Walmart is giving significant pay raises to some of its top managers, with certain market managers now earning up to $620,000 annually. These managers oversee about a dozen stores each. Their total compensation, which includes base pay, bonuses, and stock awards, will rise from a range of $320,000 to $420,000 on the lower end, and from $570,000 to $620,000 on the higher end, according to a Walmart spokesperson. The Wall Street Journal first reported the changes.
The starting base salary for the market manager position will increase by nearly 25%, reaching $160,000. The remaining increase in pay will come from stock grants and bonuses. Walmart stated that the market manager role is critical for the company’s success and in ensuring excellent customer service across its stores.
Walmart employs over 400 market managers, who are responsible for about 4,600 stores across the U.S. These mid-level managers typically work long hours and travel between stores to handle inventory, supervise employees, and address customer feedback.
This pay increase is part of a broader initiative by Walmart to invest in both hourly and salaried employees across its U.S. operations. Last year, Walmart also raised salaries for its U.S. store managers, with starting pay averaging $128,000, and revamped its bonus program to focus more on store profits rather than just sales.
Additionally, in 2024, Walmart introduced a bonus program for hourly workers, rewarding those who have been with the company for many years. Long-term employees can earn up to $1,000 based on their years of service, with the maximum bonus available for those who have been with Walmart for 20 years or more.
Walmart, the largest employer in the U.S., plays a significant role in shaping the labor market for hourly workers. Like many retailers, it has faced challenges in recruiting and retaining employees amid a competitive job market. To attract workers, Walmart has increased its hourly wages by about 30% over the past few years, raising its average U.S. hourly wage to nearly $18. Starting pay varies between $14 and $19, depending on the store and location.
Despite these challenges, Walmart’s business has been thriving. The company reported a 5% increase in sales at U.S. stores that have been open for at least a year, compared to the same period last year, and an 8% growth in profits.
Walmart has successfully attracted higher-income shoppers by expanding its grocery offerings and using its large scale to lower prices amid rising inflation. The company has also improved its selection of clothing, electronics, home goods, and other products. Additionally, Walmart has strengthened its online presence to compete with Amazon, with U.S. online sales growing by 22% in the last quarter.
Walmart is set to release its next earnings report in February.