It will bump the rate to $15 an hour by the end of 2020.
The big-box retailer on Monday announced that it is raising its minimum wage from $10 per hour to $11 per hour, CNBC is reporting.
"This significant investment in its team will allow Target to continue to recruit and retain strong team members and provide an elevated experience for its guests and in the communities it serves", Target said in a statement. Target has always offered market competitive wages to our team members. The company is also spending $7 billion to remodel stores and open new locations, including on college campuses. The law mimics similar city- and state-wide ordinances across the country that phase in minimum wage increases up to $15 an hour, including in NY and California.
The number of retail job openings has steadily increased since 2010 and the national unemployment rate is at its lowest point in the last 16 years, making it more hard for retailers to hire sufficient numbers of temporary holiday workers. A number of cities have also adopted aggressive minimum wage ordinances as the union backed "Fight For 15" has gained momentum.
The minimum wage increase is not expected to impact Target's third-quarter and full-year financial results. The Wall Street Journal reported in January that Walmart's average salary is $13.69 an hour.
The new $11 an hour rate exceeds every state except MA and Washington, which both have an $11 hourly minimum, as well as the District of Columbia, which is set at $11.50. Democratic leadership introduced a bill in July to take the $15 minimum wage national, but the legislation failed to attract the requisite support to advance. The urban minimum wage experiments, enacted in Seattle and San Francisco, have strained the local economies as small businesses, particularly restaurants, struggle to adapt.