In the ever-evolving retail world, giants don’t fall overnight, but they are descending. While changing consumer preferences and economic pressures have played a role, two online manufacturing officers Shein and Temu are accelerating the stunning collapse of traditional retailers.
Shein and Temu are with their ultra-low prices, lightning-fast trend cycles, and frictionless mobile shopping experiences, especially the wallets and attention span of young consumers. As influence grows, old brands that once ruled shopping malls and main streets are working to keep their lives on.
Many of these brick-and-mortar retailers failed to adapt quickly. Some people rely heavily on traffic. Others can’t compete with the ruthless affordability of their online competitors. But the common denominator is clear: Shein and Temu are reshaping the retail economy, and not everyone is reorganizing.
The rise of super fast, super cheap shopping
Shein and Temu have revolutionized the retail model by cutting prices and accelerating product cycles to whatever traditional stores can match. With its on-demand manufacturing and social media-driven marketing, Shein releases thousands of new items every day, often cheaper than morning coffee. Temu, supported by Chinese technology group PDD Holdings, uses aggressive discounts and gamified shopping strategies to attract deal-hungry consumers.
Both platforms operate with low overhead and large sales strategies. By skipping storefronts, cutting advertising costs with user-generated content and relying on overseas manufacturing, they can offer prices that large boxes and shopping mall brands cannot match. As a result, companies that once loyal to loyalty and name recognition have now seen traffic diminished and profits disappear.
Bed bath and beyond
Once a college dormitory, wedding and family makeover, Bed Bath & Beyond’s top choice for bankruptcy filed in 2023. Years of sales, supply chain problems and mismanaged leaders ultimately hit the digital competitors, offering cheaper alternatives. Platforms such as Temu and Shein, while initially known for their household goods, have actively expanded their categories, attracting customers to stay away from stores that don’t offer the best price or convenience.
Forever 21
Forever 21 actually invented the experience of American fast fashion shopping malls. But in recent years, it has been working hard to keep up with newer, agile competitors. Shein has the ability to reflect influencer trends and sell lightning brands for less price, completely surpassing the Forever 21 supply chain. As Shein continues to dominate the Generation Z market, the relevance of Forever 21 continues to disappear, and store closures and restructuring efforts cannot be synchronized with consumers’ flights.
Express
Express used to be an affordable work clothes and a semi-professional fashion staple. But with the hybrid working model taking over, consumer tastes shifted to casual and super-convenient styles, Express couldn’t shift quickly. Shein’s endless reels of stylish, low-cost alternatives make Express look both overpriced and outdated, especially for younger buyers, priced for convenience and brand heritage.
The children’s residence
For a long time, the children’s residence has been a household name for children’s clothing. But as Temu offers extreme discounts for children’s clothing, Shein quickly widens the boundaries for children and the competition becomes increasingly fierce. Now parents compare a $12 shirt from a traditional retailer to the nearly identical $3 version online, and it’s becoming increasingly obvious. When budgets are tight, even long-term trust in quality can shake, and the alternative is just a little bit.
RUE21
Rue21’s niche always comes in fashionable style at teen-friendly prices. But Shein has tucked this population firmly into its ecosystem, offering the same atmosphere with more variety, deeper discounts and newcomers around the clock. Rue21 filed for bankruptcy again in 2024, a clear sign that even affordable old brands are not safe when contradicting Shein’s algorithm-driven advantages.
jcpenney
Although JCPenney’s decline began with Shein or Temu entering the U.S. market, their rise accelerated the fall. Now that JCPenney has offered diversity, affordability and convenience under a roof, Shein and Temu now offer all three, plus free shipping, daily transactions, and a digital experience optimized for short-term attention spans. Young consumers no longer see the value of spending time in a vast department store when their phones offer endless alternatives.
What’s going on in the future
The success of Shein and Temu not only reveals the shift in the way people shop, but also their value: speed, price, and access. These platforms directly cater to today’s consumers’ algorithm-driven, impulse buying culture. To keep traditional retailers alive, they need not only online stores. They need to be fully invented.
The collapse of once useful chains seems miserable, but it is also a warning. The retail landscape has changed forever, and only the most adaptable brands can stand.
Do you think super cheap platforms are empowering consumers, or just making us compete towards a more inclined economy? What do traditional retailers need to do to compete?
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