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Retailers Trim Product Lines to Cut Supply Chain Costs

Wall Street Journal US Business •
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Companies including Under Armour and Helen of Troy are trimming product lineups to focus on bestsellers as they grapple with higher costs to import, move and store goods. Retailers are slimming down product lines amid new U.S. tariffs and surging transportation costs. Businesses from consumer-products maker Helen of Troy to athletic-apparel retailer Under Armour are narrowing the selection of products they sell.

The strategy to focus on the most popular merchandise can help cut costs and simplify sprawling supply chains. Yedi Houseware vice president Bobby Djavaheri noted that carrying more variety does not necessarily mean more opportunity, stating a tighter, more carefully curated assortment allows for more efficient buying and inventory risk management. Yedi imports all merchandise from China, with the Trump administration's tariff approach over the past 18 months leading the company to pare back orders.

Helen of Troy, which sells Hydro Flask water bottles and OXO kitchenware, said it has taken measures including trimming product selection to reduce tariff impact. Under Armour has cut more than 25% of its products over the past two years and is investing more in bestselling items. CEO Kevin Plank stated selling more of fewer things at higher full-retail prices reflects their strategy.

Smaller businesses like zestt organics are also deciding to put aside new product development due to tariff and shipping unknowns, prioritizing risk reduction over expansion. About a quarter of U.S. companies surveyed by British Standards Institution plan to reduce product range over the next six months, viewing a smaller base of suppliers as simpler and cheaper.