Thousands of Walmart Associates Just Got a Raise by This Much

Big-box retailer Walmart has done something very nice for many of its workers. The company has raised wages for 425,000 associates which represents about half of its U.S. workforce.

“We completed a strong year and a strong Q4 thanks to our amazing associates. They stepped up to serve our customers and members exceptionally well during a busy holiday period in the midst of a pandemic. Change in retail accelerated in 2020. The capabilities we’ve built in previous years put us ahead, and we’re going to stay ahead,” Walmart CEO Doug McMillon during the retailer’s fourth-quarter earnings results.

“Our business is strong, and we’re making it even stronger with targeted investments to accelerate growth, including raises for 425,000 associates in frontline roles driving the customer experience,” he added.

According to a memo sent to U.S. Walmart associates, which was obtained by Yahoo Finance, U.S. CEO John Furner has said the wages would increase to $13-$19 for the digital and stocking workgroups. The wage depends on location and market.

“This is an investment in our people, at the same time we make new investments in our supply chain, automation, and technology,” Furner said.

The nation’s largest retailer currently has about 730,000 U.S. store associates, approximately half of its workforce, earning $15 or more per hour.

It was last September that the company had raised wages for 165,000 of its hourly associates in its Supercenters. At the time, the retailer said its newly-created “team lead” roles would see a pay range between $18 and $21 an hour with the ability to go up to $30 an hour.

The company’s fourth-quarter earnings missed Wall Street’s expectations but e-commerce sales in the U.S. grew by 69% and its same-store sales in the U.S. grew by 8.6%.
For the three months ended Jan. 31, the retailer posted a loss of $2.09 billion, or 74 cents per share, compared with earnings of $4.14 billion, or $1.45 share, a year earlier.

Excluding these and other items, Walmart earned $1.39 per share, missing analyst estimates. Analysts surveyed by Refinitiv were waiting for $1.51 per share.

Total revenue grew by 7.3% to $152.1 billion from $141.67 billion a year earlier, topping Wall Street’s expectations of $148.30 billion.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.