The Coles Group Ltd (ASX: COL) share price is taking a hammering on the market on Thursday.
At least the supermarket giant isn’t alone in the red. It’s suffering alongside many of its consumer staple peers.
At the time of writing, the Coles share price is $17.61, 4.55% lower than its previous close.
For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently recording a 1.65% tumble.
Let’s take a closer look at what’s going on with the supermarket stock today.
What’s going wrong for the Coles share price?
The Coles share price is tumbling to its lowest point since March despite no news from the supermarket giant.
And while its slump appears to be a mystery, there’s likely an obvious explanation for its tumble.
The company’s home sector – the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) – is also in the red. Right now, it’s down 4.46%, coming in as the ASX 200’s worst performing sector.
And the Coles share price is the sector’s third worst performer on Thursday.
The consumer staples sector’s downturn – and that of the broader ASX 200 – follows a similar tumble on Wall Street overnight.
Then, US retail giant Target Corporation (NYSE: TGT) dropped its first quarter earnings to the detriment of its share price. The stock plummeted a whopping 25% after it reported customer spending recently dropped.
That might likely help trigger fears of a recession in the United States, The Motley Fool Australia’s Bernd Struben reported earlier today.
Understandably, lower customer spending and recessions are both bad news for consumer staples.
Still, despite today’s dip, the Coles share price is just 1.7% lower than it was at the start of 2022. Meanwhile, the ASX 200 has fallen nearly 7%.