diff --git a/packages/template-retail-react-app/CHANGELOG.md b/packages/template-retail-react-app/CHANGELOG.md
index b0c6e67541..afcbab3e98 100644
--- a/packages/template-retail-react-app/CHANGELOG.md
+++ b/packages/template-retail-react-app/CHANGELOG.md
@@ -1,3 +1,6 @@
+## v2.8.0-dev (Mar 03, 2023)
+- Make `mergeBasket` conditional more robust [#1048](https://github.com/SalesforceCommerceCloud/pwa-kit/pull/1048)
+
 ## v2.7.0 (Mar 03, 2023)
 - Add Page Designer ImageTile component [#967](https://github.com/SalesforceCommerceCloud/pwa-kit/pull/967)
 - Add Page Designer ImageWithText component [#991](https://github.com/SalesforceCommerceCloud/pwa-kit/pull/991)
diff --git a/packages/template-retail-react-app/app/commerce-api/hooks/useCustomer.js b/packages/template-retail-react-app/app/commerce-api/hooks/useCustomer.js
index fe0cfe54fd..ffd95fef97 100644
--- a/packages/template-retail-react-app/app/commerce-api/hooks/useCustomer.js
+++ b/packages/template-retail-react-app/app/commerce-api/hooks/useCustomer.js
@@ -10,6 +10,12 @@ import {useCommerceAPI, CustomerContext} from '../contexts'
 
 const AuthTypes = Object.freeze({GUEST: 'guest', REGISTERED: 'registered'})
 
+// This value represents the max age in milliseconds a customer can be before they are
+// no longer considered a "new" customer.
+// E.g. If a customers creation date is older than 2 seconds it will no longer be considered
+// a new customer.
+const NEW_CUSTOMER_MAX_AGE = 2 * 1000 // 2 seconds in milliseconds
+
 export default function useCustomer() {
     const api = useCommerceAPI()
     const {customer, setCustomer} = useContext(CustomerContext)
@@ -39,6 +45,16 @@ export default function useCustomer() {
                 return customer?.authType === AuthTypes.GUEST
             },
 
+            /**
+             * Returns if this customer is newly registered.
+             */
+            get isNew() {
+                if (!customer || customer.authType !== 'registered') return false
+                const lastLoginTimeStamp = Date.parse(customer.lastLoginTime)
+                const creationTimeStamp = Date.parse(customer.creationDate)
+                return lastLoginTimeStamp - creationTimeStamp < NEW_CUSTOMER_MAX_AGE
+            },
+
             /** Returns the customer's saved addresses with the 'preferred' address in the first index */
             get addresses() {
                 // TODO: This performs array manipulation every time it is accessed; should it be
diff --git a/packages/template-retail-react-app/app/commerce-api/hooks/useShopper.js b/packages/template-retail-react-app/app/commerce-api/hooks/useShopper.js
index 2bee91a771..7cafb76857 100644
--- a/packages/template-retail-react-app/app/commerce-api/hooks/useShopper.js
+++ b/packages/template-retail-react-app/app/commerce-api/hooks/useShopper.js
@@ -4,7 +4,7 @@
  * SPDX-License-Identifier: BSD-3-Clause
  * For full license text, see the LICENSE file in the repo root or https://opensource.org/licenses/BSD-3-Clause
  */
-import {useEffect} from 'react'
+import {useEffect, useRef} from 'react'
 import useBasket from './useBasket'
 import useCustomer from './useCustomer'
 
@@ -17,6 +17,7 @@ const useShopper = (opts = {}) => {
     const {currency} = opts
     const customer = useCustomer()
     const basket = useBasket({currency})
+    const prevAuthType = useRef()
 
     // Create or restore the user session upon mounting
     useEffect(() => {
@@ -58,11 +59,22 @@ const useShopper = (opts = {}) => {
         }
     }, [customer.authType, basket.loaded])
 
-    // Call merge basket whenever user type changes from guest to registered
+    // Call merge basket.
     useEffect(() => {
-        if (customer.authType === 'registered') {
+        // Only call merge when there are items in the guest basket and you are
+        // a returning customer.
+        const shouldMerge =
+            customer.authType === 'registered' &&
+            prevAuthType.current === 'guest' &&
+            !customer.isNew &&
+            basket.itemCount > 0
+
+        if (shouldMerge) {
             basket.mergeBasket()
         }
+
+        // Update the current `authType` value.
+        prevAuthType.current = customer.authType
     }, [customer.authType])
 
     useEffect(() => {