By Dhirendra Tripathi
Investing.com – Walgreens stock (NASDAQ:WBA) rose 3.2% Tuesday after the drugstore chain joined rival CVS and other retailers in raising its hourly minimum wage.
The company will now pay at least $15 per hour to its staff beginning in October.
Earlier this year, CVS decided to raise minimum wages for its employees to $15 an hour effective July 2022.
Walgreens said the wage increase would take place in phases and is expected to be fully implemented by November 1 next year.
Total investment to support the starting wage increase is anticipated to be approximately $450 million over three years, with one-third of the amount spent in the ongoing financial year.
The company anticipates that it will partially absorb the cost through the normal course of business.
Walgreens’ decision to raise minimum wages comes as certain sectors of the economy continue to grapple with labor shortages not seen in decades.