Best Buy will permanently raise its minimum wage to $15 an hour for U.S. workers, following other retailers such as Target.
Best Buy hikes minimum wage to $15, sales up 15% since reopening stores
Retailer's sales are up 15% in the month since stores have been fully reopened.
July 22, 2020 at 1:37AM
The Richfield-based electronics chain also said Tuesday its sales are up 15% since stores opened in mid-June to July 18, compared with the same period a year ago.
The new pay for domestic hourly employees will take effect Aug. 2, a day after temporary incentive pay increases for retail associates and supply chain employees who have been working through the coronavirus pandemic were scheduled to end.
Best Buy closed its stores to foot traffic as a health precaution in March, pivoting to online orders and curbside pickup. It reopened the majority of its locations a little more than a month ago.
Online sales remain strong, Best Buy said, increasing 185% above last year during the period from June 15 to July 18.
Altogether, the company's second-quarter sales, including domestic and international sales, have increased about 2.5% so far compared with last year.
"Strong consumer demand, combined with shopping experiences that emphasize safety and convenience, has helped produce our sales results to date," said Corie Barry, Best Buy's chief executive, in a 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."
At the time it started reopening stores in mid-June, Best Buy also began to bring back employees it had furloughed earlier this year. The retailer so far has brought back about half of the 51,000 employees who were furloughed.
Health care spending rose by 15%, driven by higher prices. Officials say solutions are needed to prevent Minnesotans from being priced out or delaying care they need.
