Higher wages at Walmart: What’s the driving force?

Walmart (and some other retailers) recently announced starting wages in the $9-$10/hour range, depending on experience. The sheer size of Walmart helps redefine the “minimum wage” for the marketplace in an era of rising competition for opening-wage workers. But it’s not just about the falling unemployment rate, but also about the very real need for Walmart to improve its service levels.

Here’s my comment from a recent RetailWire discussion:

I agree with the comments about service as an underreported part of Walmart’s problems. Think about the issues discussed recently on RetailWire, regarding the challenges keeping fresh meat and produce on display, in a “lowest common denominator” service environment like Walmart.

The announcement yesterday about higher wages is a tacit acknowledgment of this problem, especially heading into an era of higher employment and labor shortages. It’s not accident that some of the highest-paying retailers (Costco, for example) have higher satisfaction ratings among both shoppers and associates. Maybe Walmart is finally figuring this out.

Advertisements

0 Responses to “Higher wages at Walmart: What’s the driving force?”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s





%d bloggers like this: