Walmart Responds to Changing Retail Structure, Increasing Pickups and Deliveries with Salary Hikes

Walmart (NYSE: WMT) today announced in a press release that it is increasing the salaries of approximately 165,000 of its associates. It has provided for increases not only in hourly minimums, but also in the possible range of pay for several positions. The pay rise is not happening in isolation, but is part of a restructuring effort launched by Walmart to accommodate the new post-coronavirus retail model, with much higher pickup and delivery demand as well as other changes.

The salary increase is directly linked to the introduction of what the company calls a “team operating model” in its supercenters, aimed at increasing the flexibility of individual stores to meet customers and local conditions. Walmart’s US COO, Dacona Smith, describes the new initiative as an initiative “creating small teams of associates who will receive cross-training and be given responsibility for the job and their field for everything. , stocks to visual standards “.

Image source: Walmart Inc.

Some of the new management positions will have titles such as “team leader”, “coach” and “store manager”. The teams will work together in the hope of fostering greater cooperation and better team spirit. The statement also links the concept of a team with the dramatically increased focus on pick up and delivery, which is likely to require more initiative and decision-making from employees than simply restocking shelves.

The company is offering incentives to successful team leaders to stay and keep their experience available to Walmart, and starting salary for new team leadership roles increases to $ 18 to $ 21. per hour, with possible increases to $ 30 per hour. At the same time, Walmart is increasing the minimum rate of pay for certain skilled hourly workers, including auto service workers and deli or bakery workers, from $ 11 to $ 15 an hour or more.

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