Target Corporation (NYSE: TGT) on Monday announced to raise minimum wage to $11 per hour next month, and boost it to $15 an hour by 2020.
The wage increases come ahead of the holidays season. The retailer said the increase will apply to the 100,000 seasonal workers that plans to hire for the holidays. But the company didn’t provide further details about whether it will apply to the regular employees.
Target’s wage increase has put the company into a wage war with Wal-Mart Stores Inc. (NYSE: WMT). Target had raised its minimum hourly wage to $10 from $9 in April 2016, soon after its rival Wal-Mart increased its minimum wages.
The retailer also said the minimum wage will be boosted to $15 per hour by 2020. The announced also came after Democrats recently introduced a $15 minimum wage bill.
Despite the wage increases, the company reiterated its projection of sales and earnings for the third quarter and the full year.
This is a tough year for the retailers. Target shares price fell nearly 19 percent this year. Target not only faces the wage war from Wal-Mart, it also faces strong competitions from e-commerce as more and more people choose to shop online.