Q2 in review: Target cuts prices and BJ’s cuts SKUs

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.”

Still, the retail giant raised its full-year outlook, which Rainey said reflects the “continued prioritization of the remaining tariff refunds in the customer experience and price investments in the second half.” Those price investments include 11,000 rollbacks in Q2, up from 7,200 in Q1.

“We’re investing heavily in price because customers need us to and because we believe it drives market share gains over time,” CEO John Furner said.

Another big priority for Walmart in Q2 was faster delivery. Fast delivery—or deliveries that come in under 30 minutes—grew 48% for the quarter. “Speed matters,” Furner said, and it’s not just a fulfillment metric. The company now sees faster deliveries as an “acquisition strategy,” he explained, as customers choose to shop more frequently and in new categories such as meal solutions.

Fewer SKUs

After reporting a strong second quarter, with 11.9% YoY comparable sales gains and 9.9% YoY growth in membership fees, BJ’s Wholesale revealed it was cutting back on the number of items available in its sprawling warehouse stores. CEO Robert Eddy told shareholders that past attempts to cut SKUs weren’t executed properly, leaving its stores “over SKUed.” To address this “long-standing opportunity,” as he put it, BJ’s is reducing 20% of items over the next couple of years. The current average SKU count per store is 7,500; the goal is to bring that down to about 6,000.

“What we’re doing now is removing unnecessary choice,” Eddy said.

On the wrong foot

While comparable store sales were up 4.9% for the quarter, Dick’s Sporting Goods shared some disconcerting news when it released its Q2 earnings: The chain lowered its full-year outlook for its Foot Locker business, which it purchased almost a year ago, to between -2% and 0%, as the footwear market faces global headwinds.

Executive Chair Edward Stack said during the company’s earnings call that its business in EMEA (Europe, the Middle East, and Africa) was more challenging than expected due to aggressive promotional activity, an excess of inventory, and a cautious consumer—the latter of which is weighing on Dick’s overall.

Best of the best

Coming at the tail end of a busy two weeks of earnings, Best Buy’s results showed a big box retailer in a strong position relative to recent quarters. The electronics outlet saw a 4.1% bump in comparable sales and raised its outlook for the year, as steady demand across categories fueled the gains. In her last earnings call before stepping down in October, CEO Corie Barry noted that while customers are still attracted to value and promotions, they are willing to shell out for the right product.

“Importantly, while customers continue to be thoughtful about big ticket purchases, they are willing to spend on high price point products when they need to or when there is technology innovation,” she said.