Target (TGT) - Get Target Corporation Report is permanently raising its minimum starting pay for hourly workers to $15. The retailer is following through early on a pledge it made in 2017 to increase its hourly wage to that amount by the end of 2020. It is beating its own goal by six months.
In addition, the company also temporarily raised its pay from $13 to $15 an hour during the coronavirus pandemic to reward its workers for their efforts during a particularly difficult time to work in retail. Target will now simply keep that minimum rate rather than lower it again, only to raise it by the end of 2020 as it had pledged to.
Target will also give $200 bonuses to employees for their work during the pandemic.
The retail company has seen a surge in sales during the pandemic, as buyers have flocked to its stores for essentials like food and cleaning supplies. The company's stock is up 36% over the past year.
Amazon (AMZN) - Get Amazon.com, Inc. Report raised its starting wage for hourly workers to $15 in 2018, and Costco's (COST) - Get Costco Wholesale Corporation Report minimum hourly wage was increased to $14 in 2019.
U.S. retail sales jumped a record 17.7% in May as consumers spent on clothing, automobiles, electronics, and more after a two-month shutdown of shops and stores.
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