Starting in June, T.J. Maxx, Marshalls, and HomeGoods will start paying their U.S. workers a higher minimum wage of $9 per hour. This matches the amount that Wal-Mart Stores Inc. implemented earlier this February.
Costco Wholesale Corp. has made the same move. Gap, the biggest apparel retailer in the U.S., increased its minimum wage to $9 in June.
In 2016 the companies of TJX Cos. will increase salaries to $10 for certain employees, according to Bloomberg. Such employees must have at least six months of employment with the company.
The announcement indicates that the labor market is becoming more competitive. The pay increases will help to lower hiring and training expenses. They will also reduce turnover rates.
According to TJX's Chief Executive Officer, the company is increasing its minimum wage in order to find and keep the best talent available. It also hopes to stay competitive with other retailers.
In fact, other retailers might be forced to boost their minimum wage in order to remain competitive, according to Yahoo. The retail industry supports about 25 percent of U.S. jobs.
President Obama has praised the minimum wage increase of Wal-Mart and TJX. In addition, the White House believes that a higher minimum wage now has growing support.
However, in general the retail industry has opposed increasing wages. It argues that such wages could require a smaller workforce or higher prices.
TJX's stocks recently closed at $69.38, its largest one-day gain in half a year. In fact, last year shares of the company's stocks rose 7.6 percent.
The recent slowdown occurring at West Coast ports will also benefit TJX. This has allowed it to purchase more inventory.