Inflation is weighing on the results of US consumer companies.

The American supermarket chain Target has published quarterly results marked by a sharp decline in its earnings and margins. And the punishment was immediate, with a stock price down 25% since this episode.

The case of Target is not isolated. Walmart, the world's largest retailer with a turnover of more than 500 billion dollars, announced during its quarterly results a 25% drop in its profit for the period, while announcing a drop in its profit forecasts for the whole year, due to the rise in costs, energy and labor. The distributor's stock price was down more than 15%.

These declines seem severe for these leading companies in their field, especially since the main analysts maintain their positive opinion on the shares (Credit Suisse, UBS, Guggenheim..).

In addition, the sector is modernizing following the example of Walmart, which has signed a partnership with Symbotic, a specialized AI-powered supply chain company. This business agreement will implement a robotics platform in Walmart's 42 regional distribution centers over the next few years. The agreement is expected to help the company address the supply chain issues it is suffering from.

Walmart Inc, is the world's largest retailer with a market share of about 20%.

The recent partnership with Symbotic will allow the American giant to address supply chain issues and the Symbotic system will allow the company to respond faster to store orders, increase inventory accuracy and increase the capacity to receive and ship goods to stores.

With an average price target of USD 155.30, the consensus is Buy.

Target Corp operates low-cost general merchandise stores. Its operations include discount stores (of merchandise and groceries) and fully integrated online shopping services.

Target also offers credit via credit cards under its own brand.

With an average price target of USD202.19, the consensus is to accumulate.