Target announced Thursday that it’s bumping its minimum hourly wage to $13 in June, an increase of one dollar an hour for “tens of thousands” of current and future employees. The company says its goal is to hit $15 an hour by the end of next year.
The new minimum wage will apply to employees at the retailer’s stores, distribution centers, and at its Minneapolis headquarters.
“Our team is Target’s greatest asset, from the newest faces to those who’ve been with us for many years. They’re at the heart of everything we do to fulfill our purpose of bringing guests joy,” Melissa Kremer, Target’s new Chief Human Resources Officer, said in a post on Target’s Bullseye View blog.
“It takes a diverse, high-performing and engaged team to create experiences that make guests feel welcome and inspired, and keep them coming back. So investing in our team members is essential to keep our business growing and thriving,” Kremer said.
Staying ahead of competitors
In September of 2017, Target announced that it would raise its minimum wage to $11 as part of a larger goal to increase it to $15 an hour by the end of 2020. In March 2018, the retailer raised its minimum wage to $12 an hour.
By June, the company’s minimum starting hourly pay will be a full $2 higher than rival Walmart’s. Amazon, however, will still have Target beat with its hourly minimum of $15, which it established in November.
Responding to competition from Amazon, Target has been making moves to improve the experience for shoppers and employees. Over the past three years, the company has invested $7 billion in improving its operations. Improvements have included renovations and investments in technology to help the chain adapt to changing consumer shopping preferences.
Last year, Target said it was seeking to give guests “more ways to shop on their terms.” The retailer announced in June that it had expanded its pickup and delivery services in an effort to make Target the “easiest place to shop.”
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