The Target Corp. announced Monday an hourly minimum wage hike to $11 beginning next month, followed by an increase to $15 by 2020.
"Target has always offered market competitive wages to our team members", said Brian Cornell, CEO and chairman of Target. "With this latest commitment, we'll be providing even more meaningful pay, as well as the tools, training, and support. that set Target apart".
Upping the minimum wage at stores would bump Target above other retailers such as Walmart, which began raising its minimum wage to $10 an hour a couple years ago. Last May, Target raised the wage again to $10.
The size of that investment is known only to Target for the moment, but it comes on top of the $7 billion that the company is already spending to refurbish stores and open new locations in cities and on college campuses. The increase also applies to the over 100,000 seasonal employees Target is hiring for this year's holiday season.
The retail giant employs more than 300,000 hourly employees, both at stores and distribution centers. Global Positioning System have all boosted their own hourly pay for workers. The Wall Street Journal reported in January that Walmart's average salary is $13.69 an hour.
According to Target, a minimum hourly wage of $11 is higher than the minimum wage in 48 states, and matches the minimum wage in MA as well as Washington.
Virginia's minimum wage has been $7.25 since 2009, mirroring the national minimum. That number gained serious traction during the last presidential campaign, and Democrats recently introduced a $15 minimum wage bill that is backed by Sen. The following year, Target raised its minimum wage to $10 an hour. The urban minimum wage experiments, enacted in Seattle and San Francisco, have strained the local economies as small businesses, particularly restaurants, struggle to adapt.