Walmart profit warning is sending chills through the retail universe, but those selling food and essentials should be better insulated against a harsh retail winter.
America’s biggest retailer on Monday telegraphed that double-digit food inflation is pinching consumer wallets more than it previously expected. The company said it now expects operating income to fall 13% to 14% in the current quarter compared with a year earlier, a notable decline from its previous forecast of flat to down 1%. The drop is mostly due to declining demand and discounting for general merchandise such as apparel, which the retailer overstocked on.