaporizhzhia, 17 killed

Russia launched yet another attack on Ukraine overnight, with more than 300 drones and seven missiles. While most of the barrage was intercepted, the attacks prompted President Trump to give his Russian counterpart an ultimatum.

Trump gives Putin new deadline to end Ukraine war

A gunman killed at least one police officer and shot a handful of other people Monday in the heart of New York City. CBS News New York has the latest details.

Gunman kills police officer, wounds others in Midtown Manhattan

The suspect in the Michigan Walmart stabbing attack that injured 11 people over the weekend pleaded not guilty Monday to terrorism and assault charges.

Traverse City

Suspect pleads not guilty in Walmart stabbing attack

The U.S. Department of Justice says it took down child abuse websites that had more than 120,000 members and contained millions of files. CBS News' Scott MacFarlane explains how the arrest of one suspect nicknamed "Boss" was a huge priority for the FBI.

U.S. Justice Dept. shuts down four child abuse websites

Five people, including security guards, were killed by a gunman at Bangkok's Or Tor Kor market on Monday. The shooter, who injured two others, later killed himself, according to authorities.

Bangkok

Gunman kills five at busy Bangkok fresh food market

Thailand and Cambodia have agreed to an “unconditional” ceasefire starting at midnight, Malaysian Prime Minister Anwar Ibrahim said on July 28, a significant breakthrough to resolve five days of deadly border clashes.

Kuala Lumpur

Thailand and Cambodia agree to ceasefire

Truckloads of food reached hungry Gazans on July 28 after Israel promised to open secure aid routes, but humanitarian agencies warned vast amounts more were needed to stave off starvation.

Food arrives in Gaza after Israel pauses some fighting

Top U.S. and Chinese economic officials will resume talks in Stockholm to try to tackle longstanding economic disputes at the center of a trade war, aiming to extend a truce by three months and keeping high tariffs at bay.

Stockholm

U.S.-China trade truce extension seen, may ease way for Trump-Xi meet

A train derailment in southern Germany killed at least three people and injured others. The cause is under investigation, with weather possibly a factor.

Riedlingen

German train derails, killing at least three people

Israel has agreed to limit fighting in parts of Gaza and would allow more aid into the region, but both moves are facing criticism for being too little too late.

Israel announces daily pauses in Gaza fighting as aid trickles in

Abnormally high temperatures combined with heat and drought have fuelled destructive wildfires in parts of Europe, forcing thousands to be evacuated.

Athens

Heat fuels destructive wildfires in parts of Europe

Michigan officials say they will file terrorism charges and 11 charges of assault with intent to murder against the man who allegedly carried out a knife attack at a Walmart on Saturday. Lana Zak reports.

Garfield Township

Suspect in Michigan stabbing rampage to face terrorism charges

FAA investigators are in Denver after passengers and crew aboard an American Airlines flight were forced to evacuate when a tire blew during takeoff and the plane's rapid deceleration caused a brake fire, the airline said. Elise Preston reports.

Denver

Passengers evacuate burning plane in Denver

President Trump announced Sunday that the U.S. and European Union have come to a trade agreement after high-stakes meetings in Scotland. Weijia Jiang reports.

Edinburgh

Trump announces trade agreement with the European Union

Israel says it will now establish secure routes through the war zone in Gaza so aid convoys won't be shot at or looted. Elizabeth Palmer reports.

Tel Aviv-Yafo

Israel says it will establish secure routes for Gaza aid

U.S. President Donald Trump played golf Saturday at his course on Scotland's coast while protesters around the country took to the streets to decry his visit and accuse United Kingdom leaders of pandering to the American president.

Protesters in Scotland take to the streets to decry Trump's visit

Following four days of border clashes which have left over 30 people dead, the two sides have agreed to Malaysia acting as a mediator in the conflict.

Thailand, Cambodia to meet in Malaysia for ceasefire talks

Protesters gathered in front of the U.S. consulate in Edinburgh to oppose President Trump's visit to Scotland. Mr. Trump plans to host the U.K.'s Prime Minister Keir Starmer and the President of the European Union, Ursula von der Leyen, for trade talks at his personal properties.

Demonstrators protest Trump's visit to Scotland

The Israeli military said Saturday that it will resume aid airdrops into Gaza and open humanitarian corridors for United Nations convoys amid increased international pressure and accounts of starvation-related deaths in the territory.

See The Full Story

Global Tariffs