Target Corporation, the eighth-largest retailer in the United States by sales, says it will increase the minimum wage of its U.S. workers to $13 an hour in June from $12.
In 2017, Target said it was committed to raising its minimum wage to $15 an hour by the end of 2020. The company previously raised its minimum hourly pay to $12 in March 2018 from $11. The wage increase will affect "tens of thousands" of employees, said a Target spokeswoman.
Target is also the fifth largest employer in the U.S. with more than 300,000 workers in 1,845 stores across the country.
Analysts say Target's unexpected move will eventually force Walmart, Inc. (the world's largest retailer and the largest private sector employer in the U.S.) to follow suit or risk losing workers to Target and other retailers that pay higher minimum wages.
Walmart has a long history of fighting calls for a higher minimum wage. Walmart currently pays entry-level workers a mere $11 an hour. Previous statements by Walmart management suggest the company has no stomach for increasing its minimum wage.
Last February, Walmart CEO Doug McMillon claims a Walmart worker earns $17.55 on average with wages and benefits.
"I'm comfortable that we've got the appropriate wage investments to get the talent we need," he said.
Other retailers don't see things the same way as Walmart, however. Costco Wholesale Corporation raised its minimum wage twice in a year and since March has been paying employees at least $15 an hour. Amazon.com Inc raised its minimum wage to $15 an hour in October 2018 after facing relentless and stern criticism over low pay and atrocious working conditions.
Amazon also said it will lobby Washington for an increase in the federal minimum wage to $15 an hour.
The $15 minimum wage movement has found wide support among Democrats but is resolutely opposed by Republican that places more value on the interests of the business community over that of its employees.
"Croissants at LaGuardia (New York airport) are going for seven dollars apiece," said Rep. Alexandria Ocasio-Cortez tweeted on April 1. "Yet some people think getting a whole hour of personal, dedicated human labor for $15 is too expensive?"
