Increasing wages for hourly workers has not yet hit the profits of big retailers.
The Wall Street Journal reports a number of the biggest retailers in America are still growing profits despite having had to increase wages to get more staff in.
Target, one of America’s biggest retail employers, said it plans to spend up to $300 million more on its workers, including pay increases and other benefits.
Hourly wages will range between $15 and $24.
Melissa Kremer, chief human resources officer, said: “Our team is at the heart of our strategy and success, and their energy and resilience keep us at the forefront of meeting the changing needs of our guests year after year.
“We continuously listen to our team members to understand what’s most important to them, then use the feedback to make investments that meet their needs across different career and life stages.”
Overall, employers spent four percent more in the fourth quarter of 2021, compared with the same period for the previous year, according to the Labor Department.
Economists also say workers are likely to benefit from annual wage increases for much of the next two years.
Many national retailers set pay ranges for roles that adjust for the cost of living in certain markets, and warehouse workers tend to earn more than employees that work in physical stores. Over the past year, retail and warehouse worker wages have risen as competition for workers climbs in a tight labor market.
Another giant, Costco Wholesale, is also planning to increase its starting hourly wage for store workers to $17.50.
Some workers could earn as much as $28.50 an hour.
Walmart revealed in September it would give its staff at least $12 an hour, and Amazon now starts all workers at least $15 an hour, with an average hourly wage of $18 an hour.
Andrew Gadomski, a managing director at Aspen Analytics, which who works with employers hiring high volumes of workers, said: “I think what companies are trying really hard to do is stabilize how much they are paying per box for labor so they can meet the needs of [Wall Street].
Target saw its profits up by by 33.1 percent after year-on-year rises in 2021.