Target to raise minimum pay to $9/hour next month

Target plans to boost its minimum pay rate to at least $9 an hour starting next month, according to a report in the Wall Street Journal.

The paper reported that store managers have told workers about the wage hike, but Target isn't planning to announce the increase.

Target spokeswoman Molly Snyder said the company is always evaluating whether its wages are adequate for the various labor markets where Target operates.

Retail consultant Carol Spieckerman said Target is following Walmart's lead, as their competitor plans to raise wages for all hourly workers to at least $9 an hour next month and $10 early next year.

"If they had not done that, I think they would have continued to stand out like a sore thumb," Spieckerman said. "And it's just a practical concern, as well. Target has to attract talent and they can't afford to lose that retail talent to retailers who are paying more."

Target's chief financial officer recently said the company's wages would be competitive, but that setting a flat rate across the country is not reasonable.