Latest news with #KieranShanahan
Yahoo
4 days ago
- Business
- Yahoo
Walmart, once ordered to ‘eat the tariffs,' is giving employees a year-round 10% discount to help them eat
In its largest employee perk rollout in years, Walmart is extending its 10% grocery discount to cover nearly all food categories for its 1.6 million U.S. workers—marking a significant boost to benefits at the nation's largest private employer. Announced in a LinkedIn video by Kieran Shanahan, executive vice president and chief operating officer at Walmart U.S., the change is effective immediately and applies both in-store and online, signaling Walmart's bid to support its workforce amid rising food prices and retention challenges. In a separate LinkedIn post, JD Mahaffey, group director and global head of executive total rewards, expanded on the new benefit: Previously, Walmart's 10% discount for employees was limited to fresh produce and select general merchandise, and most grocery items were excluded except during the November to December holiday season. With the new policy, nearly every food category is covered year-round, including staples such as dairy, frozen foods, dry groceries, meat, and seafood. In total, approximately 95% of regularly priced items in-store are now eligible for the discount. All employees and eligible corporate staff receive a discount card after 90 days of employment. The move was prompted by persistent worker feedback that called for more comprehensive and accessible perks, particularly as food inflation has squeezed household budgets. 'We've heard your feedback that these savings make a real difference for you and your families,' chief people officer Donna Morris wrote in a staff memo shared with Fortune. In fact, she described it as 'one of our most requested benefits.' Why is Walmart doing this now? The expansion comes as economic pressures weigh on households nationwide. Recent government data shows food prices for staples such as eggs and meat have jumped sharply year over year. The move also coincides with heightened concerns over new tariffs that threaten to further raise prices across major retailers, Walmart included. More than half of grocery shoppers surveyed in August cited tariffs as their top worry about food costs. By ramping up employee benefits, Walmart is responding to both external market forces and internal demand. It's a strategic step designed to bolster recruitment and retention at a time when competition for retail talent is fierce. Analysts note the company's efforts to improve its work culture, including earlier expansions of training programs, wage hikes for hourly staff, and the introduction of bonus programs for frontline workers. COO Shanahan explained in the company video: 'We know the impact this discount has for so many associates and their families, and one consistent piece of feedback we hear is to look at how we can make our associate discount program even better.' How does Walmart compare with other retailers? With the new perk, Walmart's benefits now align more closely with those of leading competitors. Target offers a similar 10% discount on most merchandise plus 20% off select food items, while Kroger gives staff 10% off house-brand products and other categories. Hy-Vee (a Midwest grocer) and Trader Joe's have even more generous policies, with discounts of up to 20% for employees. The timing of the announcement is crucial, coming just days before Walmart's quarterly earnings release and as the company grapples with both supply-chain challenges and inflation pressures. As economic uncertainty continues to roil the retail sector, Walmart's expanded grocery discount stands out as both a smart business maneuver and a measure aimed at fostering goodwill among its massive employee base. In May, Walmart issued a warning along with its earnings report that it may have to raise prices because of the anticipated impact of President Donald Trump's tariffs. 'We're wired to keep prices low, but there's a limit to what we can bear, or any retailer for that matter,' chief financial officer John David Rainey told the AP at the time. Trump responded by ordering Walmart to 'EAT THE TARIFFS.' This move by Walmart appears to confirm that Walmart can't eat all of them, and it will at least be helping its employees take home something to eat for the pre-tariff prices they used to see. Walmart did not immediately respond to a request for comment. For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. This story was originally featured on Sign in to access your portfolio
USA Today
5 days ago
- Business
- USA Today
Walmart gives employees extra savings on groceries with expanded discount
Walmart has expanded its discount program for employees, offering employees discounts on all groceries year-round versus discounts on specific items during the holiday season. In a memo the company sent out to associates on Aug. 13, the company said the change means employees get 10% off all food categories — including dairy, frozen, dry grocery, meat and seafood — as well as general merchandise and fashion. 'With this update, the associate discount now covers 95% of regularly priced items across the store,' the company said in the memo obtained by USA TODAY via email. Walmart's Executive Vice President and Chief Operating Officer Kieran Shanahan said in a video shared to LinkedIn that the company has listened to employees. 'We know the impact this discount has for so many associates and their families,' he said. 'You shared your thoughts and we've listened … Please keep the feedback coming on how we can make the benefits we offer even better.' Expanding the discount was one of their most requested changes, the company said in the memo. What's different about this expansion? Walmart employees receive Walmart Discount Cards after their first 90 days with the company, and if individuals work for the company for more than 20 years, they get an indefinite discount, the company said in the memo. According to the company, the discount card was first launched more than 50 years ago. The discount previously included a 10% discount on all fresh produce, most general merchandise, and a discount on items during the holiday season. Now, they'll pay lower prices for nearly all food sold at Walmart stores, including milk, bread, and meat, the company told USA TODAY on Aug. 14. The company also says the discount goes into effect immediately. More retail news: Amazon Prime members can now get same-day groceries for free. Here's how. Other retailers that offer employee discounts According to the human resources consulting company Human Capital Hub, other retailers that offer employee discounts include: Saleen Martin is a reporter on USA TODAY's NOW team. She is from Norfolk, Virginia – the 757. Email her at sdmartin@
Axios
05-06-2025
- Business
- Axios
Walmart expands drone delivery to 5 southern cities
Walmart plans to start delivering items by drone in five major cities, the company announced Thursday from its new headquarters in Bentonville, Arkansas. The markets are Atlanta; Charlotte, North Carolina; Houston, Texas; and Orlando and Tampa, Florida. The big picture: The expansion is the retailer's latest move to tap technology to get goods to customers faster and easier, and it has real bottom line consequences for the retailer. "When we see a customer adopt fast delivery, their spend with Walmart doubles, and then when they use it four times, spend triples," the company's Chief Operating Officer Kieran Shanahan said Thursday. The latest: Working with drone provider Wing, Walmart will launch the drone service at 100 stores, building on existing operations in Northwest Arkansas and Dallas-Fort Worth. Wing drones can fly up to 6 miles from their store. Zoom in: The NWA service is now only available in Pea Ridge, via Zipline, a Walmart spokesperson told Axios. More NWA locations will come soon, but no details are yet available, she said. Zoom out: Wing has a designation from the FAA allowing pilots to operate drones outside a human's line-of-sight, which ultimately means they can deliver to a larger radius from a store and use fewer people. Between the lines: The service will be free when customers order through the Wing app. Items weighing up to 2.5 pounds can be delivered, but Wing is working on doubling the payload capacity. What they're saying:"As we look ahead, drone delivery will remain a key part of our commitment to redefining retail," Greg Cathey, senior vice president of Walmart U.S. Transformation and Innovation, said in a news release. "We're pushing the boundaries of convenience to better serve our customers, making shopping faster and easier than ever before." Flashback: Walmart and former delivery partner DroneUp announced last year they would end drone delivery hubs in Phoenix, Salt Lake City and Tampa to focus on perfecting the service in the Dallas-Fort Worth area. It also ended pilot delivery projects in Bentonville and Prairie Grove. The bottom line: "Not only does the amount they spend triple, the number of categories and departments that they interact with increases, and their frequency of shopping with Walmart also increases," Shanahan said.
