Retailer Selloff Leaves Covid Slump in the Dust as Rout Widens

The darkest days of the pandemic might be long gone, but for chain stores and other merchants, it’s March 2020 all over again. And it’s getting worse. A selloff in Target Corp. and Walmart Inc. shares has pushed the SPDR S&P Retail exchange-traded fund (ticker XRT) down 44% from its November record high, outpacing the fund’s 41% rout during the pandemic. The $484 million ETF’s 16% slump in May would be the second-worst month since 2009, according to data compiled by Bloomberg. Rising costs on everything from transportation to labor are eating into the profit margins of some of America’s best known retailers, stoking concerns over whether companies will be able to pass on the increased expenses to consumers.