Rising import, transport and warehousing costs are prompting US retailers to cut
product assortments to lower costs and simplify supply chains, accelerating a
trend that followed earlier SKU expansion to meet consumer demand. Over the past
18 months new tariffs, surging fuel costs and demand uncertainty have
intensified margin pressure. A recent UK professional-services survey of US
companies found roughly one-quarter plan to reduce the range of products sold in
the next six months. Helen of Troy told shareholders it has implemented measures
including assortment rationalization. Under Armor has cut more than 25% of its
SKUs over the past two years and reallocated resources toward best sellers.
