BENTONVILLE, Ark. — Walmart is making a major change to one of its most popular employee benefits, extending its 10% discount to cover nearly all grocery purchases, both in-store and online, as reported by The Wall Street Journal. The new benefit, which took effect immediately, is designed to help the company’s approximately 1.6 million U.S. associates manage rising food costs while also enhancing retention in a competitive labor market.
For years, Walmart’s employee discount applied to fresh produce and general merchandise, but excluded most grocery staples, such as milk, pasta, frozen pizza and meat, except during the November and December holiday season. Workers had long voiced frustration over those limitations. Under the new policy, the discount now applies to those items year-round, with the exception of clearance merchandise. Eligible employees receive the perk after 90 days of employment.
The announcement was made on Wednesday by Walmart U.S. CEO John Furner and a Miami-area store manager on stage at a Houston gathering of store leaders, drawing a standing ovation from attendees. The store manager, referencing “associate pantries” — informal snack supplies kept in backrooms for staff — said the expanded discount would make a real difference for employees who often struggle to cover their next meal.
Chief People Officer Donna Morris described the change as “one of our most requested benefits” in a letter to employees, adding that the company wants to “continue to make Walmart a great place to work.”
The move brings Walmart’s discount program closer to those of key competitors. Whole Foods, owned by Amazon, offers workers a 20% discount on most purchases from their first day of employment. Target offers a 20% discount on fresh and frozen produce, as well as certain store-brand items, and 10% off most other goods — which can be combined — starting on the first day. Amazon offers a smaller benefit, providing most U.S. warehouse and hourly workers with a 10% discount, capped at $100 in annual savings.
Walmart has introduced several employee-focused initiatives in recent years, including higher salaries for store managers and potential bonuses for hourly associates. The grocery discount comes as food inflation continues to weigh on household budgets. While federal data show that overall grocery prices held steady in July, costs for staples such as eggs, coffee, and beef remain sharply higher than they were a year ago.
The expanded discount underscores Walmart’s dual strategy: remaining competitive in attracting and retaining store talent while reinforcing its value proposition for shoppers feeling the effects of persistent inflation. The Bentonville, Ark.-based retailer has benefited from this environment, reporting years of steady sales growth as consumers flock to its stores for lower-priced groceries and increasingly for premium offerings and fast delivery.
Walmart did not disclose the estimated cost of expanding the benefit. The company is scheduled to report its latest quarterly earnings next week.
