Target to raise its minimum wage to $15 by 2020

Target to raise its minimum wage to $15 by 2020

In a fight for customers, companies will go to great ends to beat the competition. Following the initiative of Wal-Mart, Target has decided to raise its hourly wage once again. Target CEO, Brian Cornell, told the media last week that “making this investment in our Target team will allow us to continue to recruit and retain strong team members to serve our guests.”

In 2015, target’s wage was $9 an hour. In April of 2016, the wage was $10. Next month, the wage will increase to $11 per hour, but the company is committed to raising this to $15 an hour by the year 2020.

This wage comes in well above the federal minimum of $7.25 per hour and is in accordance with the union-led protests for a $15 minimum wage as illustrated in the “Fight for Fifteen” movement across industries. This movement originated after last November’s congress (dominantly controlled by Republicans) stated that the minimum wage will stay in the same general range as it is now.

This expected minimum wage raise is all part of the company’s overall $7 billion marketing and investment strategy announced earlier in the year as a way to “reinvent its business including remodeling stores, expanding its online services and opening up smaller urban locations.” 

Fortune reported that Target sales rose 1.3 percent and shopper store visits rose 2.1 percent. The online side of the company grew 32 percent which sheds some light on the productivity that comes from having digital sales.

Target hopes that this pay increase will force rivals such as Wal-Mart or Amazon to match the game and see who comes out on top. With the holiday season right around the corner, the company with already 323,000 employees hopes to add around 100,00 more seasonal staff to handle the influx of customers. Their increased minimum wage will not only be just for the year-round workers–it will include seasonal employees as well.

Featured image via Sickyicky

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