Retailers are slimming down product lines as they grapple with higher costs to import, move and store goods. Companies from Helen of Troy to Under Armour are narrowing product selections to cut costs and simplify supply chains in the face of rising transportation costs and tariffs. The strategy reverses a yearslong expansion of product selection to meet consumer demand for new colors, styles and sizes that was turbocharged by endless options available on e-commerce sites. Some retailers began abandoning certain product lines after grappling with product shortages and overstocks during the pandemic. The efforts accelerated over the past 18 months as new levies, surging fuel costs and uncertain consumer demand weighed on margins. About a quarter of U.S. companies recently surveyed by British Standards Institution said they plan to reduce the range of products they sell over the next six months. Helen of Troy, which sells products such as OXO kitchenware, said at a recent shareholder meeting it has taken measures including trimming its product selection to reduce the impact of higher U.S. tariffs. Under Armour has cut more than 25% of its products over the past two years and is investing more in its bestselling items.

Companies are using tariff refund windfalls to cut prices and absorb higher supply-chain costs. E.l.f. Beauty, Walmart and Tractor Supply are among retailers appealing to cost-conscious shoppers by rolling back price increases as consumers grapple with inflation. Walmart has rolled back prices on 11,000 items, including ground beef, funding the price cuts with refunds worth $2.9 billion. E.l.f., which has received roughly $50 million in refunds so far, cut prices on about 10% of its lineup. Appliance maker Shark Ninja, which expects to receive refunds totaling $247 million, isn't raising prices this year. Tractor Supply is using tariff refunds to absorb rising freight and fuel costs.