Retail Blog: Week of 9/25/2017

In a time where brick and mortar retail sales are dwindling, retail wages seem to be slowly increasing.  Wal-Mart has moved its minimum wage up to $10, Kohl’s has gone to $9, and now target is making the transition as well.  It seems that with the current retail environment, companies are taking notice to the importance of investing in their employees in order to better their stores environment and customer service, as well as benefiting the employees. 

For years Target and Wal-Mart have slowly been engaging in a quiet wage battle, which has led up to this pay increase.  But not only has target committed to raising its wage from $10 to $11 in the next year, they have declared that by the end of 2020 they will be offering their employees $15 and hour as well as comprehensive training and other accommodations to ensure employee morale stays high as well as a good work life balance.  This decision may be forcing the hand of other retailers in the future to stay competitive with their wage and benefit offerings in order to stay staffed to with an effective workforce.  With this increase, Target officials have reiterated that its sales outlooks remain strong and that the increased expenses due to the wage and salary increases will not affect their bottom line, due to expensing these increases to their $7 billion investment plan.  Target has stated that this wage bump will be applied to the 100,000 seasonal worker that are expected to be added on for the holiday season, as well as current employees.