Walmart said Thursday that it is raising hourly wages for more than 565,000 store workers by at least $1, as the retail industry faces a tighter labor market going into the holiday season.
Walmart U.S. Chief Executive John Furner said in a memo to staff that this marks the third investment the company has made in salaries in the past year. Walmart’s U.S. average hourly wage is now $16.40, he said.
Furner added that employees who work on the front end of Walmart stores and in its food and consumable department and general merchandise department will receive the higher wages, which will be effective Sept. 25.
Earlier in the week, Walmart announced plans to hire an additional 20,000 workers for its supply chain as it ramps up for the holidays and prepares for more people to shop online. In July, it said it would would also pay 100% of the costs of college tuition and books for its employees.