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Walmart’s Sam’s Club to raise hourly pay for 100,000 workers from November

(Reuters) – Walmart-owned Sam’s Club said on Tuesday it would raise average hourly wages for nearly 100,000 of its workers, as part of a new employee compensation plan that will come into effect ahead of the holiday season rush.

Wages for its entry-level workers will now start at $16 per hour from $15 that was set three years ago, it said.

The company also said hourly wages will grow at a “faster” clip, rising to between 3% and 6% based on years of service that would allow workers to quickly attain the maximum pay rate for their given position.

As a result, Sam’s Club expects the average hourly rate for its workers to be above $19, excluding bonuses. The new pay plan will be effective Nov. 2.

“In an increasingly competitive retail landscape, attracting, hiring and, more importantly, retaining quality talent has become a true competitive advantage,” Sam’s Club said.

The warehouse club chain, a rival to membership-only retailer Costco, has seen sales growth in almost every category in the past few quarters, after underperforming for years.

There are over 600 Sam’s Club locations across the U.S. and Puerto Rico.

Walmart, which raised wages for its store workers earlier this year, said on Monday that its holiday hiring plans would be consistent with the past few years. The retail bellwether hired about 40,000 seasonal workers in 2022.

(Reporting by Savyata Mishra in Bengaluru; Editing by Anil D’Silva)