Walmart revealed on Thursday its decision to enhance the annual average salary and bonus for U.S. store managers, effective February 1. This strategic step aims to elevate the average hourly wage at the retail giant to over $18, reflecting the company’s commitment to investing in its workforce.
Following the planned adjustment, the average salary for store managers at Walmart will rise to $128,000 annually, up from the previous $117,000. The company also highlighted that the annual bonus could now reach as high as 200 percent of the base salary, contingent on achieving specific targets and the store’s profitability.
Walmart emphasized that these adjustments, coupled with investments in front-line hourly associates and upcoming annual increases, will result in the average hourly pay exceeding $18. This marks an increase from the $17.50 hourly rate announced in January of the preceding year, Reuters news report said.
The revamped bonus structure provides all U.S. store managers with the opportunity to earn an annual bonus of up to 200 percent of their salary, representing a notable shift in incentive programs within the company, Cedric Clark, Executive Vice President, Store Operations, Walmart U.S., said.
This development comes against the backdrop of robust wage growth and a substantial increase in retail sales in December, indicating a proactive response by Walmart to the evolving dynamics of the U.S. labor market.
Walmart’s ongoing commitment to investing in its store workers has been evident, with a significant shift in the wage structure announced in September, aligning hourly starting pay across all job roles and departments.
The retail and e-commerce giant, in November, revised its sales and profit forecast for fiscal 2024, attributing the positive outlook to an increasing number of customers prioritizing grocery shopping during periods of higher interest rates.
At the end of fiscal 2023, Walmart boasted approximately 1.6 million associates in the United States, reinforcing its position as a major employer in the country. The recent salary and bonus adjustments underscore the company’s dedication to retaining and incentivizing its workforce amidst a competitive labor market.
Walmart has reported operating income of $3.5 billion on sales of $160.8 billion during the third quarter of 2023.
