Target Will Pay All Workers At Least $15 by 2020
For the third time in three years, Target has decided to increase its starting wage—this time to $11 an hour—while also making the long-term pledge to increase that amount to $15 an hour by the end of 2020.
The Minneapolis-based retailer made the announcement Monday as retailers nationwide are ramping up hiring efforts in preparation for the crucial holiday season. Earlier in the month, Target said it would look to bring on over 100,000 additional workers for the holiday period. All of those seasonal employees would be included in the $11 an hour increase, Target noted.
“Target has always offered market competitive wages to our team members,” Target CEO Brian Cornell said in a statement. “With this latest commitment, we’ll be providing even more meaningful pay, as well as the tools, training and support our team needs to build their skills, develop professionally and offer the service and expertise that sets Target apart.”
The last company-wide wage increase occurred in April 2016 when it lifted pay for its workers—now totaling 323,000 nationwide—to at least $10 an hour.
Target will surpass the $10.90 median hourly wage garnered by a retail salesperson in the U.S., according to the Bureau of Labor Statistics. Moreover, Target’s new starting pay rate will exceed the minimum wage in all but two states – Massachusetts and Washington.
The company’s move toward an even higher minimum wage by 2020 mirrors that of its hometown of Minneapolis, which this year passed an ordinance that will mandate a citywide $15 an hour minimum wage by 2024.
“Target has Minneapolis roots that go back more than a century, so it’s no surprise that they’ve got Minneapolis values,” Minneapolis mayor Betsy Hodges said in prepared remarks. “I’m thrilled that Target is seizing the opportunity of Minneapolis’ $15 minimum wage to raise the wages of their team members across the country… I hope it will spur other businesses, here and nationwide, to take similar steps to ensure that everyone who works full-time can earn a living wage and no one who works full-time has to live in poverty.”
Target doesn’t expect the move to cause much of a financial hit in the coming months. In its release Monday, it said comparable sales growth for the second half of its fiscal year would be “within the range” of the first half—or roughly flat, plus or minus 1 percent.