Walmart is the second major big-box retailer to lower earnings guidance in recent weeks

Consumer spending on non-essentials is slowing amid the highest price surges for food and fuel in four decades

After financial markets closed Monday, Walmart lowered its second-quarter and full-year earnings guidance by 8% to 9%, and 11% to 13%, respectively

The Bentonville-based retail giant said its gross margin remains under pressure as inflationary prices continued to rise in the second quarter for food and consumables

Consolidated net sales growth for the second quarter and full year is expected to be about 7.5% and 4.5%, respectively

Target also recently lowered its earnings guidance as it would be marking down prices to move the inventory to ensure the retailer was in good shape for the holidays

Food inflation is affecting customers’ ability to spend on general merchandise categories and requiring more markdowns to reduce inventory, particularly apparel

Walmart also said it expects to see a 10-cent earnings boost from investments in and insurance settlements from its operations in Chile