Walmart, a leading name in the retail world, has sparked a wave of frustration among its customers after implementing a controversial new fee. Just a few weeks ago, the retail giant introduced a $6.99 charge for Walmart+ Assist orders that total less than $35, a decision that has been met with considerable backlash. As reported by Reuters, this move has left many shoppers feeling frustrated and perplexed, questioning the necessity of such a fee during a time of rising grocery costs.
This particular program is a discounted membership specifically designed for customers who receive government assistance, such as food stamps or Electronic Benefit Transfer (EBT). Consequently, these individuals, who are often low-income customers, will face an additional charge if their orders do not meet the $35 minimum threshold.
According to Reuters, this minimum order fee for beneficiaries had been waived during the COVID-19 pandemic. However, Walmart is now bringing it back, citing the need to cover the operational delivery costs associated with smaller orders and to ensure the program’s sustainability. This decision arrives as the largest retailer in the U.S. anticipates a “tough year ahead,” noting that its typically low-income customers are moderating their spending.
Walmart customers have voiced strong disagreement with this new charge, unequivocally calling it unfair. The company, in a memo accessed by Reuters, advised store workers how to respond to inquiries from affected customers: “If an EBT customer asks why they are being charged a minimum purchase fee, explain that this is the correct fee for orders under $35.” Walmart maintains that reaching the $35 minimum will allow customers to avoid this additional charge.
The move occurs within a broader climate of intense consumer outrage over rising prices, even as official inflation data shows some cooling. While grocery prices have risen just 1% in the past year, according to data from the U.S. Bureau of Labor Statistics, food-at-home prices have climbed more than 24% since May 2019, putting a significant strain on household budgets and fueling anger.
This frustration is bubbling over in various ways. TikTok users, for instance, have criticized Walmart for implementing digital shelf labels, fearing they could enable rapid price increases akin to dynamic pricing. Wendy’s recently faced backlash after its CEO discussed potentially using dynamic pricing, a suggestion the burger chain later walked back, blaming misleading media reports for the uproar.
Another key irritant for shoppers is “shrinkflation,” the practice of reducing product size while maintaining the price. Consumers feel they are “paying more for it, but you’re giving me less, and the quality is worse.” Examples highlighted include Gatorade’s bottle size (which PepsiCo denies was changed for profit) and Walmart cutting paper towel sheets in its Great Value rolls (which Walmart says is not shrinkflation but a product reformulation for absorbency).
The feeling of paying more and getting less is a common experience, extending even to holiday traditions. For example, the cost of a July Fourth cookout for 10 people averaged $71.22 this year, a 5% increase from last year and a significant 30% jump from 2019, according to the American Farm Bureau Federation. This daily encounter with higher costs solidifies the perception of being “ripped off.”
Consumers’ deep frustration over high prices is reaching “a boiling point on this,” according to Jean-Pierre Dubé, a marketing professor at the University of Chicago Booth School of Business. Many feel burdened by rising costs, including significant expenses like electricity and rent, which have climbed over the past year. A Pew Research Center survey from May found that 62% of U.S. adults considered inflation a “very big problem,” surpassing other issues like illegal immigration and gun violence.
In response to shoppers pulling back their spending and retailers facing declining foot traffic, many companies are now emphasizing value. Over recent months, Target, McDonald’s, Aldi, Walmart, and Whole Foods have stepped up discounts and introduced new deals. Walmart, for its part, rolled back prices on nearly 7,000 food items in the first quarter.
Companies like Mondelez, which had paused promotions during the pandemic, are also reintroducing discounts, particularly on brands like Chips Ahoy! that face competition from cheaper private-label options. Kroger CEO Rodney McMullen has observed this trend, noting that brands are spending more on promotions, bringing discount levels back closer to pre-pandemic times. The question remains whether these efforts to offer better deals can temper the current wave of consumer outrage over pricing and value.
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