As Walmart (WMT.US) is about to release its latest quarterly financial report, its 'Everyday Low Price' strategy will be put to the test. Previously, competitor Amazon (AMZN.US) warned that customers have begun to pursue value, forcing the online shopping giant to provide a forecast that the third quarter will continue the weak trend.

On Friday, Amazon's stock price fell nearly 9% before the market opened, while Walmart fell slightly.

As facing tough inflation, many Americans avoid large spending and instead purchase discount goods, including major retailers such as Target (TGT.US), Walmart, and Kroger (KR.US) have been working to lower the prices of necessities.

Although this has squeezed the entire industry's profit margins, Walmart's scale gives it more bargaining power with suppliers. Some analysts say that Walmart's low-price strategy may ultimately attract consumers who avoid high-priced stores.

Neil Saunders, managing director of the research firm GlobalData, said: '(Amazon's performance) brings chills to the entire retail industry. That is to say, for value-focused retailers like Walmart, performance may be better because its products are more focused on basic products.'

Walmart will release second-quarter results on August 15, and quarterly revenue is expected to increase by 4%. However, according to data from LSEG, this will be the slowest growth rate in nearly two years.

Amazon's financial report released on Thursday showed that online sales growth in the second quarter slowed down, and consumers were looking for cheaper shopping options, which led to the online giant's expected revenue for the current quarter below expectations.

Amazon CFO Brian Olsavsky said in the earnings conference call: 'Consumers are cautious about spending, reducing consumption, looking for products with lower average prices, and looking for discounts. This situation has been going on until the second quarter. We expect this situation to continue into the third quarter.'

Royal Bank of Canada Capital Markets analysts said in a report: '(Amazon) investors may link the decline in the retail business profit margin in the second quarter with the weak third-quarter revenue guidance, making it difficult to refute the argument that the discount will intensify to attract more weakened consumers.'

In addition to Amazon, the performance of major consumer packaged goods companies such as Procter & Gamble (PG.US) and PepsiCo (PEP.US) also showed signs of slowing down. Procter & Gamble's financial report showed a surprising decline in quarterly sales, and PepsiCo's performance did not meet analysts' expectations.

'There is no retail or e-commerce company that can escape the weakness in the non-essential consumer goods market,' said John Tomlinson, an analyst at research firm M Science.

However, it should be noted that for retailers, sales in the second quarter tend to be lower, and sales in the second half of the year usually increase due to the demand for back-to-school and holiday seasons.

So far this year, Walmart and Amazon's stock prices have outperformed the S&P 500 index, rising 33% and 21%, respectively, while the S&P 500 index has risen 14%.