TJX Companies, the parent of T.J. Maxx, Marshalls, HomeGoods and Sierra Trading Post, is following in the footsteps of Gap Inc. (last year) and Walmart (last week) by giving its hourly workers a raise. The company announced plans yesterday to increase its starting wage to $9 an hour this year, moving up to $10 an hour for all associates who have been on the job at least six months at some point in 2016.
"At TJX, we attribute our success over the last 38 years primarily to the people we have hired who have remained focused on our mission of delivering consumers amazing values," said Carol Meyrowitz, CEO of TJX, in a statement. "This pay initiative is an important part of our strategies to continue attracting and retaining the best talent in order to deliver a great shopping experience for our customers, remain competitive on wages in our U.S. markets, and stay focused on our value mission."
TJX's decision to grant raises to its hourly workers, as acknowledged by Ms. Meyrowitz, will likely be seen as a "keeping up with the Joneses" move. Many predicted that last week's announcement by Walmart, in particular, would force other retailers to change their compensation levels. For its part, Target doesn't appear as though it is ready to play. The company, which doesn't publicly discuss what it pays its hourly workers, could be at a disadvantage in acquiring talent if better paying jobs are to be had elsewhere.
"It's not that Walmart suddenly became benevolent," Russell Price, a senior economist at Ameriprise Financial, recently told the Star Tribune. "Wages are starting to percolate. To hang on to good employees, this is something they had to do. Target will, too."
While a lot of emphasis is being placed on the $9 starting point, notable retailers such as Costco, IKEA, Trader Joe's and Whole Foods are already paying higher wages — sometimes significantly higher — for entry-level workers.