Stock prices fell collectively, and the market value of US retail giants has shrunk!

It is learned that according to the latest data from GlobalData, the world's top 25 retailers by market value lost US$535 billion in cumulative valuation in the second quarter of 2022, of which US retailers lost more than 65% of their valuation.

GlobalData observed that the six largest US retail giants, including Amazon, Walmart, Home Depot, Nike, Costco and Target, each lost more than $25 billion in valuation.

Ragupathy Jayaraman, Business Fundamentals Analyst at GlobalData, commented: “Due to the strict lockdown caused by the COVID-19 pandemic, retail companies were able to strengthen their e-commerce businesses. In addition, home improvement and pharmaceutical retailers also benefited from the COVID-19 pandemic. However, the market is returning to normalcy as more consumers are visiting physical stores.”

Additionally, surging inflationary pressures and the Federal Reserve’s rate hikes led to a widespread sell-off in stocks during the second quarter. Retailers are vulnerable to volatile economic conditions as price increases directly impact consumer shopping habits. The ongoing Russia-Ukraine conflict also had a huge impact on their stance due to rising energy prices.

Jayaraman added: “Amazon was the only retailer among the top 25 to lose more than $100 billion in valuation in the second quarter.”

Although Amazon benefited greatly from the COVID-19 pandemic, which greatly improved its stock performance in 2020 and 2021, inflationary pressures and market declines in 2022 have sent the company's stock back to pre-pandemic levels.

Amazon also reported its first quarterly loss in seven years in the first quarter of this year. Walmart, Lowe's, Nike and Costco all reported declines of more than 20% in the same comparative period.

In contrast, Chinese retail giants Alibaba, Pinduoduo and JD.com reported market capitalization growth this cycle, with Alibaba and Pinduoduo's valuations increasing by more than 35%.

Editor✎ Ashley/

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