The State of

Retail In the U.S.

An Analysis of Retail Mobile App and Digital Advertising Trends in the United States.
 © 2022 Sensor Tower Inc. - All Rights Reserved

Introduction
This report, which leverages Sensor Tower’s Store Intelligence and Usage
Intelligence data, as well as our Pathmatics data, explores the Retail Brand app
space in the U.S.

The analysis includes:

- Retail Brand app download and revenue trends from January 2021 through
March 2023.
- Demographic data for selected Retail Brand Apps.
- Retention and time spent data for selected Retail Brand apps and subcategories.

The report is broken down into four main sections:

- Top Retail Brand Apps: An overview of the main mobile trends for the top retail
brand apps.
- Beauty Apps: Apps such as Sephora and ULTA, which help users discover,
purchase, or learn about beauty products.
- Fashion Apps: Apps such as SHEIN and CIDER,.which enable users to explore,
shop, and stay updated on the latest trends in clothing and footwear.
- Retail Media Networks: A retailer-owned advertising platform employing their
website, app, and other digital platforms within their network, allowing brands
and advertisers to advertise to customers. The rapid growth that RMNs are seeing
and unique opportunities to be found for brands willing to allocate the budget.

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 MARKET OVERVIEW 04

BEAUTY RETAIL APPS 07

FASHION RETAIL APPS 11

RETAIL MEDIA NETWORKS 15

CONCLUSION 20

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 Market Overview
U.S.
4 | © 2023 Sensor Tower Inc. - All Rights Reserved
 Chinese-Based 2021 2022 Q1 2023

Retail Apps 1 Amazon

Amazon Mobile
1 Amazon
Amazon Mobile
- 1 Temu +6

Dominate Top
Temu

SHEIN SHEIN
App Rankings 2 Sheinside Group
2 Sheinside Group
- 2 SHEIN
Sheinside Group
-

by Downloads 3
Shop
3
Walmart +1 3 Amazon -2
in the U.S.
Shopify Walmart Amazon Mobile

Walmart Shop Walmart

4 Walmart 4 Shopify
-1 4 -1
Walmart
Top Retail Apps by Downloads in
the U.S. (App Store and Google
Nike Etsy Shop
Play) 5 Nike 5 Etsy
+3 5 Shopify
-1

eBay Nike Etsy

6 eBay 6 Nike
-1 6 Etsy
-1

Target Temu Nike

7 7

NEW
Target 7 Temu Nike
-1

Subcategory Etsy eBay eBay

8 Etsy 8 eBay
-2 8 eBay
-

MarketPlace General Retail Wish Target -2 Target

9 ContextLogic 9 Target 9 Target
-

Beauty &
Fashion
Personal Care Walgreens Bath & Body Works Alibaba

NEW
10 10 10

NEW
Walgreen Co. Bath and Body Works Alibaba

5 | © 2023 Sensor Tower Inc. - All Rights Reserved

 Temu Breaks into 2021 2022 Q1 2023

the Top 5 Retail 1 Amazon

Amazon Mobile
1 Amazon
Amazon Mobile
- 1 Amazon -

Apps by Monthly
Amazon Mobile

eBay eBay
Active Users in 2 eBay
2 eBay
- 2 eBay
eBay
-

the U.S. 3
SHEIN
3
SHEIN - 3 SHEIN -
Sheinside Group Sheinside Group Sheinside Group

Top Retail Apps by MAU in the U.S.

(App Store and Google Play) Walmart Walmart Walmart
4 Walmart 4 Walmart
- 4 Walmart
-

Wish Target Temu

5 5 5

NEW
+1
ContextLogic Target Temu

Target Etsy AliExpress

6 Target 6 Etsy
+2 6 Alibaba
+2

AliExpress Nike Target

7 Alibaba 7 Nike +3 7 Target
-2

Subcategory Etsy AliExpress Etsy

8 Etsy 8 Alibaba -1 8 Etsy -2

MarketPlace General Retail Shop Shop - Nike

9 Shopify 9 Shopify 9 Nike
-2

Beauty &
Fashion
Personal Care Nike GOAT Shop

NEW
10 Nike 10 GOAT 10 Shopify
-1

6 | © 2023 Sensor Tower Inc. - All Rights Reserved

 Beauty Retail
Apps: U.S.
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 Beauty Apps See Overall
Downloads Climb Year-over-Year
Quarterly top beauty app installs, U.S., Q1 2022 v.s. Q1 2023 ULTA6

With the recent shift in consumer purchasing from traditional brick-and-

Sephora5
mortar stores to mobile shopping, top beauty apps have gained
significant popularity in the past year, seeing a combined total of
1.9M downloads, up 113 percent in Q1 2023 year-over-year.
Flip.shop4
The majority of these gains came from Sephora which saw installs grow
from 490K in Q1 2022 to 1.2M in Q1 2023, a roughly 143 percent increase
YoY. The app’s monthly installs hit a record 539K in April 2023, resulting in
the app supplanting ULTA as the top Beauty App. IPSY3
Flip.shop, a relatively new beauty app, is rapidly gaining popularity in the
U.S.. It has quadrupled its downloads YoY, from 109K in Q1 2022 to 476k in
Q1 2023, and has climbed to the No. 3 position among beauty apps. With SALLY2
an impressive 36% of its users under the age of 25, Flip.shop has
successfully attracted a younger demographic in comparison to its
competitors, ULTA and Sephora, which have less than 25 percent of their
apps’ users in this age bracket. Scentbird1

0 300K 600K 900K 1.2M 1.5M

8 | © 2023 Sensor Tower Inc. - All Rights Reserved

 Sephora and ULTA Shifted
Their Ad Budget Toward Social 8M

Top 6 beauty apps’ monthly downloads and ad spend, U.S., January 2022
through April 2023

Social advertising has played an important role for Beauty Apps.

6M
An analysis of top Beauty apps’ ad spend and download data between
January 2022 and April 2023 suggests a strong positive relationship
Facebook
between social ads and new app downloads. Looking at display and video

Monthly Downloads
advertising, there is a relatively weak association. Beauty apps may find more
opportunity to grow by advertising on social channels, particularly Facebook
and Instagram.
4M

Both Sephora and ULTA, major players in the beauty industry, have shifted Instagram
their ad investment from display and video toward social ads during the past
year. ULTA quintupled its ad investment on TikTok from around $950K in
Q1 2022 to $5.4M in Q1 2023, while Sephora shift its ad budget to Facebook.

2M
Display & Video Facebook Instagram Snapchat TikTok

Q1 2022 22% 38% 23% 12% 5%

Q1 2023 9% 41% 17% 14% 19%

Q1 2022 31% 29% 25% 7% 8% $0 $100K $200K $300K $400K $500K $600K $700K

Ad Spending
Q1 2023 19% 36% 24% 10% 11%

0% 20% 40% 60% 80% 100%

9 | © 2023 Sensor Tower Inc. - All Rights Reserved

 Flip.Shop Leads in User Time
Spent with An Innovative
Shopping Experience
Average time spent per month in selected beauty apps, App Store,
Flip.shop 30
Q1 2023, Worldwide

Sephora 25
In Q1 2023, the top beauty app in user spending was Flip.shop, with users
spending an average of 30 minutes per month on the app. Sephora and
ULTA followed behind with an average of 25 and 21 minutes per user per
month, respectively. ULTA 21

Flip.shop, a shopping social network, takes a unique approach to

showcasing its products. Instead of relying solely on traditional product IPSY 15
listings, Flip.shop incorporates shopper or influencer-generated content in
the form of video reviews. In addition, Flip.shop is the only app among
top beauty apps with live show feature which provide an interactive and
Scentbird 13
immersive experience. These features could be the key factors in driving
user engagement.

Sally Beauty 11

0 5 10 15 20 25 30

Average time spent per user per month (min)

10 | © 2023 Sensor Tower Inc. - All Rights Reserved

 Fashion Retail
Apps: U.S.
11 | © 2023 Sensor Tower Inc. - All Rights Reserved
 Women’s Apparel Achieved the General Apparel
Athletic Apparel
Women's Apparel
Others
Footwear Children's Apparel Accessories

Largest Gains in Market Share

Proportion of installs among fashion apps subcategories, United States

Fashion apps saw a slight decline in overall downloads YoY. The general 2019 61% 22% 13% 2%
apparel and footwear subcategories saw their share of installs declined in
recent years. Both subcategories have seen a reduction in their share of
installs by 13 and 3 percent points, respectively.
2020 56% 27% 13% 2%
Meanwhile, the women’s apparel subcategory has bucked this trend,
growing faster than any other subcategory. Its market share increased by
13 percent points between 2019 and Q1 2023, a remarkable level of growth
and an indicator of a growing area of the fashion market.
2021 51% 32% 11% 3%
As more consumers turn to their smartphones for shopping, mobile-first
fashion apps have become increasingly popular. SHEIN, a mobile first app
for Women’s Apparel, has been in the lead among fashion apps since 2019,
and its share increased in the following years. 2022 53% 28% 12% 3%

Q1 2023 48% 35% 10% 2%

0% 20% 40% 60% 80% 100%

12 | © 2023 Sensor Tower Inc. - All Rights Reserved

 SHEIN Leads the Fashion
Industry by Retention 40%

U.S. Q1 2023 retention for the top women’s apparel apps, App Store
35%

SHEIN has not only led the category in downloads, but also in user retention. 30%
This had led to a larger and more engaged user based than its competitors.
Approximately 34 percent of SHEIN users open the app the day after it is
downloaded. This number drops to about 18 percent a week after it is
25%
downloaded and close to 8 percent 90 days after downloading the app.

The retention rates for its competitors, PrettyLittleThing, ASOS, Cider, and
20%
Chic Me are much lower, with these apps seeing a 90 day retention of less
than five percent.
15%
Part of SHEIN’s higher retention rate may be explained by its flash sales
strategy. Among top Women’s Apparel Apps, SHEIN is the only app that offers
daily flash sales. This unique feature provides a sense of exclusivity and
10% SHEIN
urgency that sets SHEIN apart from its competitors.

ASOS
5%
CIDER Chic Me

0% PrettyLittleThing

y1

y5

y9

9
y1

y1

y2

y2

y2

y3

y3

y4

y4

y4

y5

y5

y6

y6

y6

y7

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Da

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Da

Da

Da

Da

Da

Da

Da

Da

Da

Da

Da

Da

Da

Da

Da

Da

Da

Da
13 | © 2023 Sensor Tower Inc. - All Rights Reserved
 Women’s Apparel Apps Found 18-24 25-34 35-44 45-54 55+

Success Advertising on TikTok and

SnapChat to Reach Younger Users 100%
9% 11% 10% 7%
21%
Top 5 women’s apparel app install demographics, U.S., App Store 80%
19% 13% 16% 22%

60% 24% 26%

Q1 2022
Four of the top five Women’s Apparel apps saw YoY growth in the proportion 37% 46% 35%
of age 25-34 users that installed the app in the U.S. between Q1 2022 and 40%
Q1 2023 on the App Store. The only exception was Chic Me, which had the 34%
highest overall percentage of users aged 35-44 and saw YoY growth in the 48%
20%
30% 24% 32%
percentage between Q1 2022 and Q1 2023, up 11 percentage points. 15%
0%
Women’s Apparel apps that advertise on TikTok and Snapchat can
effectively reach and engage with a younger audience. ASOS, allocated 100%
around 25 percent of its social ad budget on these platforms, had 10% 8% 9%
9% 14%
73 percent of users aged under 35 in Q1 2023. Other apps such as SHEIN, 80% 16% 14% 16%
CIDER, PrettyLittleThing also invested on these two platforms, had at least 20%
60 percent of users aged under 35. 60% 37%

Q1 2023
33%
37% 49% 45%
Unlike the aforementioned apps, Chic Me, allocated the majority of its 40%
advertising spending on Facebook, had a lower percentage of users under
33%
the age of 35. This indicates that investing in advertising on Snapchat and 20% 37%
TikTok can be an effective strategy for women's apparel apps to reach and 27% 24% 25%
11%
engage with a younger audience. 0%

SHEIN CIDER ASOS PrettyLitterThing Chic Me

14 | © 2023 Sensor Tower Inc. - All Rights Reserved

 Retail Media
Networks: U.S.
15 | © 2023 Sensor Tower Inc. - All Rights Reserved
 U.S. Market Overview: Retail Media Network Advertising

Kroger
Walmart
600M
450M
2.5B
300M 586M
432M 506M
401M
150M
2.0B
0
Oct. 2022 Nov. 2022 Dec. 2022 Jan. 2023

1.5B
481 Million
2.2B 2.3B Average Monthly RMN Ad Impressions
1.0B
1.5B
1.2B
500M Albertsons
831M 870M
644M 612M 658M
359M 460M 534M 600M
253M
0 450M

2
22

22

22

22

22

23
22

300M

02
02

02

02

02

02
20

20

20

20

20

20
20

.2

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150M
Ja

Fe

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285M
M

O
269M
M

D
160M 171M
0

465%
Oct. 2022 Nov. 2022 Dec. 2022 Jan. 2023

Retail Media Network Ad Impressions Growth from Q1 2022 to Q4 2022 221 Million
Average Monthly RMN Ad Impressions

16 | © 2023 Sensor Tower Inc. - All Rights Reserved

 Advertisers Increasingly
Recognize the Value of RMNs Regular Digital Ad Impressions
80B
Top categories’ monthly ad impressions, RMNs v.s. regular digital ads
60B
CPG

From January 2022 to January 2023, the Consumer Package Goods (CPG),
40B
Computers & Consumer Electronics(CCE), and Home & Garden were the most Home & Garden
frequently advertised categories on the Walmart RMN, accounting for
20B
42 percent, 12 percent, and 8 percent of the total impressions, respectively.
CCE

The growth rate of impressions on the Walmart retail media network is 0

significantly outpacing that of regular digital ads. While regular digital ad

22

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02
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2

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l. 2

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2
impressions for each of the top 3 categories have risen by less than

n.

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M
20 percent YoY, CCE’s advertising impressions delivered by Walmart increased
821 percent in January 2023 compared to the same period last year. CPG and
Home & Garden retail media network impressions also doubled YoY.
Walmart RMN Ad Impressions
The triple-digit growth in Walmart RMN impressions indicates a shift in 800M
advertising strategies towards a greater focus on RMNs as advertisers
recognize their potential. 600M

Walmart RMNs Ad Impressions Growth (January 2022 v.s. January 2023) 400M CPG

640M 200M
4 % Home & Garden Home & Garden
3
480M +2 CCE 0 CCE
1%
320M 82

22

22

22

23
02

02

02

02

02

02

02

02
+

20

20

20

20

20
2

.2

l. 2

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% CPG

Ju
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4

M
M
160M 19
+

0
Jan. 2022 Jan. 2023

17 | © 2023 Sensor Tower Inc. - All Rights Reserved

 CCE Advertisers with Ad Spend Target Walmart

Invested in Walmart RMN Gain Amazon 100%

High Share of Voice Bose 100%

Fujifilm 100%

Share of impressions delivered by Walmart & Target, U.S., Beats 100%

Q1 2022 through Q3 2022 Epson 100%

Computers & Consumer Electronics (CCE) advertisers have prioritized Blink 100%

investment in the Target RMN over the Walmart RMN. More than half of the Ring 100%
Top 20 CCE advertisers spent 100 percent of their co-marketing ad budget on
Vizio 100%
the Target RMN.
Owala 100%
As a result, in these early days, investing in the Walmart RMN could OttLite 100%
potentially offer an opportunity to gain a higher share of voice for CCE
advertisers. With fewer advertisers competing for impressions on the Apple 100%

Walmart RMN, Google allocated the majority of its co-marketing ad spend Texas Instruments 99% 1%
there, resulting in the company leading in CCE with 42 percent SOV on
Roku 94% 6%
Walmart, followed by HP, with 26 percent SOV.
Acer 75% 25%

Computers & Consumer Electronics Advertiser’s Samsung 72% 28%

Share of Ad Impressions on Walmart RMN, Q1 2022 through Q3 2022
HP 28% 72%

Google 18% 82%

Other Star Brands 100%

32% Google
Philips 100%
42%
Conair 100%

HP 0% 25% 50% 75% 100%

26%

18 | © 2023 Sensor Tower Inc. - All Rights Reserved

 CCE Advertisers Capitalize
on Holiday Shopping Season
With RMNs
Cyber Power Systems
Top CCE Advertisers’ Monthly Ad Impressions on Walmart RMNs 250M

CCE advertisers ramped up their investment in Walmart RMNs during the

holiday season, with 1,422 percent growth in impressions in Q4 2022 200M
compared to the previous quarter. Among the top advertisers, Cyber Power
Systems emerged as the front-runner in RMN advertising, achieving
impressions of more than 200M each month between November and
December 2022. 150M

HP saw its investment peak in November for Black Friday and Cyber Monday
deals. HP strategically utilized video-type deal ads on Walmart RMNs to
capture attention and drive conversions, with nearly 100 percent of its RMNs 100M
ad impressions in November 2022 generated by these price based video ads.
Meanwhile, its competitor, Acer, pursued a different approach by focusing on HP
onsite display ads, which accounted for one-third of their total RMN ad
impressions during the same period. 50M

Acer

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19 | © 2023 Sensor Tower Inc. - All Rights Reserved
 Conclusion
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 © 2022 Sensor Tower Inc. - All Rights Reserved

Conclusion: Key Takeaways

• Chinese-Based Retail Apps have seen success in the U.S. retail market,
with Temu and SHEIN holding the top two positions in Q1 2023. Temu has
particularly shown impressive growth in downloads and surpassed the
marketplace giant, Amazon, in a short period.

• An analysis of top beauty apps ad spend and download data between January
2022 and April 2023 reveals a positive relationship between social ad investment
and new app downloads, while display and video ads has a relatively weak
association. This suggests that beauty apps may find more opportunity to grow
by advertising on social channels, particularly Facebook and Instagram.

• Women’s apparel apps found success advertising on TikTok and Snapchat to

reach younger users. SHEIN, CIDER, ASOS, and PrettyLittleThing invested in these
platforms, had a user base with at lease 60 percent of users aged under 35. In
contrast, Chic Me allocated the majority of its ad spending on Facebook and has
a lower percentage of users under the age 35.

• The growth rate of impressions on the Walmart retail media network is

significantly outpacing that of regular digital ads. Each of the top 3 categories
saw triple-digit growth in Walmart RMN impressions. This is a part of a broader
shift in strategy towards a greater focus on RMNs as advertisers recognize their
potential.

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