BENTONVILLE, Ark. - Walmart announced Thursday that it will raise the base pay and redesign its bonus plans for store managers.
According to the nation’s largest retailer, the company will simplify and increase store manager wages. With this investment and upcoming annual increases, Walmart said a store manager’s average salary will increase from $117,000 to $128,000 a year.
The Arkansas-based company also said it will redesign its store manager bonus program.
In addition to sales, the profit from the store that the manager leads will play a larger role in calculating their annual bonus. If a manager hits all targets, the manager’s bonus could increase to up to double their base salary. Previously, it was up to one and a half times the manager's base salary.
The Walmart logo is seen outside a Walmart store in Burbank, California on August 15, 2022. (Credit: ROBYN BECK/AFP via Getty Images)
"We see an investment in you as an investment in our culture, our core values and in the day-to-day experience of every associate in every store. Investing in you is an investment in our future," Cedric Clark the executive vice president of store operations said in a note to Walmart U.S. store managers on Jan. 18.
The move will be effective Feb. 1.
Walmart also said that average wages for hourly workers would exceed $18, up from $17.50, as a result of its investments in front-line hourly associates and upcoming annual increases. Roughly 75% of its store management started out as hourly workers, Walmart said.
Walmart announced in January 2023 that U.S. workers would get pay raises the following month, increasing starting wages to between $14 and $19 an hour. Starting wages had previously ranged between $12 and $18 an hour, depending on the location.
This story was reported from Los Angeles. The Associated Press contributed.