Why Retailers Are Cutting 20% of Their Products – Is This the New Normal?
A staggering 20% of retailers are cutting stock keeping units, or SKUs, to boost profitability. This move, known as "shrink to grow," aims to reduce unwanted inventory and boost sales. Under Armour and Lululemon are both struggling with too many markdowns, which hurt profitability. Analysts say that when retailers acknowledge they want to shrink revenue, the goal is to regain pricing power. Some retailers, like Nike, have successfully managed their SKUs, but others, like Lululemon, still have a long way to go. As businesses navigate the challenges of high gas and food prices, trimming assortments has become a necessary evil. Want to stay ahead of the curve in the world of finance? Subscribe to our channel to get the latest insights and expert analysis.
Tags/Hashtags: #retailers #finance #skus #lululemon
Leave a Reply