Walmart workers' new benefit good for all grocery workers

Walmart has laid down a gauntlet for its retail rivals by giving employees a full 10% discount across its grocery products. The chain used to offer that deal for the Christmas season, but has expanded it to make it a full-year employee benefit.

Under the terms of its former deal, the chain's workers had a very limited discount, while the offer is basically unlimited.

In a letter sent to Walmart employees, Chief People Officer Donna Morris made it clear that requests concerning this sort of expanded discount had been among the most frequent by the company.

“We’ve heard your feedback that these savings make a real difference for you and your families. And we have continued to hear that you would like to see this benefit expanded,” Morris wrote.

The new policy applies to 95% of Walmart’s regularly priced items.

Target offers a flat 10% discount to employees, along with a 20% discount on fresh and frozen produce and the organic versions of its Good & Gather food products.

Walmart employees now get a 10% deal on groceries.

Image source: Shutterstock

Which grocery chains offer employee discounts?

Whole Foods: Employees receive a 20% discount on most in-store purchases, starting from Day 1. After six months, this can increase to 30%.
Target: Offers a 20% discount on fresh and frozen produce and certain store-brand items. Most other items are discounted by 10%, available from the first day.
Trader Joe’s: 10% off all products, plus generous perks such as product tastings.
Albertsons/Safeway: Employees get around 5% off everything, and up to 10% off store-brand items.
Kroger: Associates receive a 10% discount on Kroger-branded products.
H-E-B: Provides 10% off all its brand products to employees.
Sprouts Farmers Market: Employees receive a 15% discount on organic and natural grocery items.
Costco and Sam’s Club don’t offer discounts but grant employees a free membership instead.
Publix is employee-owned and offers stock ownership, bonus programs, and strong benefits, but specific employee grocery discount rates aren’t typically available.

Experts react to Walmart's benefit change

Public and employee response to Walmart' benefits change has been positive, noted the experts on RetailWire's Brain Trust.

They were asked the question “Will Walmart’s employee discount expansion spur competitors to follow suit?”

“I find this question rather pointless: Maybe it will, maybe it won’t, but – as some of the critics implied – overall compensation is far more important that what particular perks are included in it…Walmart’s raising – or not – of their wage scale is far more likely to spur reaction,” Craig Sundstrom wrote.

GlobalData Managing Director Neil Saunders made it clear that Walmart needed to make this move.

“This is a solid additional benefit for Walmart workers. In some ways it brings Walmart into line with other retailers which have more generous discount packages. That is necessary as Walmart wants to recruit and retain talented people. Of course, there will still be carping from some over total compensation at Walmart,” he posted.

Paula Rosenblum complimented the retailer on the change.

“The move is brilliant. It recognizes that inflation is gonna happen. This may not cover all of it, but it should give employees a sense of security. Competitors may not think they can afford to do it. That’s not gonna help customer service much,” she shared.

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Frank Margolis explained how the benefit helps Walmart on multiple levels.

“It’s good PR for the company, it’s good cost-savings for the associates, it drives sales, and it creates more loyalty for the associates to actually shop at the store they work at, vs. a lower-priced competitor like Aldi. A win-win-win-win,” he wrote.

Walmart benefits for employees

This list may not include everything offered or the conditions under which certain benefits are given:

Employee Discount: 10% discount on nearly all grocery items, including dairy, meat, frozen foods, and more — applies both in-store and online, year-round. Eligible after 90 days of employment; becomes a lifetime benefit after 20 years.
Education Benefits (Live Better U): Tuition coverage “$1-a-day college program,” free high school programs, and discounted post-secondary options via partnerships like Guild Education.
401(k) and Associate Stock Purchase Plan: 401(k) plan with employer match (generally believed to be 6%). Employee Stock Purchase Plan: Walmart matches 15% of the first $1,800 contributed per year, adding up to $270 in free stock annually.
Health, Vision, Dental, and Disability Insurance: Comprehensive health care benefits, plus dental, vision, life insurance, short- and long-term disability coverage, HSA (health savings account) with company contributions, and wellness programs like Lyra (mental health support).
Health Savings and Wellness: HSA with rollover contributions. Wellness initiatives, including gym membership discounts.
Paid Time Off and Leave: PTO, including vacation, sick leave, and PPTO (Paid Parental/Personal Time Off) — accrues based on tenure and position.
Parental and Family Leave: Paid parental leave for new parents (birth or adoption) available, though specifics vary by role and tenure.
Walmart+ Membership: Free Walmart+ membership for employees (excluding temps), which includes benefits like free shipping, delivery options, fuel discounts, 6 months of Spotify, and access to Paramount+ Essential tier.
Additional Discounts and Perks: Through the Associate Discount Center, employees access deals on products and services such as auto insurance, AMC movie tickets, AT&T plans, Disney World tickets, and more.