Walmart Inc. said the average store manager’s salary will rise to $128,000 from $117,000, as the world’s largest retailer looks to attract and retain workers in a tight labor environment.
In addition to the 9% raise, the company said it’s “redesigning” its bonus program for managers. Store profits will play a bigger role in calculating annual bonuses, Walmart said on its website. Bonus could now be up to 200% of managers’ base pay if all targets are met, according to the post by Cedric Clark, Walmart’s executive vice president for US store operations.
Walmart hasn’t made any change in pay for store managers in more than a decade, a company spokeswoman said. Previously, store sales were a major factor in determining bonuses, and managers could receive up to 150% of their base salary in bonuses.
Retailers have struggled with retention as workers increasingly face unruly customers and a rise in store theft.
While wages have broadly increased in recent years amid heightened competition for employees, there are signs that leverage is returning to employers, at least for some roles. Last year, Walmart lowered its starting pay for some new hires as part of a revamped wage structure. The lower rates affected online-order pickers, shelf stockers and other new employees.
About 75% of store managers started at Walmart as hourly employees, according to the company.
Walmart shares were up 1.3% in New York trading at 3:28 p.m. The stock rose 11% last year, trailing the 24% gain of the S&P 500 Index but outpacing the 2.2% decline in the S&P 500 consumer-staples index.
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