Retailers such as Target, Ross, and Kohl's could increase their minimum wage, following the lead of Wal-Mart Stores and T.J. Maxx. During the past week, the two retail chains recently agreed to raise the minimum wages of their U.S. employees to $9 per hour.
A recent study by UBS AG, a Swiss financial services company, discovered that certain retailers could receive the most pressure to increase their minimum wage. They include Foot Locker Inc., Ross Stores Inv., and Finish Line Inc., according to Market Watch.
In addition, certain retailers that also hire several part-time, hourly employees might also take the same step. These include Kohl's Corp., a department store.
The report from UBS stated that the entire apparel industry could receive pressure to increase their wages. This is because Wal-Mart's action could increase "pay expectations" in the local markets of the retail industry.
According to figures from the U.S. government, 4.3 percent of all U.S. workers earn minimum wage or less than that figure. That includes 468,000 workers in the retail industry.
One of the issues in the figures that retailers are publishing is that they are based on the salaries of both hourly employees who are both part-time and full-time.
For example, Wal-Mart revealed that its full-time hourly employees earn an average of $12.85. Meanwhile, its part-time employees earn an average of $9.48.
Investors in the retail industry have voiced their interest in the issue of increasing the minimum wage in various chains. Market analysts believe that it is a natural result of the improvement in the U.S. economy.
Some companies do not seem interested in increasing their minimum wage. Brian Cornell, CEO of Target Corp. has stated that its wages are already "very competitive." However, it is also constantly trying to determine "competitive wages," according to The Guardian.
Kohl's and J.C. Penny also issued public statements that hinted that they also will not increase their minimum wage.