Walmart Raises Wages, but Still Falls Short of $15 Hourly Minimum

In a blog post coinciding with its Q4 earnings announcement, Walmart said it will raise the minimum wage for 425,000 employees in its digital and stocking departments to between $13 and $19 per hour “based on the store’s location and market.” Top line While a spokesperson noted the average wage for Walmart’s hourly workers will be $15.25 an hour once the raises go into effect on March 13, the keyword here is average. She noted that half of Walmart’s hourly U.S. workers—about 730,000 employees—will earn at least $15 per hour. By that same token, the other half will not, with some earning $11 per hour. Between the lines The raise comes amid growing cries for a national $15 per hour minimum wage. Amazon, which raised its minimum to $15 in 2018, has been one of the biggest advocates. In a recent blog post voicing support for the Raise the Wage Act, the ecommerce giant applauded other retailers—including Target, Best Buy and Costco—which have followed suit. Walmart, whose employees have been calling for a $15 minimum wage since at least 2019, is a notable exception. The Walmart spokesperson pointed to investments in employees’ “long-term success,” such as benefits and training. When asked why the retailer opted not to institute a $15 per hour minimum across the company, she shared prior comments from president and CEO Doug McMillon, who said the progression to $15 “should be paced in a way that's good for the U.S. economy.” “We've got about 75% of our store management that starts as hourlies,” McMillon said in prior comments. “The alternative [to raising wages for employees who have been with the company longer] would be to invest all of that to try and get to $15 faster. But if we did that, we wouldn't be able to create this succession that we're committed to creating.” Bottom line Walmart reported its Q4 U.S. comp sales grew 8.6% while ecommerce sales were up 69%, including 6 billion items through pickup and delivery. Total revenue was $152.1 billion, which was up 7.3%. The statement noted the retailer plans to invest nearly $14 billion in supply chain and automation in the coming fiscal year “to stay ahead of demand, improve the customer experience and increase productivity.” Inside Walmart’s Quest to Become the Go-To Retailer for Pickup and Delivery