Walmart expands grocery discount for 1.6 million employees as tariffs renew inflation concerns

In this articleWMT your favorite stocksCREATE FREE ACCOUNTGroceries are seen at a Walmart supermarket in Houston, Texas, on May 15, 2025.Ronaldo Schemidt | AFP | Getty ImagesAs tariffs spark worries of higher prices, Walmart is dangling more discounts for its own employees.The largest private U.S. employer said Wednesday that it will offer a 10% employee discount on nearly all groceries, including milk, meat and frozen food

That discount previously applied to fresh duce and most general merchandise items, such as clothing and toys, but only to other food during the holiday season.In a memo to employees obtained by CNBC, Walmart's Chief People Officer Donna Morris said the expanded price cut takes effect immediately

With the expansion, the reduction will now include 95% of regularly priced items across the store, she said."We've heard your back that these savings make a real difference for you and your families," she wrote in the memo. "And we have continued to hear that you would to see this benefit expanded

In fact, it's one of our most requested benefits."Walmart's announcement comes as economists and companies closely watch how rising tariffs trickle through the U.S. economy and shape consumer spending

The consumer price index, a closely watched inflation metric from the Bureau of Labor Statistics, came in better than feared on Tuesday, with food prices flat

Yet the data still pointed to higher prices on some items

Back in May, the company's CFO John David Rainey told CNBC that the discounter was "wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb."The expanded employee discount could boost Walmart's own , too

It could help motivate its huge workforce to spend more of their money at its stores and website rather than at other grocers or retailers

And the perk could also help attract and retain workers.The big-box giant will report its earnings on Aug. 21.Walmart's policy change was first reported by The Wall Street Journal.