According to BBC, US retail giant Wal -Mart has issued a profit warning for the second time since May, because the cost of food and fuel has soared, which has a huge impact on consumers’ purchasing power. The company said that this year’s profit is expected to decrease by as much as 13%. The company’s stock market value has fallen by nearly 10%, and the stocks of competitors Amazon and Tajit have also fallen sharply.
His CEO Doug McMillon stated in a statement after the US market closed on Monday: “The rise in the level of food and fuel inflation is affecting the consumption method of consumers,” he added that it plans to reduce the price of clothing because “it is expected to be under this year. Non -living necessities will face greater pressure. ”
Data Analysis Company GlobalData Retail Business Managing Director Managing Directors said that with the rise in food and fuel prices, consumers had to spend more income on necessities and reduce other expenses. “Wal -Mart has a strong purchasing power, which helps it to alleviate some inflation, but as today’s announcement shows, even industry giants cannot avoid the impact of rising costs.”
Also on Monday, due to “inflation and increased operating costs”, online retail giants Amazon for the first time has increased the prime service prices of British and many European station users for the first time since 2014.
Driven by the rise in gasoline and food costs, prices in the United States and Britain are rising at the fastest speed in four years. The epidemic and Ukrainian war and supply chain issues have pushed up the daily costs of family and enterprises. Wal -Mart said in the last financial report in May that he promised to “radical” price reductions for certain products. The company also lowered its profit expectations for the first time, which led to the largest single -day decline since 1987.