Sam’s Club will raise pay to catch up with Costco [Video]

NEW YORK — Sam’s Club said Tuesday it will raise pay to incentivize workers to stay with the company – and not jump ship to Costco.

Sam’s Club, the membership club arm of Walmart, will increase its minimum wage to $16 starting in November from $15 an hour.

It will also raise wages for its nearly 100,000 employees, ranging from 3% to 6% depending on their tenure.

Sam’s Club charges customers $50 for a regular membership. To keep and grow its membership, Sam’s Club must meet a higher bar for customer service than retailers open to everyone. Sam’s Club hopes a steady workforce of higher-paid employees with financial incentives to stay with the company will lead to improved service. Its main competitor is Costco, which pays among the highest wages in retail – a minimum of $19.50 an hour, and Sam’s Club needs to raise its pay to stay competitive with Costco and …