Walmart said that it will raise the annual average salary and bonus for its US store managers beginning 1 February, taking the average hourly wage at the retail giant to more than $18.
Following the planned move, the average salary for store managers at Walmart will be at $128,000 a year from $117,000. The annual bonus could be as high as 200% of base salary, depending on targets achieved and profits made by the store, it added.
The company said 'the investments in front-line hourly associates and upcoming annual increases' will result in average hourly pay exceeding $18 from $17.50, announced in January last year.
The bonus redesign gives all US store managers the opportunity to earn an annual bonus that's up to 200% of their salary, the company added.
The latest development comes on the back of a solid rise in wages and a strong retail sales growth in December, as US employers hired more workers in a generally tight labor market.
Walmart has been investing in its store workers to retain more employees and in September announced a change in the wage structure to align the hourly starting pay across all job roles and departments.
At the end of fiscal 2023, Walmart employed around 1.6 million associates in the United States.
Elsewhere, Starbucks announced plans to raise the hourly pay for its US retail workers by at least 3% from 2024, and expand its store count amid strong demand for its coffees from younger and more affluent customer base.