Target raises minimum wage

Target (NYSE:TGT) has announced plans to raise the minimum wage for its workers to $9 per hour, starting in April. The retailer now joins Walmart (NYSE:WMT) and TJ Maxx (NYSE:TJX) in their recent commitments to raise employee wages.

The decision comes after pressure from groups pushing the "living wage" hike at retailers and fast-food companies around the United States, reported Reuters. Target was feeling the heat first from Walmart and then from the TJX Corporation, the parent company of TJ Maxx and Marshalls, and now the big-box retailer is giving in.

Other chains expected to raise their minimum wage include Walgreens, Rite Aid and CVS. The expectation is based in the fact that these companies are seeing solid returns in their business, and thus have the means with which to reward their employees.

Earlier this month, Target CFO John Mulligan said raising the minimum wage to $9 an hour would not be an attractive incentive to employees in costly cities such as New York. However, now that Walmart has taken the first step, many retailers will see increased pressure to appease employee advocacy groups and follow suit. 

The move comes just weeks after Target announced plans to cut $2 billion in costs by restructuring the company, which includes cutting jobs from Target stores as well as the company's headquarters.

For more:
-See this Reuters article

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