The retail sector saw sharp drops on Thursday with the Federal Reserve's well-telegraphed decision to hike interest rates unleashing more concerns from investors on the impact of a recession on consumer spending. Despite the talk from the Federal Reserve about a soft landing with interest rate increases now progressing, eight out of ten small business owners surveyed by CNBC said they expect a recession this year. The fear is that consumers will tighten as the macro pressures build. Discounters Ollie's Bargain Outlet Holdings (NASDAQ:OLLI -5.8%), Big Lots (NYSE:BIG -4.5%), BJ's Wholesale Club Holdings (BJ -4.8%), Costco (COST -4.8%) and PriceSmart (PSMT -4.1%) also moved lower. Mall stocks like Lululemon (LULU -5.8%), Dillard's (DDS -5.5%), Nordstrom (JWN -5.9%), Children's Place (PLCE -5.4%), Carter's (CRI -5.1%), Gap (GPS -3.8%), Ross Stores (ROST -3.5%), American Eagle Outfitters (AEO -4.1%), Boot Barn (BOOT -3.4%) and Citi Trends (CTRN -5.2%) were also in retreat. Retail bellwethers Walmart (WMT -1.3%) and Target (TGT -2.8%) were not immune to moves into negative territory.