The Blubber

Walmart, $WMT, is raising averge store manager wages from $117,000 to $128,000, with store manager bonusus could now be up to 200% base pay, per Reuters.

In addition to implementing a 9% salary increase, Walmart has announced a "redesign" of its bonus program for managers. The calculation of annual bonuses will now place greater emphasis on store profits, according to Cedric Clark, Walmart's executive vice president for US store operations. The revised bonus structure could potentially allow managers to earn up to 200% of their base pay if specific targets are achieved.

This marks the first pay adjustment for store managers at Walmart in over a decade, with previous bonuses tied predominantly to store sales, offering managers a potential bonus of up to 150% of their base salary. The retail industry, grappling with challenges like confrontational customers and increased store theft, has faced retention issues among its workforce. Although overall wages have seen an uptick due to intensified competition for talent, some employers, including Walmart, have demonstrated renewed leverage by adjusting pay structures for certain roles.

Last year, Walmart revised its starting pay rates for certain new hires as part of a broader wage structure overhaul, affecting roles such as online-order pickers and shelf stockers. Approximately 75% of Walmart store managers began their careers as hourly employees within the company. As of trading at 3:28 p.m., Walmart shares were up 1.3% in New York, having risen 11% the previous year, which, while trailing behind the S&P 500 Index's 24% gain, outpaced the 2.2% decline in the S&P 500 consumer-staples