As of February, Walmart has increased salaries for store managers in the United States.

On Thursday, Walmart, the retail giant, declared its intention to raise the average annual salary and bonus for store managers in the United States, effective February 1. The objective is to elevate the average hourly wage at Walmart to exceed $18, with store managers’ average annual salary climbing from $117,000 to $128,000. The annual bonus, contingent on meeting targets and store profits, has the potential to reach up to 200 percent of the base salary.

These adjustments to the salary and bonus structure form part of Walmart’s strategy to invest in its front-line hourly associates. The anticipated impact of these changes is an increase from the previous year’s average hourly pay of $17.50 to over $18. The revamped bonus structure applies to all US store managers, offering them the opportunity to earn an annual bonus linked to their salary, potentially up to 200 percent.

Walmart’s decision aligns with the broader trend of companies prioritizing competitive compensation to attract and retain skilled employees. It reflects the company’s commitment to ensuring equitable compensation across various job roles and departments.

The robust wage growth and strong retail sales in the US labor market have led to increased hiring by employers. Walmart is responding to these market dynamics by enhancing its wage and benefit structures.

This salary and bonus adjustment is part of Walmart’s ongoing initiatives to invest in its store workers. In November, the company revised its sales and profit forecast for fiscal 2024, emphasizing the growing significance of grocery shopping, particularly during periods of higher interest rates.

With approximately 1.6 million associates in the United States at the end of fiscal 2023, Walmart aims to strengthen its market position by prioritizing employee well-being and satisfaction.

Following the announcement, Walmart’s shares responded positively, rising by 1.4 percent in late afternoon trade. The stock movement indicates a favorable market response to the news of enhanced wages for US store managers.

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