As reported by The Wall Street Journal, Wal-Mart Stores Inc. plans to boost the pay of all its U.S. employees to at least $9 an hour by April. This raise would top the federal minimum wage by 24 percent and take a bite out of the company’s profit this year. Wal-Mart has stated that the investment in higher wages and better training will cost the company.
The wage announcement came as Wal-Mart reported a relatively strong holiday season, with sales at its core U.S. business up 1.5 percent. For the quarter ended January 31, Wal-Mart reported earnings of $4.97 billion, up from $4.43 billion a year earlier, while revenue rose 1.4 percent to $131.6 billion.