Temu, the fast-growing Chinese e-commerce platform selling $4 home decor and $10 shirts, is successfully taking on US dollar stores including industry leader Dollar General, according to the latest market share data, reports Reuters. As of last month, Temu accounted for nearly 17% of market share in the United States within the discount stores categories, according to data analytics firm Earnest Analytics. That compares to 8% for the dollar chain Five Below, 43% for Dollar General and 28% for Dollar Tree.
Temu launched in the United States in September 2022 and quickly became popular through its use of social-media influencers to tout its merchandise as better and more affordable than traditional stores.
“Its (Temu) low prices on household goods and consumer staples makes it more of a threat to brick-and-mortar discounters like the dollar stores than other online marketplaces,” said Michael Maloof, head of marketing at Earnest Analytics.
