In amidst of ever increasing market pressure, Target Corporation (NYSE:TGT) has decided to increase the minimum wages to $9 per hour. The wage hike will be applicable from the month of April. Target’s decision has come at a time when most of the competitors have announced salary hikes for their employees.
Sudden Decision After Layout Announcement:
Recently it announced to cut another 1700 jobs and close out 1400 job openings concerning its $2 billion cost saving plans. Target didn’t want to enhance the minimum wages, but quite a few interest groups including a women advocacy group named UltraViolet pressured the company to increase its minimum wages. According to Target’s spokeswoman Molly Snyder, the company looks to offer competitive wages to its workers, but it doesn’t announce wage policies.
As per the reports, Target has announced wage hike right after its rival Wal-Mart Stores, Inc. (NYSE:WMT). Wal-Mart announced last month that it would elevate the minimum wages to $9 per hour in April. The company also announced that wages of all the current employees will be increased to $10 per hour in 2016. TJX Companies Inc (NYSE:TJX), another retail player also announced that it would increase minimum wages to $9 per hours, starting from June.
The Federal Minimum Wages per hour are currently around $7.25 per hour, but still a range of states pay more than this rate. As per the reports made public by Dow Jones, this target wage increment will affect all the 1800 stores in the United States. Target Corporation (NYSE:TGT) spokesperson states that the company has already announced to pay more than the minimum Federal Wages, and it’s still not clear as how many employees will be affected by this attempt.
As the news hit the market, Target’s shares closed higher than the previous close on Wednesday, but still light extended trading hurt it reasonably. It has not made any other announcement concerning the expansion of operations.