LONDON (Reuters] – European retail stock fell sharply on Tuesday due to a jittery U.S. retailer Target Corp (NYSE: ) reduces its quarterly margin forecast, for the second consecutive month.

Target stated that it will have to give deeper discounts and reduce stocking discretionary products, because inflation is affecting spending. This adds to the grim global consumer outlook.

Europe’s retail stocks index was at its lowest point in more than one week, falling 2.9% to 1229 GMT.

European retail shares fell, weighing on the wider market. The benchmark index lost 0.7% that day.

The latest data shows that headline consumer price inflation is at an alarming 8.3% in America, 9% in Britain, and 8.1% within the 19-country Euro zone. This means the future outlook for shoppers’ spending looks grim.

Retail stocks in Britain were already markedly down in the wake of industry data showing that shoppers had cut back their spending in May, the largest drop since early 2021 when the country was under coronavirus lockdown.

Shares in UK clothing and food retailer Marks & Spencer (OTC:) were down 3.8%, clothing retailer Next was down 2.8%, home improvement retailer Kingfisher (LON;) fell 4.2%, while supermarket Tesco (OTC’:) dropped 1.4%.