On Wednesday February 25, TJX, parent company of the TJ Maxx, Marshalls and Home Goods retail chains announced it is joining a growing list of retailers increasing base pay for hourly employees to $9 an hour. The company follows Walmart, IKEA,   Gap  and others in moving beyond the federally mandated minimum wage. Walmart has promised an additional $1 per hour base pay raise to follow over the course of the coming year.

The retail business model has been built on the model of a transient, low-paid, mostly part-time in-store work force for the past hundred years.   But the times, they are a-changing.  With the threat from online retailers, brick and mortar stores need to improve customer service to the point that it provides enough value to a customer choosing between them and mail order.

Retailers such as Home Depot and Best Buy have profited from improving the pay rates and morale of their workers.  2015 is being called The Year of The Retail Store Employee by some.  The question is, who’s next?   In California the minimum wage is already $9 an hour, but considering the cost of living there an employee in Arkansas making $9 an hour is now making more.  If California companies are to follow suit, they will have to pay their starting employees at $10 an hour or more.

It will be interesting to see if large employers such as Walgreens, CVS, Staples, and Target join the party and realize that you get what you pay for.

More about TJX and the Year of the Retail Employee can be found here.