(This Jan. 18 story has been corrected to remove the reference to hourly wages in paragraph 1)
(Reuters) – Walmart said on Thursday that it will raise the annual average salary and bonus for its U.S. store managers beginning Feb.1.
Following the planned move, the average salary for store managers at Walmart will be at $128,000 a year from $117,000. The annual bonus could be as high as 200% of base salary, depending on targets achieved and profits made by the store, it added.
The company said “the investments in front-line hourly associates and upcoming annual increases” will result in average hourly pay exceeding $18 from $17.50, announced in January last year.
The bonus redesign gives all U.S. store managers the opportunity to earn an annual bonus that’s up to 200% of their salary, the company added.
The latest development comes on the back of a solid rise in wages and a strong retail sales growth in December, as U.S. employers hired more workers in a generally tight labor market.
Walmart has been investing in its store workers to retain more employees and in September announced a change in the wage structure to align the hourly starting pay across all job roles and departments.
The retailer in November raised its forecast for sales and profit for fiscal 2024 as more customers prioritize grocery shopping at times of higher interest rates.
At the end of fiscal 2023, Walmart employed around 1.6 million associates in the United States.
Shares of Walmart were up 1.4% in late afternoon trade.
(Reporting by Savyata Mishra in Bengaluru; Editing by Shailesh Kuber)
