TJX Companies Inc., owner of discount retail stores Marshalls, Home Goods and T.J. Maxx, said on Wednesday that it would be raising its minimum wage to $9 an hour, soon after a similar move announced by Walmart.
The company will raise the wage in June, and is also set to boost the wages of workers who have been with the company for at least six months to $10 an hour in 2016, The Huffington Post reported. Walmart also announced in February that it would raise its wages to $10 an hour.
“This pay initiative is an important part of our strategies to continue attracting and retaining the best talent in order to deliver a great shopping experience, remain competitive on wages in our U.S. markets, and stay focused on our value mission,” Carol Meyrowitz, TJX’s CEO, said in a statement.
The current federal minimum wage is $7.25 an hour, an amount that President Barack Obama has proposed raising to $10.10 an hour. The move has been blocked by Congressional Republicans, The Washington Post reported. However, protests by labor groups have targeted companies such as Walmart and McDonald’s Corporation.
TJX does not disclose its current wages, but a report from Credit Suisse estimates that the retailer pays its workers about $8.24 an hour, The Associated Press reported. The company's stock closed up 3.31 percent on Wednesday.
As the number of retailers raising their minimum wage grows, it is expected to exert greater pressure on other companies to do the same. Executives from Target Corporation reportedly discussed the issue during the company’s earnings conference call, and said that while the company is assessing wage trends in the sector, recent moves by competitors have not changed Target's overall opinion on wages.
"Our goal is to make sure we have the very best team in retail," Target's CEO Brian Cornell told investors Wednesday, AP reported. "And we're going to continue to invest in their development and make sure ... we're very competitive with the wages we provide."
Correction: The wages of workers who have been with the company for at least six months will be raised to $10 an hour in 2016 and not this year, as the article originally mentioned. The article has been updated to reflect the changes.