Walmart announced Thursday that its U.S. store managers will get a raise in February, increasing the average hourly wage at the superstore to more than $18.
Beginning on Feb. 1, the current average salary for store managers of $117,000 will be raised to $128,000, the retail giant said. Additionally, the annual bonus could be as high as 200% of base salary, if managers meet certain targets and profit metrics.
Last year, Walmart said "the investments in front-line hourly associates and upcoming annual increases" will result in average hourly pay rising from $17.50 to more than $18.
The company has since redesigned its store manager bonus program, calculating sales and store profits to give managers an annual bonus of up to 200%.
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"The number one driver of job satisfaction is an associate’s manager, and we believe that you – our front-line leaders — are the best in retail," Cedric Clark, Executive Vice President of Store Operations for Walmart, wrote in a note to U.S. store managers. "Not only are you responsible for exceeding customer expectations day in and day out; each of you is the CEO of a multimillion-dollar business. And you’re the driving force behind the development of our next generation of leaders."
The latest development comes on the back of a solid rise in wages and strong retail sales growth in December, as U.S. employers hired more workers in a generally tight labor market.
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Walmart has been investing in its store workers to retain more employees and in September announced a change in the wage structure to align the hourly starting pay across all job roles and departments.
"As Walmart has continued to grow and evolve over the years, so have the jobs needed to support our business," a Walmart spokesperson told FOX Business at the time. "We’re in the process of updating our approach to campus office jobs to ensure we remain competitive in today’s environment, better reflect the work being done today, while streamlining job titles across our campus office roles."
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Walmart last year made a series of adjustments to its compensation and workforce requirements. The company announced in September that it would drop college degree requirements for some of the white-collar roles at its corporate headquarters in Bentonville, Arkansas.
Walmart also announced that it would lower the starting pay for personal shoppers and stockers — though the change didn’t affect current employees.
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Walmart’s minimum wage across the company is $14 an hour, although starting pay can be as high as $19 an hour depending on the store location.
The retail chain employs around 1.6 million associates in the United States.
FOX Business' Eric Revell and Reuters contributed to this report.
