On Monday, Walmart cut its quarterly and full-year profit guidance, saying inflation is causing shoppers to spend more on food and necessities and less on clothing and electronics.
Due to the lack of demand on such items, Walmart is slashing their prices on consumer electronics and clothing in order to increase revenue quickly.
The company's stock fell more than 8% at market open on Tuesday. Other retail giants, such as Target and Amazon, also fell.
Retail giants are seeing strong back-to-school sales in the U.S. but are forecasting lower margins this second half of 2022.