PC unit sales declined 20.1 percent year-over-year in Q3 2025 to 62.7 million units, according to IDC, as vendors and retailers struggle with excess inventory from early-year stockpiling ahead of price increases. All top five PC makers experienced sales declines, with HP hit hardest at 30.9 percent, while prices are expected to remain elevated despite modest promotional relief.
Retailers including Dollar General, Under Armour, BJ's Wholesale Club, and Lululemon are reducing product assortments (SKUs) to improve profitability and reduce discounting pressures as consumers cut spending amid high inflation. The strategy aims to stabilize sales, reduce unwanted inventory, and restore pricing power, though it limits consumer choice. While trimming SKUs can help smaller retailers refine offerings, larger brands like Lululemon risk diluting brand value if revenue grows too large.
Retail brands including Dollar General, Under Armour, Lululemon, and BJ's Wholesale Club are reducing their product assortments (SKUs) to improve profitability and reduce discounting. The strategy aims to stabilize sales, regain pricing power, and prevent excess inventory, though it limits consumer choice. Analysts note that while cutting SKUs can help, excessive assortment reduction alone won't solve underlying profitability challenges for struggling retailers.
Global PC shipments dropped 20% year-over-year in Q3 2026, with 15.8 million fewer units sold compared to 2025, driven primarily by soaring component costs as DRAM and SSD prices surged from 15% to 40% of total PC pricing due to AI data center demand. While elevated prices persist, OEM inventory stockpiles may create temporary promotional discounts before further price increases expected in coming quarters.