BUSINESS

Target to raise worker pay to at least $9 an hour, report says

Target follows Walmart in raising worker pay to $9 an hour

Target Corp. plans to raise pay for workers to at least $9 an hour, following similar wage increases by retail rivals Wal-Mart Stores Inc. and T.J. Maxx parent company TJX Cos., according to a report.

The nation's third-largest retailer will implement the pay hike next month, Dow Jones reported.

Target spokeswoman Molly Snyder declined to comment on the report. The company does not disclose starting pay, she said, adding that the base varies depending on the locale.

"We want to make sure stores are offering locally competitive wages and benefits," she said.

A growing number of retailers are boosting compensation to retain workers as the economy improves. Retail and fast-food workers nationwide have been holding rallies to pressure companies to pay higher wages.

Last month, Wal-Mart said it was increasing wages for its workers to at least $9 an hour in April, and then $10 an hour in 2016. A week later, TJX said all of its U.S. employees will start earning at least $9 an hour in June and that those who have worked at least six months will get a raise to $10 an hour in 2016.

When the move was announced, TJX CEO Carol Meyrowitz said TJX sought to "remain competitive" with its pay in the U.S.

"This pay initiative is an important part of our strategies to continue attracting and retaining the best talent," she said in a statement.

Wal-Mart also described its decision as an effort to retain employees. The retail giant had also faced pressure over the last year from labor groups that held demonstrations and rallies calling for higher pay and more consistent hours.

Follow Shan Li on Twitter @ShanLi

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