Walmart Expands Grocery Discounts for 1.6 Million Workers as Tariff Jitters Grow

Walmart is sweetening one of its most popular perks just as inflation fears creep back into shoppers’ minds.

The retail giant announced Wednesday it’s expanding its 10% employee discount to cover nearly all groceries — from milk and meat to frozen dinners and seafood. Until now, the year-round discount only applied to fresh produce and most general merchandise like clothes and toys, with other food items included only during the holidays.

In a memo to staff, Chief People Officer Donna Morris said the change takes effect immediately and will now apply to about 95% of regularly priced items in-store and online. All of Walmart’s roughly 1.6 million US workers qualify for the perk after 90 days on the job.

“We’ve heard your feedback that these savings make a real difference for you and your families,” Morris wrote. “It’s one of our most requested benefits.”

The timing isn’t random. Walmart’s move comes as new tariffs from the Trump administration raise concerns about higher prices, despite the latest government data showing food costs holding steady overall. Some categories, like household goods, are already ticking up.

Walmart executives have been upfront about the pressure. Back in May, CFO John David Rainey warned that while the company is built to deliver “everyday low prices,” the size of these price hikes is “more than any retailer can absorb.”

The bigger discount is also smart business. By making groceries cheaper for employees, Walmart could nudge them to shop more at its own stores instead of rival grocers — and help retain staff in a competitive labor market. In recent years, the company has also raised hourly wages and rolled out bonuses for hundreds of thousands of frontline workers.

Walmart reports its latest earnings Aug. 21, but the company may already have scored an early win with its workforce — especially when every saved dollar counts.

CNBC and Reuters contributed to this report.