Costco doing something it hasn’t done in nine years

Costco Wholesale Corp. is raising entry-level wages for its hourly workers for the first time since 2007.



The move comes as other major retailers have been upping the minimum wages for their entry-level workers amid a tightening job market.



Starting this month, Costco will pay workers $1.50 more per hour in the U.S. and Canada. Workers will now earn at least $13 or $13.50 per hour, up from a minimum of $11.50 or $12 per hour.



“It will help, and it is important to do,” said Richard Galanti, CFO, Costco, on the chain’s quarterly earnings call. “This is a physically challenging job. You’re on your feet, lifting cases, moving carts, and we thought it was time to do it.”



The increase will cut its earnings per share in the next three months by 1 cent, and by 2 cents in the following three quarters, Bloomberg reported.



Costco’s highest hourly pay is about $22.50, and the company plans to give those workers about a 2.5% raise this year, according to the report.