Business · Companies · 1 day ago
Retailers cut product ranges to reduce discounting and improve profits
Several retailers are reducing the number of products they offer, a measure tracked as stock keeping units, or SKUs.
Dollar General, Under Armour, BJ’s Wholesale Club and Lululemon have all announced cuts, while Under Armour and BJ’s also plan further reductions.
High gas and food prices have led shoppers to spend less, adding pressure on retailers to improve profitability.
When products do not sell, companies may discount them, which can weaken profits and a brand’s image.
A smaller range can reduce unwanted stock and help retailers sell more at full price, but it also gives customers fewer choices.
Under Armour’s operating income turned negative in fiscal 2025 and 2026, while Lululemon’s sales rose from fiscal 2024 to 2025 but its operating profit fell.
The companies say they are focusing on fewer products, but analysts caution that cutting product options alone may not solve their problems.
Retailers including Dollar General, Under Armour, BJ’s Wholesale Club and Lululemon are reducing the number of products they sell.
The companies say or indicate that smaller product ranges can help improve profitability and reduce unwanted inventory.
The cuts come as shoppers reduce spending amid high gas and food prices.
Fewer products may mean less choice for consumers, but retailers are accepting that trade-off.
Analyst Simeon Siegel said reducing product ranges alone may not solve Lululemon’s challenges.
- Who
- Retailers including Dollar General, Under Armour, BJ’s Wholesale Club and Lululemon.
- What
- They are cutting the number of products they sell to reduce markdowns and improve profitability.
- When
- The companies discussed cuts during 2026; the article was published October 10, 2026.
- Where
- The cuts include Lululemon’s North American product range. Other locations are not stated.
- Why
- To reduce unwanted inventory and discounting, improve profitability and regain pricing power.
This story does not have two clearly opposing sides.
If you have zero discounting, you're not taking enough fashion risk. But discounting needs to be fixing mistakes. It needs to be done quickly.
Today, we're managing for quality. Fewer products with greater purpose, tighter execution and a clear reason to buy.
We will sell so much more of so many less products at a much higher full retail price.
Selling fewer options is not the same as selling fewer things.
Dollar General said it had trimmed 1,500 SKUs.
Under Armour said it had shrunk SKUs by 25% over the past few years and planned another 25% cut.
BJ’s Wholesale Club said it planned to reduce roughly 20% of its SKUs.
Lululemon said it had cut North American SKUs by 15%.
- Dollar General
- Trimmed 1,500 SKUs in March
- Under Armour
- Plans to cut another 25% of SKUs after shrinking them by 25%
- BJ’s Wholesale Club
- Plans to reduce roughly 20% of SKUs
- Lululemon
- Cut North American SKUs by 15%
- Lululemon
- Reported $6.3 billion in U.S. sales in fiscal 2025
Sources
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