Tariffs Are Making Retailers Rethink How Much Choice They Give Shoppers

Retailers are reconsidering the level of product variety they offer to customers in the current landscape of tariffs, supply chain disruptions, and cautious consumer behavior, according to a report by The Wall Street Journal. Companies are reducing their product assortments to lower the expenses associated with importing, shipping, and storing goods.

Under Armour, for instance, has eliminated over a quarter of its product line over the past two years, while Helen of Troy has streamlined its offerings to mitigate the effects of increased U.S. tariffs. This shift is a departure from the eCommerce-driven era of inventory, where retailers could provide a seemingly limitless array of colors, sizes, and styles without considering the physical constraints of store shelves.

The pandemic exposed the vulnerabilities of this model, as companies grappled with both shortages and excess inventory. Tariffs, higher fuel costs, and unpredictable demand have further exacerbated the situation. Bobby Djavaheri, vice president of Yedi Houseware, told the Journal that the volatility experienced in recent years has demonstrated that offering more variety does not always translate to increased opportunities.

About one-quarter of U.S. companies surveyed by the British Standards Institution anticipate reducing the range of products they sell within the next six months. For retailers, a smaller product selection can result in fewer suppliers, fewer shipments, and simpler tariff calculations. Companies are finding it "simpler and cheaper" to work with a narrower supplier base and less intricate product lines, as Tony Pelli of BSI explained to the Journal.

Retailers are also exploring alternative methods to protect consumers from the price hikes caused by tariffs. Burlington is utilizing a $55 million tariff refund to reduce prices, joining other major retailers such as Walmart, Tractor Supply, and e.l.f. Beauty. e.l.f. discovered that a $4 price reduction on its Halo Glow Skin Tint led to a 40% increase in unit sales and has since permanently lowered prices on approximately 10% of its products.

However, tariffs are not entirely to blame for the challenges consumers face in affording essential items like groceries and utilities. According to economists at the Boston Fed, tariffs contributed only 0.5 percentage points to core PCE inflation in 2025, while productivity gains helped offset some of their impact.