Costco (COST) has increased the pay of its workers again to $17 per hour, up a $1 an hour from February.

The wage increase went into effect on Monday, Business Insider reported.

Costco’s minimum wage had been $15 an hour since 2019. When it raised it to $16 an hour in February, CEO W. Craig Jelinek called it “good business” as the increase helped to reduce turnover at its warehouse stores, the news outlet reported.

Jelinek continued by saying, “We're certainly not perfect, but we try to take care of our employees because they play such a significant role in our success.”

Costco’s pay increase comes as several retailers are being hit with a labor shortage.

Companies such as Amazon and Target have announced that they have raised the wages of their workers to $15 an hour to help retain employees, while Walmart increased the wage of 565,000 U.S. employees in September by at least $1 an hour.

Walmart’s starting wage is between $12 and $17 an hour, depending on the position.

Costco has thrived during the pandemic as consumers flock to the wholesale retailer. The company announced in August its plans to open 20 new stores in 2021, with locations coming this fall to Stafford, Texas; Duluth, Minnesota; Avon, Indiana; and Anjou, Quebec, in Canada.

The retailer reported September net sales of $19.5 billion, up 15.8% compared to the same five-week timeframe in 2020. It closed the fourth quarter of 2021 up 17.5% for net sales at $61.44 billion from $52.28 billion in 2020.

As of Wednesday at 9:41 a.m. ET, shares of Costco were trading at $488.61, up $3.08, or 0.63%.

Costco
People wait to shop at a Costco store on Feb. 20, 2021, in Austin. GETTY IMAGES NORTH AMERICA / JOE RAEDLE
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