Walmart follows rivals; hikes minimum wages as online demand sees robust growth due to coronavirus

The retailer said that it has increased the minimum entry wage of its workers at its warehouses by $2, following similar moves by rivals

Walmart on Monday said that it is temporarily raising minimum entry wages for its workers in its warehouses in a bid to manage the robust growth in shopping following the coronavirus outbreak. Walmart is the latest to join the long list of e-retailers like Amazon and Target who have recently hiked the wages of their workers after they witnessed surge in demand of necessary goods as people are going for panic buying.

E-commerce companies across the globe have been struggling to manage the surge in sales over the past one month, as an increasing number of people home and shopping online as the coronavirus crisis continues to halt life and businesses globally. This has seen e-retailers struggling to deliver products on time owing to a shortage of workers.

Walmart increases minimum pay

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A clown sits inside a bus seen in front of a Wal-Mart store in Mexico City January 11, 2013 Reuters

Walmart on Monday said that it will increase the entry wages for workers in it warehouses by $2, following similar moves by other e-retailers. The retail giant said that the hike will increase minimum wages to between $15 and $19 per hour at its warehouses. Walmart, the biggest retailer in the world, has been struggling for the past few weeks to both keep its shelves stocked at its physical stores as well as meet demands of online buyers.

Online shopping has witnessed a sharp rise over the past one month following the outbreak of the deadly coronavirus that has claimed more than 15,000 lives globally. Last week, the company said that it would be hiring 150,000 workers and paying special cash bonuses totaling $550 million to its temporary staff in its physical stores and warehouses through May.

E-retailers raise pay for workers

Online shopping
Online shopping Pixabay

Walmart, which employs 1.5 million people isn't the only retailer to raise pay of its temporary workers. Amazon, the biggest e-commerce company in the world, last week said that it will be increasing the pay of workers by $2 per hour through the end of April in the United States.

Target Corporation also said last week that it will be increasing minimum wages by $2. Alongside, both Amazon and Target also announced that they will be hiring around 100,000 and 9,000 workers at their fulfillment centers. E-commerce retailers have been trying their best to serve customers at this time of crisis, as more people are buying online.

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