Disturbing data from the Walmart network

Customers are reducing their spending on clothing and electronics, focusing on basic necessities, including food, the Walmart store management company announced yesterday. At the same time, it reduced its expectations regarding the estimated profit both on a quarterly and annual basis.

Walmart has over 10. brick-and-mortar stores and numerous e-commerce sites, which are visited by nearly 230 million customers from dozens of countries every week. With fiscal year revenues of 2022 of $ 573 billion, the company employs approximately 2,3 million people worldwide.

Consumer sentiment

The data of the giant chain seem to be reliable and can reflect a change in the market trend and consumer attitudes. Rising inflation and the unrest caused by Russia's attack on Ukraine seem to be contributing to the deteriorating attitude of shoppers. This was confirmed by declines in indices showing consumer sentiment on both sides of the Atlantic. Restraining demand may, in turn, foreshadow stagflation or recession.

For Walmart shareholders, the publication of sales data and the cut in estimated profits could directly translate into losses. The company's share price yesterday fell by around 10%, dragging other US-listed and retail-oriented companies down with it. Target lost over 5 percent, Macy's over 4%, a Amazon over 3%

Soon the results will be published by the following companies: A, Microsoft, Visa, Coca-Cola and McDonald's.