Investors in the retail space have sustained losses as the sector has drastically underperformed broader.

The S&P United States BMI Retailing sub-index has plummeted 26.5% year over year since May 18, 2021, while the S&P 500 has fallen 4.9%.

During the first-quarter earnings call, Douglas McMillon, CEO and president of the largest U.S. retailer, Walmart Inc., highlighted that rising costs along with supply-related factors have resulted in lower-than-expected bottom-line results in the first quarter.

Walton Family and Walton Enterprises LLC together own approximately 47% of Walmart shares, which hit a 52-week low of $118.60 on May 19.

Walton Enterprises is third in terms of the market value of its investment in the retail sector, with $131.47 billion.

Top 20 investors in retail

Vanguard Group Inc. leads the largest investors in the retail sector with a market share of 7.50%. It has investments in 182 out of the 319 companies with 57.05% stakes in the segment valued at $242.20 billion.

Jeff Bezos was the fifth-highest investor in the retail sector. His only investment in the space is a $115.05 billion holding in Amazon.com Inc.

With a 2.05% market share, T. Rowe Price Group Inc. stood seventh on the list with stakes in 137 companies valued at $66.10 billion.

Morgan Stanley held a 57.37% stake in 183 companies, one of the highest number of investments by an investor, with a market value of $23.31 billion.

Street signs

After being in concert with S&P 500 in terms of index value change till the end of 2021, the S&P United States BMI Retailing sub-index has been on a steeper slide in 2022.

The retailing index has been in the negative territory year to date, compared to the S&P 500, which has edged marginally lower since early May, led by a sharp sell-off as concerns over bond yields rising and tightening financial conditions drove the downturn in the stock markets.

The downward trajectory of the retailing index could prompt several large investors to reduce their exposure to the retail sector.