Post New

From an FT article, seems Temu is stealing some market share within discount, according to Earnest (they track CC data)
Excerpt from article:"In the space of two short years, its share of US discount spending has gone from zero to 17 per cent, according to consumer data analytics firm Earnest Analytics."
DG's fell from 63% to 52% and DLTR from 25.5% to 19.%

https://www.ft.com/content/ac297f38-ffeb-4761-a79d...

Competition from Temu is my single biggest concern about my investment in DG. It seems like its a real change in their business, and while very recent, introduces an important long term competitor of significance. But I haven't seen it discussed by analysts and management to the extent that I thought it would be. This is contrast to retail theft which everyone loves to talk about, but which I have concluded is overblown in terms of its true impact on the business. Because of this dichotomy, I haven't quite been able to figure out if Temu is as big an issue for these stores as it seems to me like it should be. If management isn't identifying it as a core issue for the sector, am I worrying too much about this new competitor? Data like the one in the FT article says I am not - a shift of 10 share points in two years is enormous!

The link below somewhat answers your question. Bad news: DG customers that also shop at Temu, are spending more at Temu than DG. Good news: over the last year less DG customers are shopping at Temu (3Q23 14.4% of DG customers vs ~10% so far in 3Q24)


https://www.earnestanalytics.com/insights/all-post...

Post New

Tesla FAQ

---

Contact Shrewd'm
Contact the developer of these message boards.