Dive Brief:
- TJX Companies, Inc., parent company of TJ Maxx, Marshalls, and other stores, announced Wednesday that it will raise its minimum wage to $9 an hour starting in June.
- The company's minimum wage will increase to $10 an hour in 2016 after at least six months of employment with the company. The new policy will affect employees in 2,500 stores across the U.S.
- The news came in concurrence with TJX's fourth quarter earning report, which announced an increase in net sales, same-store sales, and net income over last year.
Dive Insight:
Wal-Mart seems to have set the precedent with last week's announcement that it would be raising its minimum wage to $10 an hour for current employees by 2016. With an improving economy and a wage increase for the bottom 10%, more retailers may feel pressure to follow Wal-Mart—and now TJX—with a minimum wage increase to retain talent and reduce turnover.
"This pay initiative is an important part of our strategies to continue attracting and retaining the best talent in order to deliver a great shopping experience for our customers, remain competitive on wages in our U.S. markets, and stay focused on our value mission," CEO Carol Meyrowitz said in a statement Wednesday.
