NEW YORK (AP) – Inside a Walmart store in North Bergen, New Jersey, cake decorators are busy crafting elaborate custom cakes for the graduation season, which is the busiest time of year for this department. With the company’s 6,200 employees dedicated to hand-decorating cakes per customer orders, Walmart has become a major player in the cake market. The cakes are pre-made and frozen, supplied by vendors rather than created in-store, highlighting the significance the retailer places on this segment of their business.
The average hourly wage for Walmart cake decorators is approximately $19.25, making them the highest-paid hourly workers at the store, excluding managers. This is notably higher than the $18.25 average for all non-managerial positions within Walmart. Melissa Fernandez, 36, who has worked for the company for 11 years, transitioned from electronics to cake decorating after a two-month training period. She expresses her passion for baking and artistic expression, now earning about $24.40 an hour as a dedicated cake decorator.
Despite their relatively high status within the company, Walmart cake decorators face criticism on social media. The retailer promotes personalized baked goods on platforms like TikTok, where decorators showcase their creations. However, this has led to accusations of undercutting professional cake artists with their low-priced offerings. Some bakers have responded with videos explaining the quality and artistry of their higher-priced cakes compared to Walmart’s products.
A typical customized sheet cake at Walmart costs around $59, significantly lower than similar offerings from independent bakeries, which can charge one-third to half more. With one out of every four cakes sold in the U.S. coming from Walmart, the company decorates over 1 million cakes in just the two peak months of May and June. Specifically, during graduation time, decorators at the North Bergen store can create 50-60 cakes daily, nearly doubling their output from the rest of the year.
Michael DeMarco, the store’s fresh food department manager, attributes their increasing business to the skills of the decorators and the promotional impact of viral TikTok videos. A notable example is a bouquet cake created by Fernandez that garnered nearly half a million views, demonstrating the power of social media in driving traffic to Walmart’s bakery department. Popular cake designs include heart-shaped cakes and whimsical creations resembling meals like sushi or spaghetti.
Tiffany Witzke, a fellow cake decorator with a substantial following on TikTok, notes the evolving demands of customers who increasingly request intricate and complex designs, far beyond basic decorations. Liz Berman, the owner of The Sleepy Baker in Natick, Massachusetts, contrasts her business model with Walmart’s, emphasizing her commitment to custom, from-scratch cakes that focus on high-quality ingredients and meticulous detailing. Berman charges premium prices, reflecting the labor-intensive process and artistic effort involved in creating her cakes.
Walmart’s cake decorating division is reported to have higher profit margins compared to other product categories, aligning with consumer trends favoring affordable yet quality celebratory items. Retail analyst Marshal Cohen explained that during these times, the customers are inclined to prioritize cost-effective options that still meet their celebratory needs.
In a survey of customers at the North Bergen store, consumer satisfaction remains high. George Arango, who purchased two customized cakes for $40, highlighted the unbeatable prices as a deciding factor in his decision to shop at Walmart. Overall, Walmart’s strategy in the cake market illustrates its ability to blend quality, affordability, and customer trends, positioning it as a leader in the affordable luxury segment within the retail bakery industry.
