Walmart said it expected net sales to rise 3.75% to 4.75% this financial year, compared with its previous forecast of a 3% to 4% increase. The world’s biggest retailer should be doing well in this landscape, as it has the scale and supplier network to deliver the most competitive prices. It also has some high-margin businesses, including its advertising, marketplace and Amazon Prime-like membership program Walmart Plus. But it’s a significant caution signal that Walmart left its estimate of full-year adjusted operating income unchanged. The mega retailer, like smaller rivals, is also grappling with tariff-driven inflation. At this point, the impact has been limited — prices rose 1% in the US during the second quarter, but that costs were increasing each week as Walmart received new stocks of imported goods.

Underlining the importance of value, off-price retailer TJX raised its full-year earnings guidance. TJX, which offers lower-priced items from popular brands, has been able to take advantage of stores looking to clear out piles of unsold goods to, for example, provide a bigger selection of premium products from Gucci and other luxury labels. Consumers are not just buying from discount chains — but no matter where they shop, they’re looking for markdowns and watching costs. Americans shopped for back-to-school and other essential items during July’s discount frenzy, led by Amazon.com Inc.’s Prime Day. And Home Depot’s second-quarter results signalled a return to growth in home improvement, though spending was driven by smaller purchases, such as lighting and garden supplies.

Even as shoppers are focused on the best deals, there is room for retailers to surprise and delight their customers. Both Walmart and Target said stylish home furnishings and clothing sold well. The key to winning the back-to-school and holiday seasons is to combine that kind of sparkle with undeniable value. On that front, retailers could do worse than look to Ralph Lauren. The company has been polishing its image, improving the style and quality of its products. As it has done so, European luxury brands have aggressively raised prices, making the US retailer’s designs, such as the Polo Ralph Lauren ID bag, not only desirable, but also relatively affordable.