Temu burst onto the USretail scene in September 2022, winning over shoppers with ultra-low prices and aggressive ad campaigns. But while its initial growth was fueled by new customers, its long-term success is now driven by repeat buyers.
USretail and ecommerce sales will maintain stable growth over the next five years, with pockets of opportunity emerging from new digital consumers and mobile-first online shopping trends.
Amazon鈥攖he largest driver of spending in this channel鈥攈as recently seen modest retail media revenue growth relative to its past performance. As a result, we have revised our retail media forecast down from where it was in H1 2024.
Social commerce is the fastest-growing USretail channel, and retailers will need to offer a seamless payment experience to maximize the opportunity. Understanding payment preferences will be key to ensuring conversion at checkout.