Walmart, the retail giant, announced on Thursday its decision to increase the annual average salary and bonus for US store managers, effective February 1.
The move aims to boost the average hourly wage at Walmart to over $18, with the average salary for store managers rising from $117,000 to $128,000 annually. The annual bonus, based on meeting targets and store profits, could reach up to 200 per cent of the base salary.
The adjustments to the salary and bonus structure are part of Walmart’s strategy to invest in its front-line hourly associates. The average hourly pay, which was $17.50 in January of the previous year, is expected to exceed $18 with this change.
The new bonus structure extends to all US store managers, offering them an opportunity to earn an annual bonus linked to their salary, potentially up to 200 per cent.
Walmart’s decision follows a broader trend where companies are prioritising competitive compensation to secure and retain talented employees. The move aligns with the company’s commitment to providing equitable compensation across all job roles and departments.
The US labour market has experienced robust wage growth and strong retail sales, contributing to increased hiring by employers. Walmart is adapting to these market dynamics by enhancing its wage and benefit structures.
This salary and bonus adjustment is part of Walmart’s ongoing initiatives to invest in its store workers. In November, the company raised its sales and profit forecast for fiscal 2024, highlighting the growing importance of grocery shopping, particularly during periods of higher interest rates.
Walmart, with approximately 1.6 million associates in the United States at the end of fiscal 2023, seeks to reinforce its position in the market by prioritizing employee welfare and satisfaction.
Shares of Walmart responded positively to the announcement, rising by 1.4 per cent in late afternoon trade. The stock movement indicates a favourable market response to the news of enhanced wages for US store managers.
(With inputs from Reuters)
