Target said it will increase its minimum hourly wage this year by a dollar, to US$11, and raise it to $15 an hour by the end of 2020. Conway Gittens reports.
September 26, 2017
Target employees are getting a raise.
America's second-largest discount retailer — raising its minimum hourly wage to US$11.
That's a one dollar increase starting in October.
The hike applies to Target's 300,000 employees and 100,000 temporary workers it's hiring for the holiday season.
But that's not the end of it.
The Minneapolis-based retailer will boost its minimum wage to $15 an hour by the end of 2020.
Bankrate's Mark Hamrick:
(SOUNDBITE) MARK HAMRICK, WASHINGTON BUREAU CHIEF AND SENIOR ECONOMIC ANALYST, BANKRATE (ENGLISH) SAYING:
"This is ultimately aims at helping customers have better experience by having better trained workers, workers who are paid a little bit more, and who are intending to stay in those jobs. So, it's an important move for the workers at Target. It's an important move customers who go to Target. And it's in important move management, which wants to, ultimately, satisfy shareholders."
To compare, Walmart — the largest retailer and private sector employer in the United States — last raised its minimum wage for store workers in 2016 to $10 per hour.
Target said the hikes won't hurt its full-year and quarterly earnings forecasts.
But the company's stock traded lower after the announcement.