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Retailers’ Wage Increases to Attract Workers Aren’t Yet Denting Profits

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Starting in April, Target Corp. is enabling store associates who work at least 25 hours a week to enroll in a Target medical plan.
Photo: David Zalubowski/Associated Press

Target Corp. said it would pay some employees a higher starting wage and widen the range of people eligible for company health benefits, the latest move by the retail chain to attract and retain staff.

The Minneapolis-based retailer on Monday said its minimum hourly pay range would be between $15 and $24 for employees in its stores, supply-chain facilities and headquarters. The exact wage, Target said, will rely on industry benchmarking and local market dynamics, but that it seeks to be “a wage leader in every market where…

Target Corp.
said it would pay some employees a higher starting wage and widen the range of people eligible for company health benefits, the latest move by the retail chain to attract and retain staff.

The Minneapolis-based retailer on Monday said its minimum hourly pay range would be between $15 and $24 for employees in its stores, supply-chain facilities and headquarters. The exact wage, Target said, will rely on industry benchmarking and local market dynamics, but that it seeks to be “a wage leader in every market where it operates.”

Target said it would invest as much as $300 million in the bumps to pay and benefits for employees.

Starting in April the company is enabling store associates who work at least 25 hours a week to enroll in a Target medical plan, down from at least 30 hours a week. Target said the change will enable roughly 20% of staff to be newly eligible for the company’s healthcare benefits.

Many national retailers set pay ranges for roles that adjust for the cost of living in certain markets, and warehouse workers tend to earn more than employees that work in physical stores. Over the past year retail and warehouse worker wages have risen as competition for workers rises in a tight labor market.

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Write to Sarah Nassauer at [email protected]

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