According to CNBC, retailers including Dollar General, Under Armour, BJ's Wholesale Club and Lululemon are cutting the number of stock keeping units, or SKUs, they sell as they try to clean up balance sheets, improve profitability and satisfy investors. Dollar General said in March it trimmed 1,500 SKUs, Under Armour said in August it had reduced SKUs by 25% over the past few years and plans to cut another 25%, BJ's said it plans to reduce roughly 20% of SKUs, and Lululemon said in September it cut North America SKUs by 15%.

The article said the strategy can help retailers stabilize sales, reduce unwanted inventory and, in some cases, restore pricing power, but it can also leave shoppers with fewer choices. Under Armour's operating income turned negative in fiscal 2025 and 2026, while Lululemon said its sales rose by more than $500 million from fiscal 2024 to 2025 even as operating profit fell by about $300 million. BJ's CEO Robert Eddy said cutting choice can shift sales into remaining products and create room for new categories, while Dollar General CEO Todd Vasos said continued SKU rationalization is likely to be more surgical going forward.