It seems as though Walmart has missed the boat again. While the retail giant remains to be one of the most popular places people go to buy basic items such food, clothing, electronics, and more, they’ve missed a few steps as of late.
At the close of quarter two, Walmart announced that it would be falling short of its revenue expectations.
CEO Doug McMillon explained why on Monday: “The increasing levels of food and fuel inflation are affecting how customers spend, and while we’ve made good progress clearing hardline categories, apparel in Walmart U.S. is requiring more markdown dollars.”
He would later go on to add that the company is “now anticipating more pressure on general merchandise in the back half.”
This sudden dip doesn’t come out of left field. Both Walmart and Target showed reason for worry back in May when they flagged worried customers as well as bloated inventories.
If Walmart is struggling, it doesn’t necessarily guarantee that smaller companies will struggle too. However, it didn’t exactly bode well for certain retailers such as Bath & Body Works and Weber.
In fact, Weber had this to say on the topic in a Monday morning press release: “Net Sales performance was affected by slower retail traffic, both in-store and online, in all key markets, as well as continued foreign currency devaluations that impact our reported results.”