One of America’s greatest love affairs is with cheap stuff.
Many retailers understand this obsession and are eager to cater to price-sensitive customers.
And in a race to the bottom, there’s always someone willing to go lower.
Some formerly hot big-name retailers have had a tough go of it as of late.
The fast-fashion retailer Forever 21 is reportedly mulling filing for bankruptcy for the second time in five years.
The bloodbath has continued into 2025: More than 3,000 store closures have already been announced this year.
“It puts other retailers on the back foot.”
In the realm of cheap stuff, there’s no such thing as cheap enough.
“These fast-fashion companies can cater to micro-trends as opposed to the traditional seasonal trend-forecasting retail model.”
But apparently, even that hasn’t been enough.
For its part, Etsy made its name as a marketplace for personalized, handcrafted items from tiny creators.
In recent years, though, it has expanded into offeringinexpensive mass-produced goodsin an effort to keep up.
Liberated pointed to a press release about its bankruptcy filing and otherwise declined to comment for this story.
Forever 21 and Shein did not respond to requests for comment.
Etsy declined to comment.
Most retailers don’t outright say that Shein and Temu are a problem for them.
But if you read between the lines, the issue is present.
Coresighthas estimatedthat Shein and Temu may be a $100 billion threat to traditional retailers.
“It’s a very aggressive strategy.”
Shein and Temu have a plan for that or at least they may not have to worrytootoo much.
For some context, nearly 1.4 billion shipments entered the US through the de minimis exemption last year.
Still, the executive ordercaused so much chaosat ports that it was put on pause.
It’s a similar story with the 10% tariff Trump has imposed on goods from China.
“Shein and Temu are rock bottom of the market,” Mercer said.
Some retailers have been able to ward off the Shein and Temu threat.
“You have to stand for more than low prices.”
Ladd added, “Retailers go out of business because they lose relevance with customers.”
Inflation has been a problem.
The economy is unstable.
It’s not clear what tariffs and trade conflicts will mean for the retail industry.
They’re also managing a price-obsessed American consumer who’s easily lured away.
When the barrier to entry is so low, there’s no significant consequence of consuming like this.
Hate thatmousepad you got on Temu?
Who cares; it was $2.74.
We live in anera of flash fads.
“I think we’re really bored,” Woloson said.
Emily Stewartis a senior correspondent at Business Insider, writing about business and the economy.
