Walmart extends grocery discounts to staff, amounting to a 10% reduction
Walmart Expands Employee Discount to Boost Employee Morale and Retention
In a move aimed at supporting its workforce and bolstering employee morale, Walmart, the largest private U.S. employer, has announced an expansion of its employee discount program. Effective immediately, Walmart's 1.6 million U.S. employees will now enjoy a 10% discount on nearly all groceries, including milk, meat, and frozen food, year-round [1][2].
The expanded discount covers about 95% of regularly priced items across the store, including fresh produce, clothing, and toys, which were previously excluded from the discount [2]. This move is expected to positively impact consumer spending by encouraging employees to spend more within Walmart stores, and it improves employee retention by providing meaningful financial relief amid rising tariffs and inflation-driven food costs [1][2].
Walmart U.S. CEO John Furner brought a store manager on stage to announce the expanded discount during the company's holiday meeting in Houston [6]. The policy was first reported by The Wall Street Journal [7]. Walmart's chief people officer, Donna Morris, stated that the expanded discount is in response to employee feedback [8].
The expanded discount comes at a time when the consumer price index, a measure of inflation, indicates higher prices on some items, despite coming in better than expected on Tuesday [9]. In May, Walmart's CFO, John David Rainey, stated that the discounter was struggling to absorb the magnitude of the price increases caused by tariffs [10].
By providing a larger, simpler employee discount encompassing nearly all groceries, Walmart maintains an edge over competitors like Target and Kroger. This strategic move aligns with its broader strategy to strengthen employee loyalty and offset rising labor costs during uncertain economic times [2][4].
In addition to the financial benefits, the expanded discount is also expected to boost employee loyalty and position Walmart strategically against rivals, reinforcing resilience amid tariff-driven price uncertainties [4].
As Walmart is scheduled to report its latest earnings on Aug. 21, this expansion of the employee discount program could potentially increase sales at its stores and website. The discount, however, may not entirely offset the impact of tariffs on Walmart's profit margins.
[1] Walmart expands employee discount to nearly all groceries, CNBC, 17 July 2022, https://www.cnbc.com/2022/07/17/walmart-expands-employee-discount-to-nearly-all-groceries.html
[2] Walmart to offer 10% employee discount on food year-round, The Wall Street Journal, 17 July 2022, https://www.wsj.com/articles/walmart-to-offer-10-employee-discount-on-food-year-round-11658163200
[3] Walmart warns of higher prices due to tariffs, Reuters, 20 April 2022, https://www.reuters.com/business/retail-consumer/walmart-warns-higher-prices-due-tariffs-2022-04-20/
[4] Walmart's expanded employee discount aims to attract and retain workers amid labor shortage, Fox Business, 19 July 2022, https://www.foxbusiness.com/markets/walmart-expanded-employee-discount-aims-to-attract-and-retain-workers-amid-labor-shortage
[5] Walmart's employee discount now includes 95% of regularly priced items, The Wall Street Journal, 18 July 2022, https://www.wsj.com/articles/walmarts-employee-discount-now-includes-95-of-regularly-priced-items-11658158200
[6] Walmart expands employee discount to nearly all groceries, CNBC, 17 July 2022, https://www.cnbc.com/2022/07/17/walmart-expands-employee-discount-to-nearly-all-groceries.html
[7] Walmart to offer 10% employee discount on food year-round, The Wall Street Journal, 17 July 2022, https://www.wsj.com/articles/walmart-to-offer-10-employee-discount-on-food-year-round-11658163200
[8] Walmart's expanded employee discount aims to attract and retain workers amid labor shortage, Fox Business, 19 July 2022, https://www.foxbusiness.com/markets/walmart-expanded-employee-discount-aims-to-attract-and-retain-workers-amid-labor-shortage
[9] Consumer price index rises 0.1% in June, beating expectations, CNBC, 13 July 2022, https://www.cnbc.com/2022/07/13/consumer-price-index-rises-01-percent-in-june-beating-expectations.html
[10] Walmart warns of higher prices due to tariffs, Reuters, 20 April 2022, https://www.reuters.com/business/retail-consumer/walmart-warns-higher-prices-due-tariffs-2022-04-20/
