Dive Brief:
- Walmart is expanding a 10% worker discount on groceries to be available year-round instead of solely during the holiday season, Kieran Shanahan, executive vice president and chief operating officer at Walmart U.S., said in a LinkedIn video on Tuesday.
- The discount for Walmart employees now includes all of the retailer’s food categories, including dairy, frozen, dry goods, meat and seafood, Shanahan said. The discount previously only applied year-round to fresh produce and general merchandise, JD Mahaffey, group director and global head of executive total rewards at Walmart, wrote on LinkedIn.
- The expanded grocery discount comes as Walmart ramps up worker benefits as tariffs threaten to drive up prices at the company’s stores and elsewhere.
Dive Insight:
Walmart is expanding its grocery discount as a perk to help attract and retain associates at a time when consumers have heightened concerns about how much they are spending on food. More than half of respondents who participated in an August survey by the FMI — The Food Industry Association cited tariffs as their top concern related to the cost of food.
In total, the discount now covers 95% of regularly priced items in-store, Mahaffey wrote.
The newly announced changes stem from worker feedback for simpler and more accessible perks, Shanahan said.
“We know the impact this discount has for so many associates and their families, and one consistent piece of feedback we hear from our listening sessions is to look at how we can make our associate discount program even better,” Shanahan said.
Walmart associates and corporate office workers receive a discount card after their first 90 days with the company, Walmart Chief People Officer Donna Morris said in a staff memo shared by the company to Grocery Dive. Extending the discount to more items year-round was “one of our most requested benefits,” Morris wrote.
The move puts Walmart more on par with major retailers’ employee discount perks. Kroger’s associates get 10% off private label items as well as discounts on categories such as apparel, jewelry and home. Target employees get a 10% discount on “most” merchandise as well as an additional 20% off on a variety of food and wellness products.
Hy-Vee employees get a 10% discount on Hy-Vee purchases, a 20% discount on dine-in orders at the company’s restaurants and a free Hy-Vee Plus membership.
Other grocers offer a higher employee discount. Trader Joe’s and Whole Foods Market both offer their workers 20% off.
The expansion of Walmart’s associate discount program marks the company’s latest boost to its employee benefits. Earlier this year, Walmart announced the expansion of its Associate to Technician program to train 4,000 technicians by 2030.
Walmart has also rolled out several initiatives this year to boost hiring, including an AI-powered interview coach and new career tools specifically for veterans.
