STORY: Shares of Target fell ten percent Wednesday morning after the retailer reported quarterly earnings that missed Wall Street estimates.

The big box chain also issued an underwhelming forecast for the current quarter, saying consumers were pulling back on spending.

Target's results come two days after the company cut prices on 1,500 products, with plans to eventually lower prices on 5,000 grocery items over the summer.

Companies ranging from McDonald's to PepsiCo have flagged in recent weeks the strain that Americans are under due to stubborn food inflation and the rising costs of eating out, rents and mortgages.

But Target's disappointing earnings stood in contrast to larger peer Walmart, which last week reported better-than-expected results and raised its annual outlook as shoppers prioritized food and other household essentials.

And TJ Maxx parent TJX on Wednesday raised its annual profit forecast, betting on easing costs and strong demand for its affordable products.

It also posted better-than-expected first-quarter results.

With lower prices compared to department stores, TJX has seen a sales boost across a variety of categories, including discretionary items.

The company says its decade-old daily "treasure hunt" strategy also helped to attract younger customers, who like to post their finds on social media.

Shares of TJX rose more than 7% in Wednesday morning trading.