Walmart extending 10% employee discount to grocery - report

[Walmart Supercentre]
shaunl/iStock Unreleased via Getty Images

Walmart (NYSE:WMT [https://seekingalpha.com/symbol/WMT]) is offering employees a 10% discount on groceries as part of its push to attract and retain its hourly workforce.

According to The Wall Street Journal, [https://www.wsj.com/business/retail/walmarts-new-employee-perk-takes-a-bite-out-of-workers-grocery-bills-2d3f2329] the company told store managers at a meeting in Houston Wednesday that the 10% discount will now extend beyond general merchandise and fresh produce to all items in its grocery aisles year round.

“Extending the discount to more goods year-round is one of our most requested benefits,” said Walmart Chief People Officer Donna Morris in a letter to staff Wednesday cited by the WSJ.

The benefit applies to all U.S. workers after 90 days of employment.

While Walmart’s (NYSE:WMT [https://seekingalpha.com/symbol/WMT]) new policy will cheer employees, it still pales in comparison to competitors like Target (TGT [https://seekingalpha.com/symbol/TGT]) and Amazon’s (AMZN [https://seekingalpha.com/symbol/AMZN]) Whole Foods, both of which give employees a 10% to 20% discount on most items on the first day of employment.

Coupled with recent employee initiatives like bonuses for hourly employees, free Walmart+ memberships, and higher pay for store managers, Walmart (NYSE:WMT [https://seekingalpha.com/symbol/WMT]) hopes to make the company a “great place to work,” Morris said.

The development had no impact on Walmart (WMT [https://seekingalpha.com/symbol/WMT]) shares, currently trading defensively on Wednesday, weighed down by Amazon’s (AMZN [https://seekingalpha.com/symbol/AMZN]) announcement to offer same-day delivery on groceries.

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