Target and Wal-Mart are two major retailers that are polar opposites. They carry very similar products but the aesthetic and vibe of the two retailers are so different. You are either a Target person or a Wal-Mart person, you can not be both. Even though the two retailer giants may be different they are currently in a race for upping their minimum wages and Target just took the lead.
Today Target announced that they will be increasing their minimum wage from $10 an hour to $11 an hour for all their U.S. stores. This is a response to Wal-Mart who raised their minimum wage to $10 an hour in 2016.
Wal-Mart and Target have been going back and forth for some time with their minimum wage increases. It all started when Target raised theirs from the standard $7.25 to $9 an hour in April 2015, according to CNBC.
This isn’t the last time Target will increase their minimum wage. The mega retailer said that by 2020 their minimum wage will be $15 an hour. Target’s wage increases will start in October and will apply to the mass holiday workers they’ve hired.
Target’s CEO, Brain Cornell told CNBC that he wanted to make a “very definitive” and “very declarative” statement about the company’s commitment to its employees.
There is no telling if Wal-Mart will compete with Target’s long term minimum wage plan. But based on recent history I wouldn’t be shocked to see Wal-Mart make a similar statement.