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Walmart raising pay for 425K employees starting March 13 – Portland, Oregon

Portland, Oregon 2021-02-22 13:10:27 –

File – This June 25, 2019 file photo shows the entrance to Wal-Mart in Pittsburgh. (AP Photo / Gene J. Puskar, file)

New York (AP) — Wal-Mart is raising wages for 425,000 of the 1.5 million U.S. workers this year as the U.S.’s largest retailer responds to the massive industry changes accelerated by the pandemic. Has invested $ 14 billion to speed up its distribution network.

Walmart Inc. reported Thursday’s fourth-quarter performance was mixed. It went into the red due to pandemic-related costs and the sale of the Japanese and UK divisions. However, sales surged 7.4% during the period, including the important holiday shopping season. Sales at opened stores increased 8.6% from 6.4% in the previous quarter.

Online sales surged 69%, down from the 80% surge in the previous period, the slowest growth since the pandemic began. The company also said it expects overall sales to settle this year. Stocks fell almost 6% in early trading.

The steepest daily sale in almost a year.

Wal-Mart has been working hard on fast and convenient deliveries during the pandemic. But even the large-scale infrastructure set up by Wal-Mart in recent years has been strained by the flood of orders from millions of people evacuating to their homes.

This means more spending on dealing with shoppers who are more and more accustomed to shopping at home. This year, the company announced plans to build a warehouse in a store where customers receive groceries that self-driving robots pick up in less than an hour. And that was before Thursday’s announcement that it was pushing up related spending by $ 14 billion.

“Retail changes accelerated in 2020,” said CEO Doug McMillon. “The features we have built over the last few years have led us and we are going to stay ahead. Our business is strong and even stronger with targeted investments to accelerate growth. I am doing it. “

Wal-Mart said Thursday that it has raised its average hourly wage from over $ 14 an hour to over $ 15 an hour. Pay raises focus on the role of online and stockings. From March 13th, wages for workers in these jobs will increase from $ 13 to $ 19 per hour, depending on the location of the store.

Wal-Mart raised its starting hourly wage from $ 9 to $ 11 a while ago, but that starting hourly wage remains the same. Amazon and Target have already raised the hourly wages of all workers to $ 15.

Walmart Inc. lost $ 2.09 billion, or 74 cents per share, compared to last year’s fourth-quarter profit of $ 4.14 billion, or $ 1.45 per share. Adjusted earnings per share was $ 1.39, well below Wall Street’s expectations of $ 1.51, according to a FactSet study.

Chief Financial Officer Brett Bigs will be hit by $ 1.1 billion from pandemic-related costs, leading to a temporary outflow of approximately 37 cents per share, in addition to temporary claims from Japan and the United Kingdom. Said.

Walmart Announced at the end of last year Eighty-five percent of Seiyu, a Japanese supermarket subsidiary, will be sold for 172.5 billion yen ($ 1.6 billion).It came a month later Sale of British supermarket chain Asda Although it is a minority shareholder, it is £ 6.8 billion ($ 8.8 billion).

Wal-Mart’s wage costs have also increased as workers have more time to ensure a smooth holiday season.

Net sales reached $ 150.98 billion, surpassing industry analysts’ forecasts of $ 148.5 billion and easily surpassing last year’s $ 140.6 billion in fourth-quarter sales.

Wal-Mart is becoming one of the largest distributors of the COVID-19 vaccine, as the United States relies heavily on pharmacies. Wal-Mart operates more than 5,000 pharmacies, of which more than 4,000 are in areas designated by the government as “insufficient medical services” or where pharmacy options are limited.

Walmart raising pay for 425K employees starting March 13 Source link Walmart raising pay for 425K employees starting March 13

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