Walmart is giving its employees a wider grocery discount, expanding the perk to cover nearly all food items in stores and online. The move begins immediately.
For years, workers only received 10 percent off on produce and general goods, with groceries like milk, meat, and pasta excluded except during the holiday season. Employees often criticized the restriction.
The company announced the change Wednesday at a Houston meeting of store managers. The news, shared by Walmart U.S. CEO John Furner and a local manager, received a standing ovation from attendees.
“All I can think about is my associates back home,” said the Miami-area manager. “The associate pantry means everything to them, and this will really help with meals.”
Chief People Officer Donna Morris told employees in a letter that the discount is one of the most requested benefits. Walmart’s 1.6 million U.S. staff will qualify after 90 days of work.
The perk excludes clearance items but applies year-round. Morris said the goal is to help employees manage rising costs and continue making Walmart “a great place to work.”
Walmart’s competitors already offer similar deals. Whole Foods workers receive 20 percent off most purchases from day one. Target staff get 20 percent off produce and store brands, plus 10 percent off most other items.
Amazon’s hourly employees receive a smaller 10 percent discount, capped at $100 each year. Walmart’s expansion could make it more attractive to hourly workers choosing between retail employers.
The change comes as grocery prices remain a concern. Government data shows overall food prices held steady last month, but staples like eggs, beef, and coffee have risen sharply compared to last year.
Inflation has squeezed households for several years, driving more shoppers to Walmart. The retailer has benefited, with steady sales growth and more high-income customers buying both budget and premium goods.
The discount is part of a broader package of benefits Walmart has introduced. These include higher wages for store managers and potential new bonuses for hourly staff across its U.S. stores.
The company did not disclose the cost of the expanded discount. Executives said it reflects Walmart’s continued effort to attract and keep workers in a competitive labor market.
Walmart is set to report quarterly earnings next week. Analysts expect food sales to remain strong, as more consumers turn to Walmart to stretch household budgets while prices stay high nationwide.