Target Corporation is an American retailing company that was founded in Minneapolis, Minnesota, in 1902. The company is the second-largest discount retailer in the United States, behind Walmart, and a component of the S&P 500 Index.
Target operates 1,839 stores across the United States. The corporation’s marketing department has announced that Target will pay a starting wage of $15 per hour for all U.S. store employees, effective July 2020.
The move comes as retailers are under pressure to raise wages in the tight labor market. Target had previously raised its minimum wage to $11 an hour in 2017 and then to $13 an hour last year. The company said the new $15-an-hour starting wage will apply to more than 275,000 workers.
“We’re making investments in our team because we know they’ll pay off for our guests,” Brian Cornell, Target’s chairman and chief executive officer, said in a statement.
Target isn’t the only retailer increasing its starting pay. Walmart raised its starting hourly wage to $11 last year and said it would give workers bonuses of up to $1,000 based on their length of service. Costco also bumped up its entry-level pay to $14 an hour last year.
Conclusion:
Based on the information provided in the article, it appears that Target does plan to pay $15 an hour starting July 2020. This is likely due to pressure from other retailers who have already increased their own starting wages. As the labor market continues to tighten, it seems likely that other retailers will follow suit and increase their own wages in order to attract and retain employees.
