In its largest employee perk rollout in years, Walmart is extending its 10% grocery discount to cover nearly all food categories for its 1.6 million U.S. Workers—marking a significant boost to benefits at the nation’s largest private employer. Announced in a LinkedIn video by Kieran Shanahan, executive vice president and chief operating officer at Walmart U.S., the change is effective immediately and applies both in-store and online, signaling Walmart’s bid to support its workforce amid rising food prices and retention challenges.
TL;DR
- Walmart now offers a 10% grocery discount to 1.6 million U.S. workers on nearly all food categories.
- This expanded perk applies in-store and online, effective immediately, to help with rising food prices.
- Previously limited, the discount now covers essentials like dairy, frozen goods, and meat year-round.
- The move aims to boost recruitment and retention amid fierce retail talent competition and worker feedback.
During a separate LinkedIn post, JD Mahaffey, group director and global head of executive total rewards, elaborated on the updated perk: Previously, Walmart's 10% employee discount applied only to fresh produce and certain general merchandise, with most grocery items excluded outside the November-December holiday period. The revised policy now encompasses almost all food categories throughout the year, including essentials like dairy, frozen goods, dry groceries, meat, and seafood. Consequently, about 95% of items at regular prices in stores now qualify for the discount.
All employees and eligible corporate staff receive a discount card after 90 days of employment. The move was prompted by persistent worker feedback that called for more comprehensive and accessible perks, particularly as food inflation has squeezed household budgets. “We’ve heard your feedback that these savings make a real difference for you and your families,” chief people officer Donna Morris wrote in a staff memo shared with Coins2Day. In fact, she described it as “one of our most requested benefits.”
Walmart's current actions questioned
The expansion comes as economic pressures weigh on households nationwide. Recent government data shows food prices for staples such as eggs and meat have jumped sharply year over year. The move also coincides with heightened concerns over new tariffs that threaten to further raise prices across major retailers, Walmart included. More than half of grocery shoppers surveyed in August cited tariffs as their top worry about food costs.
By ramping up employee benefits, Walmart is responding to both external market forces and internal demand. It’s a strategic step designed to bolster recruitment and retention at a time when competition for retail talent is fierce. Analysts note the company’s efforts to improve its work culture, including earlier expansions of training programs, wage hikes for hourly staff, and the introduction of bonus programs for frontline workers.
COO Shanahan explained in the company video: “We know the impact this discount has for so many associates and their families, and one consistent piece of feedback we hear is to look at how we can make our associate discount program even better.”
What's Walmart's standing against other retailers?
Walmart's updated perk brings its employee benefits closer to those of major rivals. Target provides a comparable 10% discount on most goods and an additional 20% off specific food items, whereas Kroger grants employees 10% off store-brand items and other product lines. Hy-Vee (a regional grocery chain) and Trader Joe’s feature even more favorable policies, offering staff discounts as high as 20%.
The announcement's timing is critical, occurring mere days before Walmart's quarterly financial report and while the corporation is contending with supply-chain difficulties and inflationary pressures. Amidst ongoing economic instability affecting the retail industry, Walmart's enhanced grocery price reductions are notable as both a shrewd business strategy and an initiative designed to cultivate positive sentiment among its vast workforce.
In May, Walmart issued a warning along with its earnings report that it may have to raise prices because of the anticipated impact of President Donald Trump’s tariffs. “We’re wired to keep prices low, but there’s a limit to what we can bear, or any retailer for that matter,” chief financial officer John David Rainey told the AP at the time.
Trump's reaction involved directing Walmart to “EAT THE TARIFFS.” This action from Walmart seems to validate that the company cannot absorb all the costs, and it will at least assist its workers in affording food at the pre-tariff costs they were accustomed to.
Walmart did not immediately respond to a request for comment.
For this story, Coins2Day used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.