Walmart has announced an annual average salary and bonus increase for its U.S. store managers, effective February 1. This move will raise the average hourly wage at the retail giant to over $18.
The average salary for store managers will be elevated to $128,000 annually from $117,000, with the opportunity for an annual bonus of up to 200% of the base salary based on store performance and profitability.
Investments in Front-Line Hourly Associates Also Contributing to Pay Increase:
Walmart mentioned that the ongoing investments in front-line hourly associates and the upcoming annual increases will result in the average hourly pay exceeding $18.
This is an improvement from the $17.50 hourly wage announced in January of the previous year. Redesigning the bonus structure allows U.S. store managers to earn an annual bonus of up to 200% of their salary.
Walmart’s Strategy to Retain Employees:
Walmart has been investing in its store workers to enhance retention amid a tight labor market.
The company adjusted its wage structure in September, aligning hourly starting pay across various job roles and departments.
This move comes as the retail giant aims to prioritize the well-being and compensation of its employees.
Positive Impact on Walmart’s Fiscal Outlook:
The decision to increase wages follows a robust wage rise and strong retail sales growth in December, with U.S. employers hiring more workers.
In November, Walmart raised its sales and profit forecast for fiscal 2024, anticipating increased customer focus on grocery shopping amid higher interest rates.
The positive developments are reflected in a 1.4% increase in Walmart’s shares in late afternoon trade.