Amid increased competition for talent as well as market share, big-box retailer Target is raising its minimum hourly wage rate, to $11 next month, then to $15 by the end of 2020.
This investment by Target will mean pay increases for thousands of associates before the coming holiday season, as well as some 100,000 seasonal team members that the Minneapolis-based retailer is starting to hire now.
“Target has a long history of investing in our team members. We care about and value the more than 323,000 individuals who come together every day with an absolute commitment to serving our guest,” said Brian Cornell, CEO and chairman. “We’ve always offered market-competitive wages to our team members. With this latest commitment, we’ll be providing even more meaningful pay, as well as the tools, training and support our team needs to build their skills, develop professionally and offer the service and expertise that set Target apart.”
The $15 rate would make Target’s base pay the highest in the retail industry.
Target’s move follows that of some competing retailers, as well as a trend of local governments in some major markets to mandate higher base pay above the federally mandated minimum of $7.25 per hour.
Last year, Walmart raised its minimum wage to $10, while Costco recently boosted its starting hourly pay to $13.
As unemployment eases and competitors across the discount retail channel plan to open new stores in the coming year, including Dollar General, Aldi and Lidl, retailers will be under the gun to attract and retain talented associates to deliver service levels sufficient to stay on top of their game.