Target to increase minimum hourly wage to $10 in US

18 April 2016 (Last Updated April 18th, 2016 18:30)

US discount retailer Target is set to increase its minimum wage to $10 an hour, after other firms made similar moves due to growing competition to secure workers at low wages.

US discount retailer Target is set to increase its minimum wage to $10 an hour, after other firms made similar moves due to growing competition to secure workers at low wages.

This will make Target's new hourly rate match with the mimimum paid by Walmart to its employees, reported The Wall Street Journal.

Last year, the firm increased its hourly rate to $9 after Walmart pushed up the minimum wage.

"We pay market competitive rates and regularly benchmark the marketplace."

As of 30 January, Target employed 341,000 full-time, part-time and seasonal workers.

Citing sources, Reuters reported the increased hourly rate will come into effect from May.

ABC News reported Target spokeswoman Molly Snyder as stating: "We pay market competitive rates and regularly benchmark the marketplace to ensure that our compensation and benefits packages will help us to both recruit and retain great talent."

In areas with high-living costs, its hourly wages already begin at more than $9.

Minneapolis-based Target has 1,800 stores across the US.