STORES

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Over the last two weeks, the biggest big box retailers reported their Q2 earnings results. The combination of financial results, shareholder calls, and big corporate announcements offer a snapshot of the industry as it hit the halfway mark for the year.

Here is Retail Brew’s rundown of the biggest takeaways:

Turnaround time

Target’s ongoing turnaround efforts finally paid dividends in Q2. On the back of a 3.6% bump in store traffic, net sales were up 5.3% and comparable sales were up 3.8%. Target’s messaging around these gains is clear: Customers are responding to the store’s affordable value proposition. In 2026, the company cut prices on more than 10,000 items, and 95% of its school supplies are cheaper than last year.

“We’re proud of that price investment,” CEO Michael Fiddelke said during an earnings call. “We think it matters to consumers right now.”

A large one-time tariff refund from the federal government didn’t hurt either, contributing a $994 million pretax benefit to its P&L.

Thriving under pressure

Meanwhile, one of Target’s biggest rivals offered some words of warning. After reporting a 5.5% bump in revenue and a 23% increase in e-commerce sales, Walmart CFO John Rainey told shareholders the company is seeing “incremental pressure on the consumer relative to the beginning of the year with higher fuel prices.”

Keep reading here.—AV

      

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LABOR

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August brought with it retail CMOs on the move, newly created C-suite roles, and two exec departures at a company that’s getting a new CEO next month. Here’s the major C-suite news to know this month:

• After declining sales for Old Navy in the second quarter, Gap Inc named Michael Francis as the next CEO of Old Navy, succeeding Haio Barbeito. Francis, former CMO of Target, joined the retailer as chief customer officer in May and will take over the role on November 2.
• Home Depot CEO Ted Decker is temporarily stepping down from his role for medical reasons. CFO Richard McPhail and Senior EVP of US Store and Operations Ann-Marie Campbell will take over in the interim.
• Target named Chandhu Nair to the role of its first-ever chief AI officer, aiming to offer a “more coordinated approach” to AI for the retailer. Nair was previously SVP of stores, data, AI, and innovation at Lowe’s.
• Lululemon saw two C-suite departures the month before new CEO Heidi O’Neill is set to take over: Chief Strategy Officer Rachel Acheson left after 14 years with the company, and, days later, its first-ever chief AI and technology officer, Ranju Das, exited his role after less than a year.

Keep reading here.—EC

      

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RETAIL

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It’s the last week before Labor Day, the unofficial end of summer and the tail end of the back-to-school shopping season. How it all shook out for retailers is still hard to say. Q2 earnings are just about finished, and they only covered the early days of the season. And retail spending data for August is still a couple weeks out.

In the meantime, here’s what else is going on retail this week:

In earnings: On the earnings front, the big names have all reported Q2 results, but there are a few stragglers this week from across the industry. In a discounter double feature, Five Below and Ollie’s Bargain Outlet report on Wednesday. Then Victoria’s Secret and Lululemon report on Thursday for a nice cross-section of women’s apparel brands. The Campbell’s Company also reports on Thursday for a look at a major CPG brand.

Keep reading here.—AV

      

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swapping skus

Today’s top retail reads.

High steaks: President Trump permitting tariff-free beef imports for 90 days starting Sept. 1 may have little impact on beef prices. (CNN)

Northern exposure: How small Canadian brands and producers will be hit hardest by US tariffs. (the Wall Street Journal)

Wrong side of the bed: Why inflation has been particularly hard on mattress retailers. (TheStreet)

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