Cost of living: Walmart issues profit warning as price rises hit

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The soaring cost of food and fuel has caused Walmart to warn over its profits for the second time in as many months.

The company says it expects its profits to go down.

According to an expert, Walmart's announcement signals a warning bell for retail.

In after-hours trade in New York, the firm's stock market value plummeted almost 10%.

Walmart said in the past that it expected its profit to fall by 1%.

Doug McMillon said in a statement that the increasing levels of food and fuel inflation are affecting how customers spend.

The retailer planned to cut the prices of clothing as it was anticipating more pressure on general merchandise in the back half of the year, he said.

As food and fuel prices rise, shoppers are having to spend more of their income on essentials and have cut back on other spending.

Walmart's warning shows that other retailers are feeling the squeeze.

Walmart has buying power that's very rare. He said that even the mightiest are not immune to rising costs.

Amazon raised the price of its Prime service for UK customers on Monday due to increased inflation and operating costs. Prime has unlimited delivery of products.

Prices in the US and UK are going up at a faster rate than in the past.

Costs for households and businesses have gone up due to the war and supply chain issues.

Walmart said in its last earnings announcement that it had more than $60 billion worth of stock and that it would be cutting prices on some items.

It was the first time that the company trimmed its outlook. Its shares suffered their biggest one-day drop in 25 years.

Walmart's second quarter earnings are expected to be published on August 16.

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