T.J. Maxx, Marshalls to raise pay

Associated Press

NEW YORK

The owner of T.J. Maxx, Marshalls and HomeGoods stores became the latest retailer to boost pay for its U.S. workers, putting pressure on other chains to do the same.

TJX Cos. said Wednesday that it will increase pay for its U.S. workers to at least $9 an hour starting in June. The announcement came a week after Wal-Mart Stores Inc. said it would increase starting wages for its U.S. employees to at least $9 per hour by April and to at least $10 by February 2016. Home furnishings retailer IKEA and Gap clothing chain also have raised pay recently.

John Challenger, CEO of global outplacement firm Challenger, Gray & Christmas Inc., said the moves could create a domino effect in which other companies follow suit in order to compete for top talent.

“Other retailers may have no other choice but to follow,” he said. “The pool of available labor is starting to shrink, and it will take more than a store discount to attract the best of available candidates.”