Target Job, Pay, Benefits, Career: You'll Never Guess The Retailer's New Minimum Wage
Another big-box retailer has decided to raise the minimum wage for its employees. Target has announced it will raise its minimum pay to $9 per hour, matching recent increases by various other retailers.
Target announced its new minimum wage increase on Wednesday just a month after dodging questions on whether it would follow on the path forged by various other retailers. According to CNBC, Target will increase its base pay to $9 an hour starting on April across all its 1,800 stores.
CNBC adds a women's advocacy group called UltraViolet had been pressuring the retailer to raise wages. Wal-Mart, the country's largest employer already raised its wage to $9 per hour. Others who have followed are TJX, which own TJ Maxx, Marshalls and Home Goods.
However, Target also plans to cut 1,700 employees as a part of a plan to save $2 billion.
"Our goal is to always be competitive with the marketplace," Target spokesperson Dustee Jenkins told the Wall Street Journal, which points out that retails wages have been on the rise. With the shrinking unemployment rate, Target has to find new ways to entice workers.
Jenkins said the company already pays more than the federal minimum wage of $7.25 per hour but did not say how many of the companies 347,000 employees make less than $9 per hour.
Another Target spokesperson, Molly Snyder, reiterated the need to stay competitive to Fortune, adding: "As part of that, we regularly and continually evaluate the marketplace to make sure our wages are competitive."
The company's CFO, John Mulligan, had earlier said that any wage increase would not affect Target's profits.
CEO Brian Cornell had not confirmed whether Target would raise wages at a conference with investors in late February, according to Minnesota Public Radio News.
"Our goal is to make sure we have the very best team in retail," Cornell said. "And we're going to continue to invest in their development and make sure from a marketplace standpoint we're very competitive with the wages we provide."
However, analysts and researchers MPR News interviewed predicted Target raising its minimum as the trend continues through the retail business.
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