Sam's Club Raises Starting Pay to $16 to Compete with Costco

The wage increase affects nearly 100,000 employees and aims to improve retention and financial stability.

Sam's Club, owned by Walmart, will raise its starting wage for hourly workers from $15 to $16 per hour starting November 2, 2024.
The new compensation plan will accelerate wage increases, with annual raises between 3% and 6% based on years of service.
Sam's Club expects the average hourly wage for its employees to exceed $19, with potential for substantial annual bonuses.
The wage hike is part of a broader strategy to attract and retain employees in a competitive retail environment, especially against main rival Costco, which pays a starting wage of $19.50.
The changes come as retailers prepare for the holiday season, with Sam's Club emphasizing the importance of a stable and satisfied workforce for customer service and membership retention.