Additionally, the Bentonville, Ark. -based mega-retailer is creating a new benefit to help associates with adoption expenses.
The company is also trying to improve customer service in its roughly 4,700 stores around the United States, many of which have shown signs of low employee morale and untidiness.
Walmart's new pay hike, purportedly inspired by the recent cut in the USA corporate tax rate, is a little less than real largesse.
Currently, Walmart's starting wage is $9 an hour, which bumps up to $10 after employees complete a training program, per CNBC.
The wonder, even so, is that Walmart didn't do more.
Walmart's wage increases are coming as state and local minimum wages are rising. It's an increase from eight weeks of maternity leave and two weeks of paternity leave.
The new wages start February 17, 2018 and apply to hourly associates in USA stores, Sam's Clubs, logistics and Home Office. At the same time, Target made a commitment to raise its base wage to $15 an hour by the end of 2020. And New York, Arizona, Colorado, Maine and OR will all reach that level next year, as efforts at the state level to boost livelihoods have gained steam. Costco has had a minimum wage of $13.50 as of 2016.
Brevard County's unemployment rate has also plummeted from 6.9 percent in January 2015 to 3.6 percent in September 2017. And there's more competition from online retailers, which typically pay warehouse employees who pack and ship orders more than stores pay. An increase in Walmart's starting wage rate to $11 an hour on top of planned wage increases in select markets. Costco Wholesale Corp. and other retail chains like TJX Cos. have also raised wages in recent years. The wage increases are expected to cost the retail giant $300 million in what they are already planning for the upcoming fiscal year. A full-time salary of $11 an hour amounts to about $19,000 a year, which is below the national poverty level of $20,420 for a family of three. Wal-Mart Stores had a return on equity of 16.92% and a net margin of 2.31%.
Wells Fargo & Company reissued their market perform rating on shares of Wal-Mart Stores, Inc.
Walmart said it is early in the process of assessing potential additional investments.
That, in turn, could boost US economic growth overall and strengthen a USA inflation rate whose weakness has bedeviled the Fed for the last five years.
CEO Doug McMillon said in prepared remarks that it would be "clear and consistent" for the company to put more money toward goals such as lower prices and technology upgrades.
There's been another round of good economic news and this one hits close to home. Salaried associates will also receive six weeks of paid parental leave.
But the company also is closing some Sam's Club locations, including ones in Lumberton and Morrisville.