NEW YORK — Walmart is further expanding benefits for its U.S. store managers as the nation’s largest retailer and private employer looks to retain its leaders and attract new ones in a still-competitive labor market.
Walmart, which is based in Bentonville, Arkansas, and has nearly 4,700 U.S. namesake stores, said Monday that U.S. store managers will receive up to $20,000 in Walmart stock grants each year starting in the new fiscal year, which begins Thursday.
Shares of Walmart are up 15% over the past 52 weeks, with the stock closing Friday at $164.27 — up nearly 1%, or $1.43, per share.
The moves follow an announcement by the discounter earlier this month that it would increase base pay for store managers, while redesigning its bonus plan to put more emphasis on profits among these leaders. The pay increase and bonus change will also take effect on Thursday.
Walmart said it has not made any changes to its store manager pay structure in more than a decade.
And while the turnover of U.S. store managers and the rest of the workforce has stabilized since 2022, the pressure on workers has increased. The acceleration of online services like BOPIS, for “buy online and pick up in stores,” since the pandemic has created more challenges for retail leaders as they balance inventory for both in-store customers and online shoppers.
Walmart said the amount of the annual stock grant is based on store size. U.S. managers of the sprawling supercenters, which span about 180,000 square feet, will receive $20,000 in equity grants. Those running the smaller Neighborhood Market stores – as well as the so-called “Division 1” stores, which sell mainly general merchandise – will receive $15,000 in stock grants. And those who run the Hometown stores, a smaller version of the Division 1 stores, will receive $10,000 in stock grants each year, the company said.
Walmart said the equity grants will vest over three years, with one-twelfth of the total grant amount vested each quarter. The grants will be awarded in April, which is the company’s traditional time for the compensation period.
“It’s fair to say we’re asking them to act like owners and think like owners,” John Furner, CEO of Walmart’s U.S. division, said in a call to reporters on Sunday. “And with this announcement, they will all be owners, and many of them own shares.”
In fact, Furner noted that Walmart has long had an employee stock program, where employees can purchase stock directly and then have the company match 15% of the employees’ purchases, up to $1,800 per year. However, Walmart is not offering a discount on the stock.
The new annual base salary for U.S. store managers will range from $90,000 to $170,000. Previously the range was between $65,000 and $170,000. That means the average base salary for store leaders will jump from $117,000 to $128,000, said Cedric Clark, executive vice president of store operations at Walmart’s U.S. division.
About 75% of store management started as hourly workers, Walmart said.
Walmart announced in January 2023 that U.S. workers would get raises the following month, increasing starting wages to between $14 and $19 per hour. Starting wages previously ranged from $12 to $18 per hour, depending on location.