Some of Target's major competitors will be raising their minimum wage, but the Minneapolis-based retailer won't be following suit.
Wal-Mart kicked off a wage war after announcing last week it will start paying its lowest-paid employees $9 an hour by April, and increasing their pay to $10 an hour by next February.
Then this week the parent company of TJ Maxx and Marshalls said it would be doing the same, raising employee pay to at least $9 an hour this summer, and $10 an hour in 2016, NBC News reports.
But Target CEO Brian Cornell told investors Wednesday that he wouldn't be promising the same, MPR News says.
“We’re all the time assessing the marketplace to determine competitive wages,” Target Chief Financial Officer John Mulligan said, according to the Wall Street Journal. “We feel very confident that we’ll be paying the teams appropriately.”
Target officials wouldn't disclose how much employees are paid, but a spokesperson noted they do make above the federal, state and local minimum wages, the Huffington Post says. A Credit Suisse report, which looked at the pay of 985 workers, found Target pays roughly $9.06 an hour, The Associated Press reports.
Some retail experts say Target may be forced to publicly raise minimum wage like its competitors in order to attract and retain the best workers, reports note.
"A company like Walmart will combine that investment [of paying employees more] with some smart choices that will enable their employees to be more productive," Zeynep Ton, a professor at the MIT Sloan School of Management, told MPR News. "And when Wal-Mart does something, oftentimes others tend to follow."
In recent months other retailers, such as Gap and Starbucks, have announced an increase in minimum wage to boost employee loyalty, NBC News says.