Walmart (NYSE:WMT) is giving weekly bonuses to warehouse workers, as the retail giant competes in a tight labour market and ramps up for the holiday season.
The discounter is offering additional pay, based on the facility’s location and the worker’s role and shift. For some full-time workers, that will add up to $200 more per week and could be more if they work overtime, according to a Walmart spokesman. That extra pay began this month and will continue through the fiscal year at the majority of distribution and fulfillment centers, he said.
Walmart’s warehouse workers already have higher pay than store associates. Employees in distribution and fulfillment centers had an average hourly wage of $20.37, excluding drivers, higher than the average wage of $14.61 for Walmart U.S. at the end of 2020, according to the company’s environmental, social and governance report.
The company has since increased wages. As of March 2021, the company said the average hourly wage in the U.S. is over $15.25 per hour.
For Walmart, the added pay is also intended to get ahead of the rush of the holiday shopping season — and make sure store shelves and warehouses are stocked.
Walmart faces challenging year-over-year sales comparisons after strong sales during the pandemic. Plus, with the rise of the delta variant and changing consumer habits, more shoppers may want to ship packages to their doors or pick them up in the parking lot.
WMT shares added eight cents to $145.57.