Tariffs Are Making Retailers Rethink How Much Choice They Give Shoppers

Retailers are discovering that in a world of tariffs, supply chain uncertainty and cautious consumers, more choice can come with a surprisingly high price.

Companies are shrinking their product assortments to reduce the cost and complexity of importing, transporting and storing merchandise, The Wall Street Journal reported Thursday (Sept. 3). Under Armour has cut more than 25% of its products over the past two years, while consumer products company Helen of Troy said it has trimmed its selection to limit the impact of higher U.S. tariffs.

The strategy marks a reversal from the eCommerce-driven era of inventory, when retailers could offer seemingly endless combinations of colors, sizes and styles without worrying about the physical limitations of store shelves. The pandemic exposed the risks of that model, as companies struggled simultaneously with shortages and excess inventory. Tariffs, higher fuel costs and uncertain demand have since added another layer of pressure.

“The volatility of the last several years has reinforced that carrying more [variety] does not necessarily mean more opportunity,” Bobby Djavaheri, vice president of Yedi Houseware, told the Journal.

About one-quarter of U.S. companies surveyed by the British Standards Institution said they expect to reduce the range of products they sell over the next six months, according to the news outlet. For retailers, fewer products can mean fewer suppliers, fewer shipments and fewer tariff calculations. Tony Pelli of BSI told the Journal that companies are finding it “simpler and cheaper” to work with a smaller supplier base and less complicated product lines.

The shift comes as retailers search for other ways to protect consumers from tariff-driven price increases. Burlington is using a $55 million tariff refund to lower prices, joining Walmart, Tractor Supply and e.l.f. Beauty. e.l.f. found that a $4 reduction on its Halo Glow Skin Tint increased unit sales 40% and has since permanently lowered prices on roughly 10% of its products.

Yet tariffs are not necessarily what’s making it so hard for consumers to afford essentials such as groceries and utility bills. Boston Fed economists estimated tariffs contributed only 0.5 percentage points to core PCE inflation in 2025, while productivity gains offset some of their impact.