Walmart slashes prices for apparel products: Consumers are unwilling to spend money amid inflation

As American consumers tighten their belts, major retail giants are also having a hard time. Walmart announced on Monday that it will significantly reduce the prices of its clothing products to clear out excess inventory.

Walmart said that due to high inflationary pressures and soaring oil prices, consumers are now only willing to pay for necessities such as food and gasoline. Walmart previously announced a reduction in its profit forecast for fiscal 2023.

“Rising food and fuel prices are impacting how customers spend their money, and while our home and outdoor products are selling well, we need to lower prices in our apparel category to stimulate spending,” Walmart CEO Doug McMillon said in a statement .

He added: "We expect general merchandise to face increased pressure in the second half of the year; however, we are encouraged by the improvement in our school supplies sales."

Walmart's CEO warned of the risk of food shortages in the future and condemned the Biden administration's policies as "hurting the American people."

Biden said before the GDP data was released that the United States would not fall into recession: "God bless."

Walmart shares fell sharply on Tuesday after the company cut its profit outlook. The company told shareholders it expects earnings per share growth to fall to around 8% or 9% in the second quarter and to remain in the 11% to 13% range in fiscal 2023.

Walmart's struggles seem to foreshadow what's to come for the U.S. economy, and the Biden administration has already taken steps to address the problem.

White House press secretary Karine Jean-Pierre faced criticism on Monday for attempting to change the long-standing definition of a recession during her daily briefing, which economists define as two consecutive quarters of negative U.S. gross domestic product growth.

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