Sam's Club Boosts Starting Pay to Keep Pace With Costco
Sam’s Club will raise pay to incentivize workers to stay with the company — and not jump ship to Costco. Sam’s Club, the membership club arm of Walmart, will increase its minimum wage to $16 starting in November from $15 an hour. It will also raise wages for its nearly 100,000 employees, ranging from 3 percent to 6 percent depending on their tenure. Sam's club's main competitor is Costco, which pays among the highest wages in retail — a minimum of $19.50 an hour.
Total Retail's Take: The war for talent continues. In the world of club retail, where shoppers are paying a membership fee for the right to shop in those stores, companies must meet a higher standard for customer service than traditional brick-and-mortar stores that are open to all. And a key for top-notch customer service is retaining employees who are good at their jobs as well as attracting willing learners to be the next great store associates. Higher starting wages is a step towards accomplishing both of those goals.
