The news: Choosy consumers haven’t stopped spending, but they are penalizing retailers that misjudge what shoppers want.

Dick’s Sporting Goods, TJX, and Gap attributed weakness in Q2 to poorly calibrated or unpopular goods, while executives pointed to better sales when price, products, and style were right.

Hits and misses:

Dick’s Sporting Goods said its Foot Locker business was especially exposed to legacy shoe and clothing styles that consumers considered outdated; even some new products underperformed. Foot Locker’s pro forma comparable sales slumped 3.6% versus a 4.9% rise at the namesake brand, and excess inventory led to heavier promotions that hurt profitability.

Comparable sales at TJX’s Marmaxx, which includes TJ Maxx and Marshall’s, slowed to 1% in Q2 from 3% a year earlier. CEO Ernie Herrman called the weakness “self-inflicted,” as the company didn’t put apparel merchandise in adequate quantities in stores to match demand.

Gap said much of Old Navy’s 4% comparable sales decline in Q2 stemmed from misjudging its styles and pricing for summer dresses, shorts, and swimwear, as well as ineffective marketing that failed to drive traffic. The contrast within the company was stark: Comparable sales at the Gap brand rose 10%, driven by fresh looks in denim, fleece, and kids and baby. Gap CEO Richard Dickson said that when consumers find products they like at prices deemed fair, they “show up and it converts.”

Bringing in goods such as home and cosmetics products from new vendors paid off for Ross Stores, which posted a 10% rise in Q2 comparable sales.

Implications for retailers: Merchandise that is stale or misses the mark is not a new retail issue. But the current cautious spending environment gives retailers less room for error.

Merchandising accuracy is critical to sales, margins, and market share. Retailers that misread demand will lose on all measures.

Winning requires retailers to respond faster to sales trends, order clothing styles conservatively until demand is proven, maintain flexible supplier relationships, and rapidly replenish products that catch on. In a choosy consumer environment, assortment agility is a competitive advantage.

Go further: Read our Live Earnings Report: Retail & Ecommerce Tracker Q2 2026 to see how the biggest retailers are adjusting as customers become more selective.

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