Fact check: How does Walmart's employee benefits package compare to other large retailers in 2025?

1. Why Walmart says it’s closing the gap—and what that means for discounts and healthcare

Walmart publicly emphasized this period of benefit reform as making its package more competitive, notably by expanding associate discounts and rolling out the Personalized Wellbeing Copay Plan that offers $0 in‑network primary care copays and targeted lower out‑of‑pocket exposure for many associates; the company also discontinued multiple older plans and changed administrators, signaling a consolidation of offerings for 2026 ^{[1] [3]}. Company messaging highlights the immediate, tangible value of grocery and merchandise discounts and the appeal of lower primary‑care costs when comparing against peers. Independent observers echoed that the discount increases align Walmart with retailers such as Target on some points, and the medical plan changes could represent a meaningful benefits improvement for employees who use in‑network primary care frequently ^{[1] [2]}. Yet the administrative changes and plan eliminations create transition costs and choice reduction for workers who preferred legacy plans, an important omitted consideration in promotional narratives ^[3].

2. The new performance‑based raise model: efficiency or instability for hourly pay?

In October 2025 Walmart rolled out a performance‑based raise system for hourly store workers that layers metrics—teamwork, attendance, and store performance—onto years‑of‑service to determine raises up to 5%; an online dashboard lets associates track their progress ^{[4] [5]}. Corporate proponents argue this creates greater fairness and rewards high performers while incentivizing store‑level outcomes; advocates in coverage praised its potential to boost morale and tie pay to measurable contributions ^[4]. Critics note that tying raises to store performance and subjective teamwork scores can produce uneven pay outcomes across locations and seasons, shifting risk from the employer to employees in volatile economic periods; measurement design, calibration, and appeals processes will determine whether the system enhances or undermines compensation predictability, a key factor employees compare when assessing benefits against other large retailers ^[5].

3. How Walmart stacks up against Target, Costco, Kroger and others on core benefits

Comparative reporting and expert commentary in mid‑2025 indicate Walmart’s discount lift puts it similar to Target on associate discounts—Target historically offered a 10% discount and preferential fresh‑produce discounts, and observers state Walmart’s expansion narrows that gap ^[1]. Costco remains an outlier with higher base wages and benefit packages that industry observers have described as “far outpacing” many retailers in pay and benefits, a dynamic dating from earlier wage hikes that continued to influence comparisons through 2025 ^[6]. Grocery chains such as Kroger and others have varied offerings and regional differences that complicate one‑to‑one comparison; some solutions emphasize store wages and profit‑sharing or local market adjustments rather than uniform national packages, which means scale and strategy matter when benchmarking Walmart’s national reforms ^{[7] [6]}. The aggregate picture: Walmart closed some perception gaps on discounts and primary care costs but still competes against diverse models—higher wages and richer benefits at Costco, targeted perks at Target, and regionally variant programs at grocers.

4. What advocates and critics emphasize—and whose interests those views serve

Supporters—company spokespeople and some analysts—frame the package changes as win‑win, boosting retention and loyalty while offering concrete cost relief in healthcare and everyday shopping ^{[2] [3]}. Labor advocates and skeptical analysts warn the performance‑based raises and consolidation of plans could reduce long‑term security for employees, increasing variability in total compensation and potentially shifting costs through narrower provider networks or administrative changes ^{[4] [5]}. These divergent readings align with organizational interests: Walmart emphasizes operational flexibility and competitive positioning, analysts sympathetic to employer strategies focus on efficiency and talent incentives, while critics foreground worker stability and transparency in how metrics and plan changes translate to take‑home value. Each perspective highlights different tradeoffs—immediate savings versus income predictability—that workers must weigh.

5. Bottom line: measurable improvements with important unanswered questions for workers

Walmart’s 2025–2026 adjustments deliver measurable benefits—expanded discounts and a $0 primary‑care copay option—that bring some employee value closer to peers like Target, and an explicit plan to tie raises to performance that could reward excellence ^{[1] [3] [4]}. Key open questions remain: how the plan consolidations affect employees who relied on discontinued options, how consistently performance metrics are applied across stores, and whether total compensation volatility rises as a result; these operational details will determine whether the changes are a net improvement compared with competitors such as Costco, Target, Kroger and regional retailers ^{[5] [6] [7]}. Workers and policymakers should watch implementation, appeals mechanisms, and year‑over‑year pay and benefits outcomes to assess whether the headline gains translate into sustained employee welfare.