Why Retailers Are Cutting Their Product Assortments

Retailers and brands are reducing the number of products they carry, but the reasons differ across businesses. I explain how assortment cuts relate to discounting, margins, inventory management, and brand positioning, using examples including Lululemon, Nike, Dollar General, BJ’s, and Under Armour.

■ Brand strategy and profitability
- How unsold products and markdowns can affect margins and brand perception
- Lululemon, Nike, and Under Armour’s approaches to reducing SKUs and refining product portfolios
■ Retail operations and trade-offs
- How Dollar General and BJ’s use SKU reductions to manage inventory and shelf space
- Why assortment cuts can affect product availability and customer choice

For viewers interested in retail, brand management, or inventory strategy, this offers a concise overview of the trade-offs companies weigh when narrowing their assortments. It can help you identify the factors to consider when evaluating a retailer’s product range, without offering company-specific investment advice.