Target Corp. will follow the strategy of its main competitor, Wal-Mart Stores Inc., and raise the minimum wage for all of its employees to $9 per hour, Dow Jones reported today.
The report said Target’s new minimum wage will take effect in April. Target store managers have been telling their workers about the wage increase in recent days, according to the report. Target has not publicly announced the increase.
The retail chains are citing the tightening labor market as a key reason for the wage increases.
Wal-Mart announced its higher minimum wage plan in February. BizTimes reported in its March 9 edition that Wal-Mart’s decision would likely have a ripple effect throughout the national retail industry, especially on Target Corp. and Menomonee Falls-based Kohl’s Corp.
Kohl’s spokesmen have not returned calls for comment.
The federal minimum wage of $7.25 per hour has not been increased since 2009. Twenty-nine states have increased their minimum wages higher than the federal minimum. Wisconsin Gov. Scott Walker is opposed to raising the minimum wage in his state.
