Walmart’s market value dropped by $36 billion after shares sank by 10 percent on Tuesday morning — a day after the retail giant’s prediction that profits would fall as surging prices for food and fuel prompted customers to cut back on discretionary purchases.

The $361 billion retailer saw its share price fall from $132 to $121 as the market opened on Tuesday, with it’s market value dropping to $325 billion as shares are still down by more than 7.7 percent after a small rebound by the afternoon.

Just one day prior, Walmart, a bellwether for the retail sector that caters to cost-conscious shoppers, said its full-year profit would decline 11 to 13 percent, compared to the one percent fall it previously forecasted.

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Neil Saunders, managing director of retail at GlobalData, called the warning a ‘cause for concern’ for Walmart that highlighted the pressure on retailers across the board.

‘As the country’s largest retailer, Walmart is a bellwether for the entire sector,’ he said.

‘Its downgrading of second quarter and full fiscal guidance is a cause for concern and highlights the pressure that all retailers are currently under.’

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