Latest news with #ConsumerEdge
Yahoo
11-06-2025
- Business
- Yahoo
Temu, Shein pivot to Europe to bypass US tariffs
Chinese-founded budget e-commerce platforms Temu and Shein have been increasing their presence in European markets as their sales decline sharply in the United States. Consumer spending on Temu in the US fell by approximately 36% in May compared to the previous year, while Shein's spending dropped by 13%, according to data from Consumer Edge. Despite this growth opportunity in Europe, experts warn that both companies face mounting regulatory scrutiny similar to that encountered in the US. As US tariffs and trade policies have taken effect—such as the May end to a small-package tariff exemption and new duties as high as 54%—Temu and Shein have shifted their strategy towards European countries. Consumer Edge's data indicates that consumer spending on these platforms grew significantly in Europe in May, with Temu's sales rising by 63% in the EU and 38% in the UK year-over-year. Shein also saw increases of 19% in the EU and 42% in the UK. France, Europe's second-largest economy, emerged as a key market, especially for Temu. This European growth has been accompanied by increased advertising investments and efforts to expand warehouse capacity. Both companies are experimenting with localised business models to better adapt to the region's consumer preferences. However, Europe enforces stricter regulations on product safety, consumer protection, and competition, which require additional compliance and transparency efforts. Despite their expansion, Temu and Shein face intensifying regulatory challenges in Europe. The European Union is preparing to introduce a two-euro flat customs fee on low-value packages from online marketplaces, which previously entered duty-free. Industry experts describe this move as a strategic effort to regulate the rapid growth of ultra-cheap cross-border e-commerce and foresee significant impacts on the platforms' operations over the coming years. Further regulatory pressure comes from consumer advocacy groups and government bodies. The pan-European organisation BEUC has filed complaints against both companies, accusing them of employing deceptive marketing tactics known as 'dark patterns' that encourage overconsumption. The European Commission is also investigating Shein's adherence to EU consumer protection laws. Meanwhile, France is considering legislation specifically targeting ultra-cheap fast fashion products for their environmental impact. Beyond commercial regulations, Temu and Shein face scrutiny over labour practices and human rights compliance. US authorities have challenged Temu over alleged breaches of the Uyghur Forced Labor Prevention Act, which bans imports made with forced labour from China's Xinjiang region. Europe is advancing stricter oversight through the Corporate Sustainability Due Diligence Directive, requiring companies to address human rights abuses and environmental impacts within their supply chains. Analysts highlight that the rising global protectionism and differing standards on labour and sustainability are significant factors behind the growing regulatory hurdles. While Europe presents valuable growth opportunities, compliance with these evolving legal frameworks will be crucial for Temu and Shein's continued expansion in the region. Navigate the shifting tariff landscape with real-time data and market-leading analysis. Request a free demo for GlobalData's Strategic Intelligence . "Temu, Shein pivot to Europe to bypass US tariffs" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
10-06-2025
- Business
- Yahoo
Here's Where Consumer Purchase Data Shows Walmart Prices Rising
Walmart prices haven't risen dramatically across the board, but they're showing in some categories, according to Consumer Edge, a data and insights firm. Consumer Edge noted particularly high price increases in products including pet food, toothpaste and body wash. Industry experts have cautioned that any price actions Walmart takes could lead other retailers to do the warned that higher prices were on the way. Fresh data indicates that they're here. Walmart (WMT) CEO Doug McMillon said in May that the giant retailer was trying its 'best to keep our prices as low as possible. But given the magnitude of the tariffs... we aren't able to absorb all the pressure given the reality of narrow retail margins. The higher tariffs will result in higher prices.' Prices aren't rising dramatically across the board, but they're showing in some categories, according to Consumer Edge, a data and insights firm that analyzes daily shopper purchase data on packaged consumer goods. Industry experts have cautioned that any price actions Walmart takes could lead other retailers to do the same. According to the latest Basketview data from Consumer Edge, prices for some products are notably higher at both Walmart and Target (TGT), said Michael Gunther, the firm's head of insights. Between the 'Liberation Day' tariff announcements and June 1, according to Consumer Edge, the price of wet dog food was up 8%, rising alongside other varieties of dog and cat food. Gunther also noted higher prices at both chains for products including toothpaste and body wash. Earlier measures taken in May showed higher prices of liquid laundry detergent and crackers. Consumer Edge began to watch consumer packaged goods prices at Walmart and Target after McMillon's comments, according to Gunther, who said prices on everything from ingredients to packaging—as well as 'opportunistic' price hikes by retailers—could be increasing price tags. 'We didn't see any significant change initially—and then we did,' he said. In the week ended May 25, Gunther said, the prices started to tick up. Walmart declined to comment for this story. Target did not respond to Investopedia's request for comment in time for publication. Target executives said last month that tariffs weighed on its first-quarter sales. Best Buy (BBY) also recently said the company would consider price increases to soften the impact of tariffs on the business. Read the original article on Investopedia Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Forbes
09-06-2025
- Business
- Forbes
Wealthier Americans Spending Less On Air Travel Amid Trump Tariff Unease
Affluent consumers, seen as the most resilient segment of travelers, are spending significantly less on airline tickets, according to new credit card data, signaling a potential threat for an industry that has banked on premium customers seeing them through these economic turbulent times. Photo illustration of luxury first class. Credit card spending on airline tickets by high-income consumers—those making over $150,000 annually—saw a 7% step down in growth over the 35 days leading up to May 25, according to new data from Consumer Edge, a provider of consumer spending data. Lower-income consumers had already pulled back on airline spending immediately following the announcement of Liberation Day tariffs, April data showed. The May data shows a reversal from March and April, as 'the highest-income group went from the best growth rate to the worst, and if that persists, that could be a problem [for airlines],' Michael Gunther, VP and head of insights at Consumer Edge, told Forbes. This data 'might be a potential forward indicator, because if a weakness is being seen today in the spend, that's probably forward bookings,' Savanthi Syth, an analyst at Raymond James covering the airline sector, told Forbes. On first-quarter earnings calls in April, major U.S. airlines universally acknowledged that the uncertain economy had created significant weakness in demand for 'main cabin,' or economy seats, but they insisted that demand for premium seats remained strong. For first and business class flying, revenue per kilometer (RPK, calculated by multiplying the number of paying passengers by the distance traveled) declined by a massive 26.2% year over year in North America, far outstripping the 4.2% decline seen globally, according to an April market analysis by the International Air Transport Association (IATA), a global trade association representing airlines. This year is shaping up to be a disappointment for America's airline industry. As recently as January, major U.S. airlines were forecasting revenue growth in 2025 compared to 2024. But by mid-April, a shaky economy, exacerbated by President Donald Trump's Liberation Day tariff announcement, compelled Delta, American, Southwest and JetBlue to pull their full-year guidance for 2025, while United Airlines hedged by offering dueling outlooks: one if there is a recession and another if not. Since the start of the year, the Dow Jones U.S. Airlines Index is down 13%. United and Delta stock are down 11% and 13%, respectively, while American and JetBlue shares are down 30% and 33%, respectively, since the beginning of the year. So far, so good, insist the airlines. 'International trends continue to be strong,' American Airlines CFO Devon May said last month at the Wolfe Research Global Transportation & Industrials Conference, adding that the carrier expects positive revenues from that segment in the second quarter. Acknowledging declines in inbound demand from Canada and Europe, Andrew Nocella, United Airlines' chief commercial officer, noted in April that 'U.S.-origin demand has more than compensated for these reductions.' It's unclear if American travelers' appetite for foreign destinations will wane, given the greenback has tumbled 6% year over year, according to the DXY, an index that measures the dollar against a basket of foreign currencies. Compared to this time last year, the dollar is down 5% versus the euro, 6% against the pound sterling and down 8% versus the Japanese yen. That means Americans will pay more on the ground compared to last year when they visit these countries. Strong premium demand in recent years inspired many airlines to overhaul cabin interiors across their fleets to give a bigger presence to premium features like lie-down seats. In their first-quarter earnings reports, airlines continued to bank on premium to compensate for softening demand for 'main cabin,' or coach seats. For example, Delta Air Lines president Glen Hauenstein told investors in April that 'in a recessionary climate, premium demand has shown greater resilience compared to main cabin demand.' This new data from Consumer Edge may expose a chink in that armor. 'A lot of international flying is already bought for the summer, right?' Syth told Forbes. 'But what happens after the summer? And so it's interesting—this is kind of the first data point for that higher-income household that I've heard as seeing softening.' The hotel industry is also being impacted by lower consumer confidence. Last week, CoStar and Tourism Economics downgraded their joint U.S. hotel forecast for 2025, now projecting only 1% growth in revenue per available room (RevPAR), down from 1.8%, citing cooling demand and increased risk factors such as weaker leisure and corporate travel. Trump's Tariffs Sent U.S. Airline Bookings Into A Tailspin, New Data Show (Forbes)
CNN
22-05-2025
- Business
- CNN
Tariffs are hurting Shein and Temu. Here's where shoppers are looking for deals instead
Data analytics firm Consumer Edge used US 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.
CNN
22-05-2025
- Business
- CNN
Tariffs are hurting Shein and Temu. Here's where shoppers are looking for deals instead
Data analytics firm Consumer Edge used US 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.
