The perk earlier covered only fresh produce and general merchandise, but not dairy and meat.
Walmart (WMT), the largest U.S. private employer, has sweetened its 10% employee discount to cover nearly all grocery purchases, both in-store and online, according to a report in The Wall Street Journal, as Americans reel under the impact of high food prices.
Workers had long sought an extension of the discount perk, which was previously applicable only to fresh produce and general merchandise, but not to groceries such as milk, pasta, frozen pizza, or meat.
The WSJ report said the move was announced by Walmart U.S. CEO John Furner and a Miami-area store manager at a Houston gathering of store managers on Wednesday.
Investors are closely tracking developments at Walmart, which is viewed as highly exposed to U.S. tariffs that went into effect last week. The retail chain eased some concerns in July, reporting third-quarter revenue and profit above expectations and raising its full-year forecast.
Walmart is America’s largest private employer, with approximately 1.6 million staff members. On Stocktwits, the retail sentiment for the company’s shares was ‘bearish’ as of the last reading.
The stock fell 2.5% on Wednesday, following the release of the latest inflation data, which showed rising food prices in the U.S., with a particularly sharp increase in prices for staples such as eggs, coffee, and beef.
The benefit expansion brings Walmart more in line with some of its competitors. Whole Foods, owned by Amazon, offers workers a 20% discount on most in-store purchases. Target offers a 20% discount on fresh and frozen produce and some store-brand items, and a 10% discount on most other goods, according to WSJ.
It follows Walmart’s decision in January to raise the pay of regional managers and their salary cap to $600,000 per annum.
Walmart shares are up 11.8% year-to-date, compared to the 10% gains in the benchmark S&P 500 index (SPX).
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