Online Reporter
Temu’s sales decline in the US is deepening as the online marketplace drastically cuts spending on advertising targeting American consumers, signalling a shift in focus after President Donald Trump’s tariff barrage.
Compared to a year ago, Temu’s weekly sales dropped more than 25 percent in the period from May 11 through June 8, according to Bloomberg Second Measure, which analyses credit and debit card data.
That’s in contrast to other e-commerce platforms run by Shein, Walmart and Amazon.com Inc., where weekly sales have all returned to year-on-year growth since Trump’s trade truce with China in mid-May.
The deepening sales decline comes alongside Temu’s cut in advertising spending, an abrupt turnaround in strategy after it spent big last year to attract the attention of US shoppers, including running commercials on Super Bowl night.
From creating thousands to tens of thousands of new advertisements daily before April 10, the numbers are now down to dozens or even single digits, with some days in June seeing no new commercials, according to analytics company AppGrowing Global.
“Temu’s sales growth has always been glued to their aggressive advertisements,” said Wu Yanwei, chief content director of AppGrowing’s parent YouCloud.
“The abrupt slowdown in advertisement spending is likely turning its growth engines off” in the US, Wu said, noting that Temu was channelling ad spending toward other markets including Europe.
While declining to specifically comment on sales and ad numbers, a spokesperson for Temu said the company has been working with local merchants across regions to deliver stable pricing to consumers. — Bloomberg
