Walmart's 10% employee discount now includes most groceries amid tariff pressures

As Walmart raises prices, the company is expanding its 10% employee discount program to include most grocery items for its approximately 1.6 million U.S. workers. 

The company announced in a letter to employees Wednesday that, effective immediately, employees will receive 10% off all food categories, including dairy, frozen, dry grocery, meat, and seafood, as well as general merchandise and fashion.

The updated policy will apply to 95% of Walmart’s regularly priced items. Before the policy change, the extended discount offering was only available to workers during the holiday season. Outside of this time period, employees could get 10% off on fresh produce and the majority of its general merchandise. 

“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,” the company’s chief people officer Donna Morris said in the letter, which was sent to employees Wednesday and shared with Quartz.  

Morris added that Walmart’s 10% discount is one of its most requested benefits.  

The retailer confirmed back in May that it would raise prices during the upcoming months to battle rising costs brought on by tariffs.

“We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs … we aren’t able to absorb all the pressure given the reality of narrow retail margins,” Walmart CEO Douglas McMillon said in an earnings call.

President Donald Trump responded to Walmart’s price increase announcement in a post on his Truth Social site, telling the retailer to “EAT THE TARIFFS” and saying, “I’ll be watching, and so will your customers!!!”

A CNBC analysis from July tracked 50 Walmart products over seven weeks at a store in New Jersey and noted that about 12 of them went up in prices, including milk, frying pans, jeans, and some coffee products.

Walmart’s new discount announcement comes nearly a week after President Trump’s new tariff rates for nearly 70 countries went into effect. 

Walmart’s COO Kieran Shanahan posted a video on Linkedin Wednesday announcing the updated program, saying he shared the “exciting news” with Walmart store and supply chain leaders at its annual Holiday Meeting. 

One worker commented on the post saying they were “confused” when they received a larger discount than expected a few days prior, adding this update is “great for associates.”  

U.S. employees get access to the discount program after working at Walmart for 90 days. After working at the company for 20 years, employees have access to the discount for life. 

Walmart’s stock is down about 2% Wednesday. 

The Wall Street Journal was the first to report the news about the expanded discounts on Wednesday.