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Tariff fears drive Walmart to slash employee grocery prices 10%

The initiative addresses ongoing inflation and high grocery prices, reflecting the retailer’s effort to boost staff retention and satisfaction while staying competitive.

Mohamed Dabo August 18 2025

Walmart has expanded its employee discount to cover more grocery items, including dairy, frozen foods, meat, and seafood.

Walmart has expanded its employee discount programme to include nearly all grocery items, providing a 10% discount year-round.

This change aims to support the company's 1.6 million US workers amid rising food prices and increased competition for retail employees.

Expanded discount coverage

Previously, Walmart's 10% employee discount applied only to fresh produce and general merchandise, with some seasonal exceptions.

Effective immediately, the discount now encompasses a broader range of grocery items, including dairy, frozen foods, dry goods, meat, and seafood.

However, clearance items remain excluded from the discount.

Eligibility and implementation

The expanded discount is available to Walmart employees after 90 days of employment.

The change was announced at a managerial meeting in Houston, with Chief People Officer Donna Morris noting that the update addresses one of the most requested employee benefits.

This move aligns Walmart's offerings with competitors such as Target and Whole Foods, which already provide broader in-store purchase discounts to employees.

Strategic response to economic pressures

The decision to extend the grocery discount reflects Walmart's response to ongoing inflation and the rising cost of food. With grocery prices for staples like eggs and beef remaining elevated, the expanded discount aims to alleviate financial pressures on employees.

Additionally, the move is part of a broader strategy to enhance employee satisfaction and retention, complementing other recent initiatives such as wage increases and potential bonuses for hourly staff.

By broadening its employee benefits, Walmart seeks to maintain a competitive edge in the retail sector, particularly as it faces challenges related to inflation and labour market dynamics.

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