Best Buy to hike starting hourly pay to $15, effective Aug. 2

RICHFIELD, Wis. — Best Buy announced Tuesday it will boost its minimum wage for U.S. employees to $15 per hour.

The bump in guaranteed starting pay follows other retailers, such as Target, and takes effect Aug. 2 - one day after temporary incentive pay increases are slated to end for retail associates and supply chain workers who have been working throughout the novel coronavirus pandemic, the Star Tribune in Minneapolis reported.

In addition, all hourly U.S. workers will receive a 4% pay increase, but anyone not reaching the $15-per-hour mark after the percentage increase will receive a blanket pay bump to achieve that benchmark, WCCO reported.

The electronics retailer furloughed roughly 51,000 U.S. employees in the earliest days of the COVID-19 pandemic, but nearly half of those employees have returned to work since June 15, the TV station reported.

During that same time period, in-store sales have increased 15% compared with the same period one year ago. In addition, total second quarter sales increased 2.5% compared with the prior year, the Star Tribune reported.

“Strong consumer demand, combined with shopping experiences that emphasize safety and convenience, has helped produce our sales results to date,” Best Buy CEO Corie Barry said in a prepared statement.

“None of this would be possible without the effort and energy of our front-line employees working in stores, supply chain facilities and customers’ homes. Today’s announcement on pay reflects an ongoing evolution and investment in how we compensate them for their critical work,” he added.

Cox Media Group