Walmart Inc. announced on Thursday announced what amounted to a more than 9% pay increase for its store managers, tying a redesigned rewards program more closely to store profits.
In a note to store managers, the retailer said the average annual salary for a store manager would rise to $128,000 from $117,000, after a greater investment in staff wages.
The company also said it would change its rewards program.
“In addition to sales, your store profits will play a larger role in calculating your annual bonus,” according to the memo from Cedric Clark, executive vice president of store operations for Walmart US. “If you achieve all the goals, your bonus can now be up to 200% of your basic salary.
The announcement came after rising prices over the past two years reshaped consumer demand, as shoppers sought a break from high grocery prices and more expensive basic items.
Meanwhile, Wall Street has been looking for signs that retailers can protect or push up their margins, as companies grapple with their rising costs and cut prices to settle on items that, thanks to inflation, have become a lower priority for customers.
However, Walmart has, to some extent, benefited from the shift, attracting wealthier customers, which one analyst recently said the chain is likely to retain.
Walmart WMT shares,
It decreased slightly after hours.
