Walmart Expands Employee Discounts to Combat Inflation and Retain Staff

Walmart (WMT) is expanding its employee discount to nearly all grocery purchases online and in-store, rising from 10% to align with rivals Target (TGT) and Amazon's (AMZN) Whole Foods. The change aims to help employees cope with rising prices due to inflation. Walmart has around 2 million staff in total and the discount will apply after 90 days of employment.

Walmart (WMT) has announced an expansion of its employee discount program to include nearly all grocery purchases, both online and in-store. The discount, which previously applied to a limited range of items, now covers 95% of regularly priced items across the store. This move comes as the company aims to help employees cope with rising prices due to inflation, a trend that has been exacerbated by recent tariffs.

The discount program, which was first reported by CNBC [1], will be available to Walmart's approximately 1.6 million U.S. employees after their first 90 days with the company. The expansion aligns Walmart's employee discount with those offered by rival retailers such as Target (TGT) and Amazon's (AMZN) Whole Foods. Walmart's Chief People Officer Donna Morris stated that the company has received significant feedback from employees requesting this expansion, and that the discount is one of its most requested benefits [2].

This change is expected to boost Walmart's business by encouraging employees to spend more of their money at the retailer rather than at competitors. Additionally, the expanded discount could help attract and retain workers in an increasingly competitive job market.

Walmart's decision to expand the employee discount comes as the company has warned about potential price increases due to rising costs brought on by tariffs. In May, Walmart's CFO John David Rainey stated that the company was "wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb" [1].

The retailer's latest earnings report is scheduled for August 21. As of Wednesday, Walmart's stock was down about 2% following the announcement of the expanded discount program [2].

References:
[1] https://www.cnbc.com/2025/08/13/walmart-expands-employee-discount-on-groceries.html
[2] https://qz.com/walmarts-expands-employee-discount-amid-tariff-pressures?utm_medium=sharefromsite&utm_source=quartz_link