Costs rise at Walmart

WALMART has downgraded its annual profit guidance and warned rampant inflation is increasing costs more rapidly than the chain had anticipated.

The US retailer cited soaring food and fuel prices as its earnings fell by a quarter. Shares dropped $15.60, or 10.5pc, to $132.62 in new York yesterday.

Chief executive Doug

McMillon said inflation ‘created more pressure’ on margins and costs than expected. ‘We’re adjusting and will balance the needs of our customers for value with the need to deliver profit growth for our future,’ he added.

Founded in 1962, Walmart is the world’s biggest retailer by sales, having generated revenue of £459bn last year.