- Walmart said Thursday that it is raising the hourly wages for more than 565,000 store workers by at least $1.
- Employees who work on the front end of Walmart stores and in its food and consumable and general merchandise departments will receive the higher wages, which will be effective Sept. 25.
- The retail industry faces a tight labor market as it prepares to staff up for the holidays.
Walmart said Thursday that it is raising the hourly wages for more than 565,000 store workers by at least $1, as the retail industry faces a tight labor market going into the holiday shopping season.
Walmart U.S. Chief Executive John Furner said in a memo to staff that this marks the third investment the company has made in salaries in the past year. Walmart's U.S. average hourly wage is now $16.40, he said.
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According to Furner, employees who work on the front end of Walmart stores and in its food and consumable department and general merchandise department will receive the higher wages, which will be effective Sept. 25.
Walmart's minimum wage will rise to $12, from the $11 hourly base it set in 2018. However, that is lower than the $15-per-hour minimum rate at rivals Target and Amazon. The federal minimum wage is $7.25.
Earlier in the week, Walmart announced its plans to hire 20,000 workers for its supply chain as it ramps up for the holidays and prepares for more people to shop online. In July, it said it would pay 100% of college tuition and books for employees.
The nation's largest private employer is sweetening its perks as companies cope with fierce competition for workers amid ongoing Covid-19 outbreaks.
Other retailers have announced similar perks and policy changes in recent months. Among them, Target rolled out its own debt-free college program. CVS Health and Walgreens Boots Alliance said they are boosting starting wages to $15 an hour in the coming months, and CVS said it would drop education requirements for entry-level jobs.
— CNBC's Melissa Repko contributed to this report.