Walmart Inc. on Thursday announced what amounts to a more than 9% pay hike for its store managers, and a redesigned bonus program tied more to store profit.
In a note to store managers, the retailer said that a store manager’s yearly average salary would rise to $128,000 from $117,000, following a bigger investment in employee pay.
The company also said it was changing its bonus program.
“In addition to sales, your store’s profit will play a bigger role in calculating your annual bonus,” according to the note, from Cedric Clark, executive vice president of store operations at Walmart U.S. “If you hit all targets, your bonus could now be up to 200% of your base salary.”
The announcement was made after higher prices over the past two years have reshaped consumer demand, as shoppers sought a break from higher grocery prices and more-expensive essential items.
Wall Street, meanwhile, has been looking for signs that retailers can protect their profit margins or push them higher, as companies deal with their own higher costs and cut prices to clear items that, thanks to inflation, have become a lower priority for customers.
However, Walmart, to some degree, benefited from that shift, drawing wealthier customers, which one analyst recently said the chain would likely keep.
Shares of Walmart
were down fractionally after hours.