Puma Plans to Raise Hourly Wage for Retail Employees
GOING UP: Hiring and maintaining employees for retail is increasingly competitive, as what is expected to be a busy holiday selling season gets underway and the country continues to grapple with staffing shortages. With that in mind, Puma is the latest big brand to increase the minimum wage for its retail workers to $15 per hour in the U.S. and in Canada.
The uptick in pay will go into effect starting Nov. 29.
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The sneaker giant announced the move Monday. The pay raise will impact 1,300 retail employees in North America. There are 500 other retail employees in other parts of the world, a company spokeswoman said.
Puma declined to specify the current percentage of job openings within the company, she said.
Store employees’ hourly wages varied by market based on local minimum wage laws. Staffers learned of the increase via a company conference call with store managers and field leaders, who then informed their respective staffs.
In addition to a flagship, Puma has 94 outlet stores in the U.S., as well as two in Puerto Rico and 18 more in Canada. The company plans to open three more outlet stores before the end of the year — one in Aurora, Ohio, one in Winnipeg, Manitoba, and one in Dartmouth, Nova Scotia.
By increasing hourly wages for store employees, Puma is following in the footsteps of retailers including Macy’s and the Walmart-owned Sam’s Club, which each hiked hourly pay to $15 for its store employees in September. Macy’s announced last week that it is raising minimum wage across the organization and also is making a $35 million four-year investment in new educational benefits. Other companies like Ikea, Costco and Amazon have gone even higher, offering hourly rates of $16, $17 and $18 respectively.
Last year 73.3 million workers who were 16 or older in the U.S. were paid hourly wages, representing 55.5 percent of all wage and salary workers, according to the U.S. Bureau of Labor Statistics.
Referring to Puma’s retail employees as “a vital link” between the company’s customers and the Puma brand, Puma North America president Bob Philion described raising their wages as “the right thing to do.” He added, “I’m hopeful this positive change will ensure all our employees feel supported and valued, while pushing our entire industry forward toward this important benchmark.”
Philion added, “I’m grateful for our retail team’s unwavering commitment, especially as we have navigated ongoing uncertainties throughout the pandemic. It’s not been without its challenges, but I’m so proud of all we’ve accomplished and the growth we continue to see, rooted in the friendly faces of our in-store teams.”
