Walgreens Boots Alliance announced on Tuesday that it will raise its wages for hourly workers in phases, with the goal of reaching $15 per hour by November 2022.
Its current starting wage is $10 per hour, but the company said around half of its 190,000 hourly workers earn at least $15 an hour.
The move comes as retailers compete for workers in a tight post-pandemic labor market. Earlier this month, competitor CVS Health raised its minimum wage and took away its education requirements for workers. CVS plans to incrementally raise its hourly pay to $15 from $11 by July 2022.
Walgreens said it will cost $450 million over the next three years to increase its pay. About a third of those costs will be incurred in FY2022.
“Investing in and rewarding our team members is not only the right thing to do, it’s highly important to retaining and attracting a talented workforce, and to continuing to serve our critical role in community health care,” said Walgreens CEO Roz Brewer in a press release.