Temu’s retention grows over time; leads Walmart, trails Amazon

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Over 28% of Temu customers made a transaction on the platform 16 months after their first purchase. This gives Temu nearly double Walmart’s and Target’s retention in the same period, but around half of Amazon’s. Temu’s gamified shopping and heavy marketing set it apart from lower retention discounters Wish and AliExpress, and niche marketplace Etsy.

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Temu’s retention curve bends upwards after 6 months into the coveted “retention smile” indicating customers become more valuable each month. Newer cohorts show lower initial retention than older ones, but still demonstrate the same eventual upward trajectory.