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Diminishing Demand for Temu Helps Domestic Dollar Stores -- Market Talk

Dow Jones
Jun 30

1024 ET - Demand for Temu continues to decline, as the Chinese bargain seller struggles to stay competitive amid uncertain trade policies. "Despite the pullback from 145% China tariffs, the removal of the de minimis exemption and a still elevated 55% combined China tariff rate have caused engagement with Temu to decline significantly," Morgan Stanley analysts say in a research note. Data from a recent survey show that Temu shoppers have declined to a record low since the survey launched in September 2023. This decline, the analysts add, in benefitting domestic Dollar Stores. "We believe Dollar Stores are benefitting from Temu's share loss, and we think this trend can continue through the end of '25 if the policy status-quo remains unchanged," they write. (connor.hart@wsj.com)

(END) Dow Jones Newswires

June 30, 2025 10:24 ET (14:24 GMT)

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