Walmart is making good on its promise to increase wages for its employees next year as part of its $2.7 billion investment announced last February.
Starting in February 2016, the retailer will boost entry-level pay for workers nationwide to $10.00 an hour, $2.75 an hour above the federal minimum wage. Employees hired on or after January 1, 2016 will start at $9 and will move to at least $10 after successfully completing Walmart’s new Pathways training program.
Earlier this year, Walmart announced that it would increase wages to $9.00 an hour in 2015.
The move will affect approximately 500,000 of the more than 1.4 million workers that are currently employed at the retailer’s 5,000 stores and clubs. Walmart says on its website that the average, full-time hourly wage for workers in the U.S. is currently $12.96.
The results from the wage hikes this year have been promising, but it’s still unclear how this investment will pan out in the long run. In its most recent Q3 2016 earnings report, the company said that customer experience scores continued to strengthen and comparative-store sales were positive for the fifth consecutive quarter. As we previously reported, however, Walmart announced that it would be cutting back its forecast along with a prediction that its profit would decline in fiscal 2016.
For more on how this multi-billion dollar investment will affect Walmart’s financial performance in 2016, stay tuned to DeliMarket News.